The ballot initiative, , requires cannabis businesses in Oregon to sign 鈥渓abor peace agreements鈥� with a 鈥渂ona fide labor organization鈥� that鈥檚 representing, or trying to represent, their employees. At a minimum, that agreement requires management to be neutral and not interfere with organizing efforts.
If a business fails to comply, it could face fines and have its license revoked.
Miles Eshaia, with the regional United Food and Commercial Workers Local 555 union, says the agreements are necessary for employees to better fight for safer workplace conditions, like being supplied protective gear when using chemicals.
鈥淲orkers should have the freedom to unionize their workplaces,鈥� said Eshaia. 鈥淏ut because cannabis is still federally illegal, there's enough confusion for anti-union employers to skirt the law and retaliate against attempted unionization efforts.鈥�
He says the federal National Labor Relations Act, which protects employee's right to organize, carves out agricultural workers. But many cannabis companies are vertically integrated, meaning that someone who works on a farm also works in retail.
鈥淭hat's where a lot of the confusion comes into place and where employers who are trying to fight a unionization effort will misclassify workers or attempt to confuse workers. And we're just trying to avoid all that,鈥� said Eshaia.
He said UFCW 555 has been close to unionizing cannabis businesses in Oregon, but so far has not been successful.
鈥淲e've taken multiple runs at multiple locations,鈥� said Eshaia.
Last year, the union supported a legislative bill similar to Measure 119. When that law didn鈥檛 pass, UFCW 555 funded a failed against Democratic State Representative Paul Holvey of Euegene who the union blamed for killing the legislation.
Similar 鈥渓abor peace agreement鈥� laws have been passed in New Jersey, New York and California. Although San Diego cannabis shop Ctrl Alt Destroy sued the state this year, claiming that requirement was unconstitutional by violating freedom of speech protections.
The International Brotherhood of Teamsters union has also , alleging businesses have signed agreements with 鈥渟ham鈥� unions that have no intention of organizing.
Meanwhile, experts warn some of Oregon鈥檚 cannabis businesses may not survive unionization. Economist Beau Whitney with Whitney Economics, which studies the cannabis industry, said the marijuana market is already struggling with low prices and profits.
鈥淵ou've got this issue where there's really not a whole lot of options to absorb increases in costs,鈥� said Beau. 鈥淎nd as a result of that, it's going to be a challenge to absorb the costs associated with the unionization.鈥�
He said his group doesn鈥檛 take a position on Measure 119. But they recently did an analysis on potential investment opportunities in the Oregon marijuana industry.
鈥淭here is none. Zero,鈥� said Beau.
He said before legalization on the federal level or a new regulatory framework in Oregon, increasing labor costs could further hurt the floundering market.
