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California’s pot industry has a ‘fake union’ problem

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California’s pot industry has a ‘fake union’ problem


Cannabis farmworkers surveys marijuana plants at Glass House Farms in Camarillo, Calif., on Feb. 9, 2023.

The Washington Post/The Washington Post via Getty Im

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It looks like it’s time to add “fake unions” to the long list of problems facing California’s multibillion-dollar legal pot industry.

Some of the biggest legal cannabis companies in California appear to be violating state law by working with organizations that claim to be labor groups but are accused of not actually attempting to fight for workers’ rights.

California law requires any pot company with more than 20 employees to sign a labor peace agreement with a “bona fide” labor union. The law is intended to provide workers with easier access to labor organizations that can petition the company for better wages and working conditions. 

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However, at least three of the biggest pot companies in the state have been caught working with a “fake union” called Professional Technical Union Local 33, or Pro-Tech, according to MJBizDaily. Last month, the California Agricultural Labor Relations Board determined that Pro-Tech was “not a bona fide labor organization” because they made no discernible effort to organize or represent any employees in the cannabis industry and even failed to have a physical presence in California.

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The board ultimately determined that Pro-Tech and the companies it contracted with had entered into a “sham relationship” in order to skirt the state law.

The list of companies working with Pro-Tech includes: Nabis, one of the biggest distribution companies in the state; Herbl, a major distributor that recently went out of business; and Glass House Brands, one of the biggest pot farming companies in the state, according to MJBizDaily.

The complaint against Pro-Tech was filed by the International Brotherhood of the Teamsters, a union that represents more than a million workers in North America. Peter Finn, a vice president at the Teamsters, told SFGATE in a phone interview that these sham unions hurt the rights of California’s cannabis industry workers.

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Cannabis farmworkers de-stem cannabis product prior to packaging at Glass House Farms in Camarillo, Calif., on Feb. 9, 2023.

Cannabis farmworkers de-stem cannabis product prior to packaging at Glass House Farms in Camarillo, Calif., on Feb. 9, 2023.

The Washington Post/The Washington Post via Getty Im

“This is not just about a labor peace agreement, this is about a worker’s ability to form a union to improve their wages, benefits and working conditions,” Finn said. “These fake unions and employers that engage with them are undermining the law and the will of the people.”

Last month, the Teamsters filed a second complaint, alleging that a union called the National Agricultural Workers Union was also “not a bona fide labor organization.” According to the Teamsters, the National Agricultural Workers Union has agreements with Caliva, a cannabis company owned by The Parent Company since 2021, an SEC filing shows. Rapper Jay-Z is an investor in The Parent Company.

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Anthony P. Raimondo, an attorney representing the National Agricultural Workers Union, said the Teamsters’ allegations were “flatly untrue” and described the group as a “startup union” with no paid staff that has slowly been working to organize workers.

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“A lot of what happened with this organization became stalled during COVID because there were limited opportunities to organize and do face-to-face activity,” Raimondo said in a phone interview with SFGATE.

Companies have 180 days to enter into a new labor peace agreement if they are found to be working with an entity that is not a bona fide labor organization, Department of Cannabis Control spokesperson David Hafner told SFGATE.

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So far, most of the implicated companies are staying silent. Nabis declined to comment when reached by SFGATE, and both Caliva and The Parent Company did not return requests for comment.

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A spokesperson for Glass House Brands said in an emailed statement to SFGATE that the company is working to find a replacement union to sign an agreement with. “We are in the process of complying with this change of status, and expect to make the adjustment within the time frame requested by the State,” the statement said.

Labor peace agreements are contracts between a company and a labor organization where the union agrees not to picket or boycott the business and the business agrees not to disrupt efforts by the union to organize workers and petition for better working conditions and pay. While they’re not specific to the cannabis industry, pot companies increasingly need to strike these deals as more states with legal weed mandate them thanks to heavy labor lobbying.

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Cannabis farmworkers de-stem cannabis product prior to packaging at Glass House Farms in Camarillo, Calif., on Feb. 9, 2023.

