Cannabis Industry Strikes in the US Reach Record Duration
Workers in Michigan and Pennsylvania lead the longest work stoppages in the history of the sector, exposing growing labor tensions
Two distinct and ongoing strikes at cannabis companies in the United States are now the longest work stoppages in the country's legal marijuana industry history, valued at $32 billion. While those involved are pushing the federal government to intervene, observers point out that the turmoil in the sector may escalate.
The current conditions, both in the cannabis industry and the American economy in general, suggest a conducive scenario for more labor conflicts, despite the challenges faced by workers in some markets.
The two main strikes are taking place at Exclusive Brands in Ann Arbor, Michigan, where the strike began on August 28, and at RISE stores, operated by multi-state operator Green Thumb Industries (GTI), in York, Pennsylvania, which started on September 1.
Context of the Strikes in the Cannabis Industry
Although simultaneous, the strikes are not coordinated and have significant differences, already surpassing by more than a week the previous record of 13 days, set in April 2023. In Michigan, a small group of Exclusive Brands workers initiated the strike because management refuses to recognize a union election.
In Pennsylvania, unionized RISE workers voted for the strike after over a year of contractual negotiations without an agreement.
Challenges and the Future of Labor Relations in the Sector
Once seen as a significant opportunity for union growth, the cannabis industry is facing recent challenges, suggesting there are fewer profits to contest between management and workers. However, the heated labor market and the continuous rise in the cost of living motivate employees to fight for better wages.
The strikes come at a time of relative stagnation in union efforts following a wave of organization under the Biden administration. Critics argue that marijuana companies have been using tactics from other sectors to weaken unions, as seen in the efforts for de-unionization in several states.
The potential return of a pro-business agenda in Washington may encourage more employers to resist organizational movements, using a National Labor Relations Board favorable to companies.
The Two Strikes in Different Markets
In Michigan, four Exclusive Brands employees, organized by the United Food and Commercial Workers (UFCW) union, went on strike after the company allegedly fired a pro-union worker.
In Pennsylvania, all eight workers at the RISE bargaining unit, affiliated with the International Brotherhood of Teamsters, are on strike. They demand a starting wage of $18 per hour, the same amount achieved by Green Thumb colleagues in Chicago after a strike in 2023.
The two cannabis industry strikes are happening in very different business environments: Michigan has a mature and competitive adult-use market, while Pennsylvania has a robust exclusively medicinal market with limited licenses, considered ideal for profitability.
With information from MjBizDaily