Judge Orders Cannabis Dispensary To Rehire Fired Workers And Bargain With Union Even Though Workers Voted Against Unionization

Myong Joun, a federal judge in Boston made a decision in a case involving marijuana dispensary operator I.N.S.A. and the National Labor Relations Board (NLRB). The judge ruled on Tuesday that I.N.S.A. must bargain and recognize a union even though its workers voted against unionizing and it must re-hire two employees who supported the union, reported Reuters. 

Joun granted NLRB's request for a temporary injunction demanding I.N.S.A. to bargain with United Food and Commercial Workers (UFCW) and re-hire two employees who had been fired just before a 2022 election. While the workers voted 17-11 against unionizing, Joun said that the dispensary violated employees’ rights, by firing two pro-union workers and therefore ruining the chance for proper election. 

“We are pleased that the district court decision provides the critical interim relief that employees need to exercise their rights under the National Labor Relations Act,” NLRB general counsel Jennifer Abruzzo stated. 

Alex Robertson, a lawyer for UFCW, also agreed with the ruling. "As we argued in our brief, questions regarding the Board's interpretation of the Act should be decided in the ordinary course of Board administrative litigation." 

As the industry develops, more employees join unions and cannabis workers conditions are changing. If you are curious to learn all about the future of the cannabis industry, join us at the Benzinga Cannabis Capital Conference this October in Chicago. Hear directly from key industry players, experts, advocates, and policymakers. Get your tickets now by following this link. 

‘Mere Fortune-Telling' 

In September, administrative judge Andrew Gollin ordered I.N.S.A. to bargain with the union. Gollin was the first to apply a new pro-union standard from the NLRB that draws from a case involving building materials firm Cemex Construction Materials, "which opened the door for many unions to gain recognition without winning elections in cases where employers commit unfair labor practices," Reuters reported at the time. 

In this case, Joun denied I.N.S.A. claims that the 2023 NLRB ruling in relation to Cemex will likely be overturned by federal appeals courts and therefore should not be used in its case. Joun said he would not engage in “mere fortune-telling.”

Over the several years, unions such as the UFCW and the International Brotherhood of Teamsters 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, Nabis in California, The Cannabist Company CBSTFin California, Cresco Labs CRLBFin Illinois, Grassdoor in California, and Verano Holdings Corp VRNOF in Chicago.

See Also: This Is The Latest NJ Dispensary To Organize With UFCW Local 360

Cannabis and courts illustration via Shutterstock.