Cannabis farmworkers de-stem cannabis product prior to packaging at Glass House Farms in Camarillo, Calif., on Feb. 9, 2023.

The Washington Post/The Washington Post via Getty Im

Beginning in July 2024, the requirement for a labor peace agreement will apply to all companies with 10 or more employees, down from 20.

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Hafner said in an email to SFGATE that the California cannabis regulator does not actively investigate unions that enter into labor peace agreements with pot companies, instead relying on a “complaint-driven” system.

“DCC is actively working on efforts to increase transparency into licensees’ labor peace agreements, so that we can strengthen labor organizations’ and workers’ ability to file effective complaints,” Hafner said.

California has the largest number of legal cannabis industry workers in America, according to a 2022 report, with more than 83,000 people employed in the industry in 2021.

There are likely other cannabis companies that have signed agreements with Pro-Tech. An attorney for the organization told the state’s labor relations board that they had entered into 64 labor agreements with businesses in California’s cannabis industry.

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California

Magnitude 3.5 earthquake recorded in Malibu, California Friday afternoon

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Magnitude 3.5 earthquake recorded in Malibu, California Friday afternoon


An earthquake shook along the Southern California coast Friday afternoon.

The earthquake reportedly occurred in Malibu, west of Los Angeles, at 2:15 p.m. local time, according to the U.S. Geological Survey.

The temblor, which was recorded at a depth of nearly 6 miles, measured a preliminary magnitude of 3.5.

It was not immediately clear if there was any damage.

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California bomb cyclone brings record rain, major mudslide risk

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California bomb cyclone brings record rain, major mudslide risk


An atmospheric river dumping rain across Northern California and several feet of snow in the Sierras was making its way across the state Friday, bringing flooding and threatening mudslides along with it.

The storm, the first big one of the season, moved over California as a bomb cyclone, a description of how it rapidly intensified before making its way onshore.

On Thursday, rain poured across the northern edge of the state, slowly moving south. It rained 3.66 inches in Ukiah on Thursday, breaking the record for the city set in 1977 by a half-inch. Santa Rosa Airport saw 4.93 inches of rain on Thursday, shattering the daily record set in 2001 of 0.93 inches.

More rain is due Friday.

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Cars are covered in snow during a storm in Soda Springs.

(Brooke Hess-Homeier / Associated Press)

“Prolonged rainfall will result in an increased risk of flooding, an increased risk of landslides, and downed trees and power lines across the North Bay,” the National Weather Service’s Bay Area office wrote in a Friday morning forecast.

After its initial peak, the system is expected to linger into the weekend, with a second wave of rainfall extending farther south across most of the San Francisco Bay Area, down into the Central Coast and possibly reaching parts of Southern California.

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On Saturday, Los Angeles and Ventura counties could see anywhere from a tenth to a third of an inch of rain. San Luis Obispo and Santa Barbara counties could see up to an inch in some areas.

A second round of rain expected to begin Sunday could be “a little stronger than the first but still likely in the ‘beneficial rain’ category,” the National Weather Service said in its latest L.A. forecast.

Chances are low of flooding or any other significant issues in Southern California, forecasters said, though roads could be slick and snarl traffic.

Staff writer Grace Toohey contributed to this report.

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Storm dumps record rain and heavy snow on Northern California

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Storm dumps record rain and heavy snow on Northern California


A major storm moving through Northern California on Thursday dropped heavy snow and record rain, flooding some areas, after killing two people and knocking out power to hundreds of thousands in the Pacific Northwest.

Forecasters warned that the risk of flash flooding and rockslides would continue, and scores of flights were canceled at San Francisco’s airport.

In Washington, nearly 223,000 people — mostly in the Seattle area — remained without power as crews worked to clear streets of electrical lines, fallen branches and debris. Utility officials said the outages, which began Tuesday, could last into Saturday.

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Meanwhile on the East Coast, where rare wildfires have raged, New York and New Jersey welcomed much-needed rain that could ease the fire danger for the rest of the year.

The National Weather Service extended a flood watch into Saturday for areas north of San Francisco as the region was inundated by this season’s strongest atmospheric river — a long plume of moisture that forms over an ocean and flows through the sky over land.

