A 'Fake' Marijuana Union Has California Teamsters Up In Arms

California's labor regulators have once again found themselves delving into the intricate world of cannabis labor agreements.

As reported by MJ BizDaily, the International Brotherhood of Teamsters has lodged a complaint with the state Agricultural Labor Relations Board, raising concerns about an organization called the National Agricultural Workers Union.

This entity, which has entered into labor agreements with regulated marijuana companies operating under the Caliva brand, is now under investigation for allegedly being a deceptive 'fake union', in direct violation of state laws.

Related Content: NAACP On Federal Marijuana Legalization & A Resolution Advocating For Workers' Rights In Cannabis Industry

What Happened

The controversy unfolds as California-based Caliva, a company owned by The Parent Co Holding Corp. GRAM GRAMF and backed by none other than the illustrious entrepreneur and hip-hop mogul, Jay-Z, finds itself ensnared in the legal dispute. Caliva, operating with multiple licenses under Nc3 Systems and Nc3 Systems dba Caliva, has allegedly formed labor agreements with the aforementioned National Agricultural Workers Union.

The crux of the complaint lies in the assertion that the National Agricultural Workers Union (NAWU) is nothing more than a facade. The Teamsters claim that this union lacks members and shows no genuine intent to organize workers, thereby questioning the legitimacy of its labor agreements. Both NAWU and Nc3 Systems are given a tight window of 10 days from August 16th to respond to these grave allegations.

Both Caliva and NAWU are required to respond within 10 days, thereby setting the stage for a potentially revealing showdown.

Labor Peace Agreements

This incident uncovers a critical aspect of California's cannabis industry: the labor peace agreements (LPAs) that businesses must establish with legitimate labor organizations before obtaining licenses. The essence of an LPA lies in the assurance that a company won't impede a union's organizing efforts. However, this incident underscores how some entities have taken advantage of the situation by establishing what is being referred to as "fake unions," which essentially lack members and genuine organizing intent.

As the investigation continues, questions linger about how regulatory agencies approved licenses for companies that entered into agreements with questionable unions. The California Department of Cannabis Control (DCC) has reiterated the need for marijuana companies to partner with genuine unions, but the nuances of how these situations arose remain unaddressed.

Related Content: Teamster-Led 'Longest Strike' In Cannabis History Ends After 13 Days, Negotiations Are Still Ongoing

Peter Finn, the Teamsters' Western Region vice president, has issued a statement reiterating the union's commitment to ensuring the rights of industry employees. Finn stressed the importance of thwarting attempts to circumvent labor peace agreements through deceptive practices, which ultimately undermine the voice of workers.

Are you interested in the landscape in which the regulations of the cannabis industry are continually evolving? Consider joining us at the upcoming 17th edition of the Benzinga Cannabis Capital Conference, which is returning to Chicago on September 27-28. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Image by El Planteo