Cannabis Industry Learns Lesson As Teamsters Union Flexes Its Muscles

The 13-day unfair labor practice strike led by Teamsters Local 777 in May at two Rise Cannabis dispensaries in Joliet and one in Niles, Illinois, which forced parent company Green Thumb Industries Inc. GTII GTBIF to raise wages by 50%, has reached its conclusion.

What Happened

The first collective bargaining agreements between Rise and members of Teamsters Local 777 at three dispensaries have been ratified, according to a Tuesday press release.

"Let this be a lesson to cannabis companies all across not just Illinois, but the entire country – Teamsters don't back down," said Jim Glimco, Local 777 president. "A lot of people who went through what these men and women went through, they would've thrown in the towel. Not this group. They're young, energetic, tough, smart; they look out for one another, and they embody what being a part of this union is all about."

Why It Matters

Under contracts, employers at Rise dispensaries are now entitled to wage increases of 18% over the lifetime of the agreement, attendance bonuses, a scheduling policy based on seniority, guaranteed tips and discounts, improved safety standards and protection against unjust termination or discipline.

Reilly Drew, a Rise worker who served on the bargaining committee, is thrilled with their accomplishment.

"We started as a small but united group of workers," Drew said. "Over the last year and a half, we have grown to be a strong union, changed our workplace for the better, and forged a bright path forward for workers in our industry."

Wendy A. Berger, GTI's board director will undoubtedly shed some light on the topic at the upcoming Benzinga event in Chicago this Sept. 27-28.

Teamsters In Michigan

In Michigan, drivers and budtenders at Ascend Cannabis Provisions ratified their first contract with Teamsters Local 406 last week, representing the second such agreement in the state cannabis market.

According to last week's press release from the International Brotherhood of Teamsters, some of the benefits the workers are entitled to under the agreement include a three percent wage increase for all workers each following year, protections from unjust termination and discipline, and enhanced safety for drivers, to name a few.

"I think we have some momentum, and we have the opportunity to strike while the iron is hot to take back what's ours," said Adam Mosher, an Ascend delivery driver and bargaining committee member. "Now is the time."

California's Fake Cannabis Unions

Meanwhile, there's a minimum of 10 suspicious "labor organizations" in California identified by experts as similar to previously debunked "unions" deemed fraudulent by state regulators in July that are entering into labor agreements with cannabis companies.

The news comes on the heels of the International Brotherhood of Teamsters filing a complaint with the state Agricultural Labor Relations Board, raising concerns about an organization called the National Agricultural Workers Union.

The entity, which has entered into labor agreements with licensees doing business under the Caliva brand, a property of The Parent Co., is now under investigation for allegedly being a deceptive 'fake union' in direct violation of state laws.

According to records obtained by MJBizDaily, some of the 83 retail, distribution and manufacturing licenses that have partnered with such "labor organizations" so far are Jeeter, publicly traded retail company Unrivaled Brands, Inc. UNRV, Glass House Brands Inc. GLASF GHBWF GLAS GLAS and cannabis-infused products maker Papa & Barkley.

Recent Teamster Activity In The Cannabis Industry

• Teamsters unionized budtenders at Captain Jack's Dispensary in San Bernardino, California, in February.
• The Teamsters won an unfair labor practice complaint filed against SNDL Inc.
• Teamsters unionized nearly 400 cannabis workers since Jan. 1st.
• Sunnyside Dispensary in Buffalo Grove, Ill. and more than 300 drivers and warehouse workers at cannabis delivery service Grassdoor joined the Teamsters in January.

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo: Benzinga edit of photo by Paul Einerhand and krakenimages on Unsplash