Petition for Oregon cannabis unions takes step closer to November ballot

A petition that would require Oregon cannabis businesses to allow employees to unionize is one step closer to making the Oregon ballot in November.

PORTLAND, Ore. (KOIN) – A petition that would require cannabis businesses to allow employees to unionize is one step closer to making the Oregon ballot in November.

Initiative Petition 35, the United for Cannabis Workers Act, received 163,000 signatures, which is about 46,000 more signatures than is required to qualify for the ballot, according to the UFCW Local 555, the organization behind the petition.

After signatures were turned in to the Oregon Secretary of State's Office on July 5, the office must complete signature verification by Aug. 5.

The petition aims to ensure licensed businesses that sell, or process cannabis enter a labor agreement allowing employees to organize and speak out without fear of retaliation, according to the petition text -- noting "ambiguities" in federal law can lead to unsafe workplaces, and wage theft.

Under IP 35, cannabis businesses would be required to submit labor peace agreements along with license applications or renewals to the Oregon Liquor and Cannabis Commission.

If a labor agreement is terminated, businesses have 30 days to enter a new agreement or face license suspension or a $1,650 fine. After 60 days, the fine grows to $4,950.

“Simply put, the ballot measure will require any cannabis dispensary or processor to enter into a labor peace agreement affirming the right of their workers to form a union if they so choose. When Oregon first legalized cannabis, it did not build in worker protections that other states, such as California, New York, and New Jersey did. Because of vague federal laws, some employers have refused to acknowledge workers’ rights. This measure makes such acknowledgment part of the licensure process,” said UFCW Local 555 Communications Coordinator Miles Eshaia.

UFCW Local 555 Secretary-Treasurer Sandy Humphrey added, “Cannabis workers lack the protections to speak out about safety and product standards. We’ve heard the same stories from cannabis workers across the state. Toxic chemicals, unchecked pests, and fire hazards plague the Oregon cannabis industry. Employers are cutting corners at every step at the cost of workers and consumers. When workers try to speak out about safety concerns or products that don’t meet state regulations, they’re met with intimidation because they lack the protections other workers have. The reality is, when you buy weed in Oregon, you don’t know if it meets basic consumer standards and you don’t know whose life was put in danger to make it."

Portland-based economist Beau Whitney of Whitney Economics -- who also serves as chief economist for the National Industrial Hemp Council and the National Cannabis Industry Association -- told KOIN 6 News the petition could be beneficial for employees who work for large cannabis businesses but could harm small businesses in Oregon.

In the last three years, the cannabis industry has been in a period of "rapid decline," Whitney said.

“Contrary to the image of the industry, there's not a whole lot of businesses that are making profit. In fact, roughly 27% of all businesses in cannabis across the country are profitable. So, that means that 73% are not, they're either breaking even or worse,” Whitney said.

“A lot of the reason for this lack of profitability is high costs. You've got high costs for interest rates and your loans, you've got high costs associated with increased labor and increased materials, there's been labor inflation,” Whitney added. “With this increase in costs, at the same time in Oregon, the supply has gone through the roof, there's a massive oversupply of products. When you have a mismatch between supply, too much demand pretty constant to down, then prices tend to go down. So, what retailers and processors are facing right now is declining revenues and increased costs."

“That's not a recipe for success in a period where you're not making any profit. So, by increasing lobbying, and unionizing in order to raise wages, it's actually hurting the businesses themselves to the point where a lot of them may not survive. And so right now in Oregon, you're seeing a lot of consolidation. Businesses are selling out because they can't make it anymore,” Whitney said.

While some states have similar union measures in place, Whitney says those states have more regulations and limit licenses.

UFCW Local 555 argues, "This measure is designed to bring Oregon into alignment with other states. Oregon businesses of any size need to operate safely, and workers need to be able to address both personal and consumer safety concerns without fear of retaliation. Small businesses also deserve to be able to compete against larger ones fairly, and not against employers who skimp on worker safety standards for profit. The truth is, every time a labor-friendly bill or measure comes up economists say it will destroy industries and profits, and it simply never does."

The OLCC told KOIN 6 News the agency does not take a position on legislation or voter initiatives.