Marijuana Business Magazine - April 2018

C annabis business owners increasingly must confront a workplace reality that mainstream companies have faced for generations: organized labor. Front and center is the United Food and Com- mercial Workers union, which is aggressively seeking to convince cannabis workers to join its ranks.The UFCW said it aims to organize cannabis workers in every state where marijuana is legal, and that it already represents “tens of thousands” of MJ workers in multiple states. The union’s ranks include employees in cultivation facilities, dispensa- ries, infused product companies and labs. The Teamsters and the United Farm Workers are also trying to organize marijuana industry workers. In California, it will be hard for many marijuana businesses to avoid dealing with unions.The Golden State requires marijuana busi- ness licensees that have at least 20 employees to strike a “labor peace agreement” with a union. Such a pact can ultimately pave the way for unionization. New York has a similar labor peace agreement requirement for mari- juana businesses. Unions also are making inroads in other states. Following is what you need to know and the steps you can take when dealing with a union seeking a peace agreement. In most cases, it can be relatively quick and affordable. The ABCs of Labor Peace Agreements A labor peace agreement is not the same as union representation. Such a pact between a marijuana company and employees establishes the rules for a union organizing campaign, according to attorney Marga- ret J. Grover, a partner with Wendel, Rosen, Black & Dean in Oakland, California. In other words, a labor peace agreement can be the first step toward unionization. “Labor peace agreements drastically increase the likelihood of unioniza- tion,” attorneys Warren Nelson and Christopher Conti said in an email. Nelson is a partner with the Irvine, California, office of the law firm Fisher Phillips, and Conti is an associate in the firm’s San Diego office. Currently, California and New York are believed to be the only states that require the agreements in the cannabis industry, according to attorneys. Many California marijuana businesses, however, are blind to that requirement, said Megan Vaniman, an attorney with Harris Bricken in Portland, Oregon. “In California, most cannabis business owners are unaware of what a labor peace agreement is,” Vaniman said. “They are learning about them as they are obtaining licenses.” April 2018 • Marijuana Business Magazine • 77 EXECUTIVE SUMMARY Cannabis businesses increasingly must deal with unions seeking to represent their employees. The first step in union representation can be a labor peace agreement, which establishes the rules for a union organizing campaign. Below is what you need to know when dealing with a union seeking such a pact: • Hire a good attorney, ideally a labor attorney that also understands marijuana laws in your state. • Decide what you want out of the labor pact. Don’t agree to anything that is too vague or subject to interpretation. • Remain neutral as far as a labor peace agreement or full union representation. For example, don’t fire someone for advocating for a union or offer incentives to employees who oppose the union. • Even if union representation is not your first choice, remember that unions have been strong advocates for legalizing marijuana and allowing dispensaries in communities. • California and New York are believed to be the only states that currently require the agreements in the cannabis industry.