Paying Dues For Nothing? Cannabis Workers At Cresco Labs' Illinois Facility Leave The Union, Get 15% Raises

Marijuana workers at Cresco Labs' CRLBF production facility in Joliet, Illinois, recently voted to leave their union – United Food & Commerical Workers, first reported Crain's Chicago Business.

Employees at Cresco's facility in Joliet were the first cannabis workers in Illinois to unionize, and now have voted 97-34 to decertify their unit. Jonathan Keselenko, a partner in Foley Hoag's cannabis practice in Boston, told the outlet that this moves seems to indicate that the excitement for unionization among cannabis workers is fading. In April, employees at Cresco’s Massachusetts cultivation facility voted to de-unionize, instead of negotiating another labor deal as its contract neared expiration.

"No doubt they were an early target of unions who saw them as ripe for organizing," Keselenko said. "Now the industry is seeing a lot of the kinds of issues that have happened in other industries, like Starbucks, where a number of them have asked to decertify the union."

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"I see this with clients in manufacturing and retail. The union comes in, makes promises, and for whatever reason, employees become disenchanted and decide they don't want them anymore. Cannabis companies are seeing it now, and I'd expect to see more of that," Keselenko continued.

This appears to be the first example of cannabis workers in Illinois leaving a union. The move comes shortly after workers at Sunnyside, a Cresco subsidiary in River North, voted overwhelmingly to join Teamsters Local 777. The UFCW also still represents other cannabis company's employees in Illinois and workers at other businesses.

It All Comes Down To Economics

Jonathon O'Connor, an automation technician guiding the de-unionization process at the Joliet facility told Crain's Chicago Business that the decision was based on economics.

"There were multiple issues," he said. "People filed grievances, but we didn't hear from (the union) until we began the process to get rid of them. There wasn't much interaction . . . we never had a steward. People felt like they were paying them (dues) for nothing."

O'Connor further added that employees got 15% raises and eligibility for stock options after leaving the union, while Cresco stated, "We are very proud that our employees in Joliet have signaled their trust in Cresco by choosing to work directly with us."

Over the last several years, both Teamsters and UFCW have been pushing hard to unionize workers in the nascent cannabis industry. Recent unionizing efforts were undertaken across the country at major companies in 2023, including, the cannabis Company CBSTFin California, Grassdoor in California, Verano Holdings Corp VRNOF in Chicago, Ayr Wellness AYRWF in Nevada, and Nabis in California.

Read Next:

• Fake Cannabis Unions And A Legal Battle Over Labor Practices In California
• Judge Orders Cannabis Dispensary To Rehire Fired Workers And Bargain With Union Even Though Workers Voted Against Unionization

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Photo: Courtesy of CRYSTALWEED cannabis on Unsplash