Oregon voters approve pro-labor change to state cannabis law

Voters in Oregon appear to have approved an organized labor-friendly change to state cannabis law that’s had mixed results in other states.

With more than 80% of ballots counted, 55.7% of state voters cast yes ballots on Measure 119, which will require cannabis operators in the state to submit a “labor peace agreement” to regulators before receiving or renewing business permit, Oregon Public Broadcasting reported.

The voter initiative’s main sponsor was the United Food and Commercial Workers (UFCW) Local 555, which spent more than $2.8 million on the campaign after a failed attempt to impose a labor peace agreement (LPA) requirement through the state Legislature.

Several other states, most notably California, require cannabis businesses to have an LPA as part of licensing requirements.

Along with the International Brotherhood of Teamsters, the UFCW is the most prominent national labor organization attempting to organize cannabis employees.

In Oregon’s case, the new law requires a marijuana employer “to remain neutral” toward a labor union while its representatives make contact with staffers.

In theory, such an arrangement should encourage unionization.

However, the LPA requirement can be subverted, as MJBizDaily has reported.

Across the country, groups passing themselves off as labor unions but later found to be pro-company shams have signed LPAs with cannabis companies.

And simply because a workplace is organized does not mean a contract is guaranteed.

A UFCW-organized marijuana store in Phoenix had to resort to the courts after the company refused to bargain with workers and allegedly offered benefits to non-union workers, according to filings.