Some Cannabis Employees Are Voting Out Their Union

Foley Hoag LLP - Cannabis and the Law
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Foley Hoag LLP - Cannabis and the Law

Some cannabis workers in recent months have grown weary of their unions and have voted the unions out – or, in labor terms, “decertified” them. This has happened in two different Cresco Labs facilities. The first occurred at a Fall River, MA dispensary in April 2024; the second at a dispensary in Joliet, IL, in June 2024. I had the opportunity to speak recently to Boston Globe and Crain’s Chicago Business (as reported in the Green Market Report) about this trend.

The decertification process can be cumbersome, and employees must get the timing right. Employees cannot decertify their union for at least a full year after the union election (this is known as the “election year bar”). If a collective bargaining agreement is reached, employees must wait three years before requesting a decertification election, minus a small 30-day waiting period. These rules are designed to promote industrial stability. As with the effort to unionize an employee, as an initial step in decertifying a union, at least 30% of workers must sign cards or a petition asking the National Labor Relations Board (“NLRB”) to hold a decertification election.

Most facilities that become unionized stay that way, but decertification is also not unheard of. Workers in many other types of industries have decertified their unions.

It takes an average of 465 days to reach a first contract. As time passes, it is not uncommon to see dissatisfaction with union representation. Take Starbucks. At least 165 of 329 Starbucks units have been represented for a year. But none of the stores have reached a contract. After passing the one-year mark, workers at ten stores filed petitions to decertify their union. Sometimes, workers at a facility with a CBA also see their wages and benefits fall behind non-union colleagues or competitors, causing obvious dissatisfaction. According to press reports, this happened at Cresco’s Juliet facility.

Decertification in the cannabis space can be seen as a sign that the industry has matured and is following trends in other sectors. It could also indicate that unions overpromised what they could get. As the industry matures and companies offer better wages, benefits, and working conditions, some employees have decided they don’t need a union.

Finally, please note that it is unlawful for an employer to initiate the decertification effort. Employees must decide on their own whether to begin the process. However, employers can make their position known once a decertification petition is filed.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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