Outstanding marijuana multistate operator Curaleaf Holdings sued New Jersey hashish regulators earlier this month in search of to overturn labor-friendly licensing necessities in addition to punishment the corporate claims is “the business equal of the dying penalty.”
In a grievance filed Oct. 9 in United States Court docket in New Jersey towards the state Hashish Regulatory Fee, attorneys for Stamford, Connecticut-based Curaleaf allege that state regulation requiring hashish companies to acquire labor peace agreements (LPAs) violate federal regulation.
Mandated in a number of pro-union states, together with California and New York in addition to New Jersey, an LPA is a pact by which a enterprise agrees to stay impartial throughout organizing actions. In return, the union agrees to forego strikes and boycotts.
Neither the New Jersey CRC nor representatives for Curaleaf instantly responded to requests for touch upon Tuesday.
In line with its go well with, Curaleaf had an LPA with the United Meals and Business Staff (UFCW) Native 360 that expired in April after the union and the corporate couldn’t agree on a renewal.
UFCW is one in every of two main unions organizing employees within the labor-intensive hashish business together with the Worldwide Brotherhood of Teamsters.
The lawsuit alleges that LPAs violate the federal Nationwide Labor Relations Act (NLRA).
It seeks a decide’s declaration that New Jersey’s LPA requirement violates federal regulation and can’t be enforced and that regulators can’t punish Curaleaf for not abiding by it.
Curaleaf lawsuit is newest problem to pro-union hashish legal guidelines
Curaleaf’s problem to the LPA requirement in New Jersey is the newest of a number of ongoing lawsuits that search to undo the labor-friendly licensing necessities seen in a number of main marijuana markets throughout the U.S.
Nevertheless it additionally follows a profitable authorized effort to strike down an LPA requirement in Oregon.
In that case, a federal decide discovered that LPAs, which require companies to stay impartial throughout unionization pushes, violate First Modification protections on free speech in addition to the NLRA.
And it appears to be timed with each that courtroom case in addition to a extra pro-business shift in President Donald Trump’s second time period after the labor-friendly Biden administration, observers stated.
“I consider that Curaleaf and people like them are attempting to capitalize off the federal authorities and the (Trump) administration, which is probably the most anti-union administration I’ve seen in my profession,” Hugh Giordano, an organizer with Native 360, advised MJBizDaily.
UFCW will not be a celebration within the go well with.
Curaleaf dangers six-figure fines and business ‘dying penalty’ over labor violation
In August, New Jersey regulators fined Curaleaf $610,000 for being in violation of the LPA requirement since April, in line with an Aug. 25 discover.
In line with the lawsuit, state regulators are additionally threatening to fantastic the corporate a further $5,000 for daily the corporate stays out of compliance.
Regulators have additionally hinted that they might “revoke Curaleaf’s licenses” totally, in line with the go well with.
That’s partially as a result of the allow for the corporate’s hashish retailer in Bordentown, New Jersey, was renewed “upon the situation that they safe an LPA by October 31,” the lawsuit claims.
“That’s the business equal of the dying penalty,” the corporate’s attorneys wrote.
A part of sample of resistance to hashish labor organizing
Curaleaf has employed distinguished employer-side regulation agency Littler Mendelson to characterize it within the case.
The agency, which Starbucks has additionally employed in its clashes with pro-union baristas, has a nationwide status for being anti organized labor.
Curaleaf has additionally confirmed prepared to battle unionization efforts by different means.
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In July, a decide for the Nationwide Labor Relations Board (NLRB) discovered that Curaleaf unlawfully fired an worker in Arizona for pro-union exercise.
Unionized employees there have been unable to barter a contract with the corporate for a number of years.
Different firms have gone to lengths some observers say are excessive of their efforts to bypass LPAs. These embrace inking offers with so-called firm unions or sham unions that don’t have any intent on finally organizing employees.
Regardless of firms’ opposition to them, LPAs have had combined outcomes for employees.
Annoyed with the gradual progress in acquiring contracts, some unionized employees have voted to eradicate their unions.
Chris Roberts will be reached at chris.roberts@mjbizdaily.com.
