Curaleaf Violated Labor Law By Refusing To Bargain With Union, NLRB Rules, After String Of Unfortunate Events

The National Labor Relations Board ruled on November 6^th that Curaleaf Holdings Inc. CURLF CURA violated US labor law by refusing to bargain with unionized workers at its Chicago location, reported Green Market Report.

The panel said that GHG Management LLC, which supervises Windy City Cannabis and Curaleaf Weed Street are obliged to recognize and bargain with employees within three weeks of receiving the notice from the NLRB, Law360 first reported.

“By failing and refusing since May 5, 2022, to recognize and bargain with the union as the exclusive collective-bargaining representative of the employees in the appropriate unit, the company has engaged in unfair labor practices affecting commerce within the meaning of federal labor law,” stated the order.

Six Months Of Unfortunate Events For Curaleaf

This recent decision follows the company's lay off of 220 employees in an effort to control costs and drive efficiencies. The company is seeking $40 million in cost savings in 2023.

Cantor Fitzgerald's Pablo Zuanic recently lowered the price target on Curaleaf's stock following the company's Q3 earnings report, which revealead a 16% decline in gross profit year-over-year.

In October employees at Curaleaf’s Edgewater, NJ. dispensary voted to organize as members of United Food and Commercial Workers. In view of the company's response to workers in its Chicago location, many believe management is not likely to be pleased about another unionization.

In August the company had to remove thousands of medical marijuana products from New York dispensaries after switching to an unauthorized method of labeling potency.

Curaleaf also settled a tortious interference lawsuit with Jushi Holdings Inc. JUSHF in a confidential settlement agreement, less than a month after being sued by Jushi. 

And finally, Curaleaf was sued in a class-action lawsuit over mislabeled THC And CBD Drops in June.

Price Action

Curaleaf shares were trading 4.08% lower at $5.64 per share at the time of writing Thursday morning.

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Photo: Benzinga; Sources: courtesy of AJEL, lindsayfox via Pixabay