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Is A Cannabis Workers Union Coming to Oregon?

A primer on Measure 119

Josh Jardine Oct 2, 2024 13:00 PM

There are numerous topics that are historically divisive, of which people have very strong feelings — politics, religion, reproductive rights — and to that list you can add unions. This November, Oregonians will be asked to vote on Ballot Measure 119, which moves Oregon toward unionization of cannabis workers.

This measure is made more complex by the fact that it involves everyone's favorite federally illicit substance, cannabis, and all the regulatory and financial baggage it brings to the table.

The first Labor Union formed in 1866, and called for something that we now take for granted — an 8-hour work day. It wasn't immediately embraced by employers, as evidenced by the decades it took to gain the support needed for passage. It wasn't until 1916 that the Adamson Act passed, giving railroad workers both an 8-hour workday and overtime pay. Railroads were not happy, and challenged the Act in court, but the Supreme Court found in favor of the union in 1917.

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This momentum propelled unions into other industries, and in 1938, the Fair Labor Standards Act was passed, which, per the Library of Congress, "including the creation of the right to a minimum wage, overtime pay for working more than 40 hours a week, and provisions related to child labor." Many states began following suit, establishing their own minimum wage laws.

None of these changes came about quickly, easily or without substantial bloodshed and loss of life. The University of Washington estimates that between 1907 and 1974, there were over 170 deaths of International Workers of The World union members.

As cannabis has established itself as a regulated industry in many states, both in medical and recreational (Adult Use) programs, the number of people employed has skyrocketed. As Marijuana Moment reports, legal cannabis jobs nationwide have grown from 122,800 in 2017, to 440,445 in 2024.

During that same time period, Oregon's Adult Use cannabis sales rose from over $420,000 in 2017 to over $950,000 in 2023, hitting a peak of over $1 billion in 2020 and 2021. State statistics show that as of 2022 "7,671 people worked in the cannabis field in manufacturing, professional and business services, agriculture, trade, transportation, and warehousing, and other services." The total number of Oregon Marijuana Worker Permits issued by February 2024 was 55,445.

Measure 119 was crafted and supported by the State's largest private sector union, United Food and Commercial Workers Local 555. Last year, the UFCW tried to pass a similar measure, but were thwarted by lawmakers fearing it would be in conflict with federal labor laws.

The re-worked measure would require a cannabis retailer or processor to sign and submit an agreement to the OLCC when applying for a new or renewed license. That agreement is known as "Labor Peace Agreement," which Ballotpedia explains is "an agreement by which an applicant or licensee agrees to remain neutral with respect to the labor organization's representatives communicating with the employees of the applicant or the licensee about the employees' rights."

Failure to submit such an agreement, or to operate within the confines of said agreement, gives the OLCC the power to deny the application, both new and renewed. If that agreement is ended, the business has 10 days to agree to another, or risk a 10-day suspension of their license or a $1,650 fine. Cannabis license holders in California, Connecticut, New Jersey, New York, and Virginia must abide by similar agreements.

Thus far, the only contributor to 119 is the UFC 555, which donated $2.4 million as of July. Organized opposition has been nearly non-existent, although the state's largest business trade group expressed concern last year that the efforts would run afoul of the Federal National Labor Relations Act. If cannabis were to pass rescheduling, that concern could be moot.

With Oregon's continuing struggles with cratering cannabis prices, oversupply and soft sales, the inevitable increase in labor costs are a concern to some, but the lack of opponents may well see 119's passage in November.