Labor Peace Agreements In Cannabis And Higher Taxes For Corporations – 2 Initiatives Likely To Reach Ballot In Oregon

As the November election approaches so come deadlines for submitting signatures for various initiatives. In Oregon, the deadline was July 5th, and two groups successfully collected more than 100,000 signatures.

The two measures that now have a chance to end up on the ballot are: 1) imposing higher taxes on corporations, which will be used to pay $750 per year to every single Oregonian, and 2) enabling easier unionization in the cannabis industry. If the Secretary of State's Office confirms there are enough verified signatures from voters, they'll join three legislative referrals on the November ballot, writes the Oregon Capital Chronicle.

The news comes some four months after Oregon lawmakers passed a bill seeking to reform the state's approach to drug possession and addiction treatment. House Bill 4002, designed to counteract the fentanyl crisis and amend aspects of the voter-approved Measure 110, was signed into law by Governor Tina Kotek (D) in April. It goes into effect on 1 September.

Unionization In Cannabis

United Food and Commercial Workers (UFCW) Local 555 delivered more than 163,000 signatures for verification, which is about 46,000 more than required. This is not the first attempt by UFCW 555 to push for easier unionization across the marijuana industry. In 2023, the union pushed for the passage of House Bill 2183, a similar measure, but the bill was tabled due to concerns it would conflict with federal law.

"Simply put, the ballot measure will require any cannabis dispensary or processor to enter into a labor peace agreement affirming the right of their workers to form a union if they so choose," stated Miles Eshaia, communications coordinator for the union. "When Oregon first legalized cannabis, it did not build in worker protections that other states, such as California, New York, and New Jersey did. Because of vague federal laws, some employers have refused to acknowledge workers' rights. This measure makes such acknowledgment part of the licensure process."

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Under the proposed ballot measure, cannabis retailers and processors would be obliged to remain neutral when communicating with workers about labor organizations. Furthermore, cannabis businesses would need to present a "labor peace agreement" with a pledge of neutrality when applying for or renewing their state license.

Regarding concerns with the federal law, Michael Selvaggio, a lobbyist for the union, said that other states, such as California, New York and New Jersey have these types of provisions included in their cannabis laws. "There have been zero challenges of any kind of merit to this structure of organizing rights," he said.

Sandy Humphrey, union secretary-treasurer commented, focusing on workers' safety."Cannabis workers lack the protections to speak out about safety and product standards. We've heard the same stories from cannabis workers across the state. Toxic chemicals, unchecked pests, and fire hazards plague the Oregon cannabis industry. Employers are cutting corners at every step at the cost of workers and consumers. When workers try to speak out about safety concerns or products that don't meet state regulations, they're met with intimidation because they lack the protections other workers have. The reality is, when you buy weed in Oregon, you don't know if it meets basic consumer standards and you don't know whose life was put in danger to make it."

Higher Taxes For Corporations

The other imitative also expected to reach the ballot, Initiative Petition 17, collected more than 168,000 signatures. Under the proposal, corporate excise taxes would be raised to 3% on sales higher than $25 million and the proceeds would be used to send rebates to all state residents.

It is estimated that the average annual rebate would be around $750.

Opponents of the proposal argue that the higher taxes could make corporations flee the state. The campaign raised more than $700,000, mainly from out-of-state donors.

Secretary of State's Office has until August 5th, to verify the signatures.

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