Cannabis Industry Learns Lesson As Teamsters Union Flexes Its Muscles
Portfolio Pulse from Jelena Martinovic
The Teamsters Local 777 union led a 13-day strike at two Rise Cannabis dispensaries in Illinois, owned by Green Thumb Industries Inc., resulting in a 50% wage increase. The first collective bargaining agreements between Rise and the union members have been ratified. Under the contracts, employers at Rise dispensaries are entitled to wage increases of 18% over the lifetime of the agreement, attendance bonuses, a scheduling policy based on seniority, guaranteed tips and discounts, improved safety standards, and protection against unjust termination or discipline. Similar agreements have been reached in Michigan with Ascend Cannabis Provisions. Meanwhile, suspicious 'labor organizations' in California are under investigation for entering into labor agreements with cannabis companies, including Unrivaled Brands, Inc. and Glass House Brands Inc.
September 07, 2023 | 12:40 pm
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NEGATIVE IMPACT
Glass House Brands Inc. is among the companies that have partnered with suspicious 'labor organizations' in California, which are currently under investigation.
The investigation into the 'labor organizations' could potentially lead to legal issues for Glass House Brands, which could negatively impact its stock price in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Green Thumb Industries, the parent company of Rise Cannabis dispensaries, has been forced to raise wages by 50% following a strike led by Teamsters Local 777. The company will also have to adhere to the terms of the newly ratified collective bargaining agreements.
The wage increase and the terms of the new agreements could lead to increased operating costs for Green Thumb Industries, potentially impacting its profitability in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Unrivaled Brands, Inc. is among the companies that have partnered with suspicious 'labor organizations' in California, which are currently under investigation.
The investigation into the 'labor organizations' could potentially lead to legal issues for Unrivaled Brands, which could negatively impact its stock price in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80