The system roared ashore Tuesday as a ” bomb cyclone,” which occurs when a cyclone intensifies rapidly. It unleashed fierce winds that toppled trees onto roads, vehicles and homes, killing at least two people in the Washington cities of Lynnwood and Bellevue.

Communities in Washington opened warming centers offering free internet and device charging. Some medical clinics closed because of power outages.

“I’ve been here since the mid-’80s. I haven’t seen anything like this,” said Trish Bloor, who serves on the city of Issaquah’s Human Resources Commission, as she surveyed damaged homes.

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Up to 41 centimeters of rain was forecast in southwestern Oregon and California’s northern counties through Friday.

Santa Rosa saw 16.5 centimeters of rain in the last 24 hours, marking the wettest day on record since 1998, according to Joe Wegman, a meteorologist with the National Weather Service.

The Sonoma County Airport, in the wine country north of San Francisco, got more than 28 centimeters within the last 48 hours. The Ukiah Municipal Airport recorded about 7.6 centimeters Wednesday, and the unincorporated town of Venado had about 32.3 centimeters in 48 hours.

A car is left stranded on a flooded road during a storm Nov. 21, 2024, in Windsor, Calif.

In nearby Forestville, one person was hurt when a tree fell on a house. Small landslides were reported across the North Bay, including one on State Route 281 on Wednesday that caused a car crash, according to Marc Chenard, a weather service meteorologist.

Daniela Alvarado said calls to her and her father’s Sonoma County-based tree business have nearly tripled in the last few days, with people reaching out about trimming or removing trees.

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“We feel sad, scared, but also ready for action,” Alvarado said.

Rain slowed somewhat, but “persistent heavy rain will enter the picture again by Friday morning,” the weather service’s San Francisco office said on the social platform X. “We are not done!”

Dangerous flash flooding, rockslides and debris flows were possible, especially where hillsides were loosened by recent wildfires, officials warned. Scott Rowe, a hydrologist with the weather service in Sacramento, said that so far the ground has been able to absorb the rain in Butte and Tehama counties, where the Park Fire burned this summer.

“It’s not necessarily how much rain falls; it’s how fast the rain falls,” Rowe said.

Santa Rosa Division Chief Fire Marshal Paul Lowenthal said 100 vehicles were stuck for hours in the parking lot of a hotel and medical center after being swamped by thigh-high waters from a flooded creek.

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A winter storm watch was in place for the northern Sierra Nevada above 1,070 meters, with 38 centimeters of snow possible over two days. Wind gusts could top 121 kph in mountain areas, forecasters said.

Sugar Bowl Resort, north of Lake Tahoe near Donner Summit, picked up 30 centimeters of snow overnight, marketing manager Maggie Eshbaugh said Thursday. She said the resort will welcome skiers and boarders on Friday, the earliest opening date in 20 years, “and then we’re going to get another whopping of another foot or so on Saturday, so this is fantastic.”

Another popular resort, Palisades Tahoe, said it is also opening Friday, five days ahead of schedule.

The storm already dumped more than 30 centimeters of snow along the Cascades in Oregon by Wednesday night, according to the weather service.

More than a dozen schools closed in the Seattle area Wednesday, and some opted to extend the closures through Thursday.

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Covington Medical Center southeast of Seattle postponed elective surgeries and diverted ambulances after losing power and having to rely on generators Tuesday night into Wednesday, according to Scott Thompson, spokesperson for MultiCare Health System. Nearby, MultiCare clinics closed Wednesday and Thursday after losing power.

In Enumclaw, also southeast of Seattle, residents were cleaning up after their town clocked the highest winds in the state Tuesday night: 119 kph.

Ben Gibbard, lead singer of the indie rock bands Death Cab for Cutie and Postal Service, drove from his Seattle neighborhood Thursday morning to the woods of Tiger Mountain for his regular weekday run, but trees were blocking the trail.

A downed tree rests on a property during a storm, Nov. 21, 2024, in Forestville, Calif.

A downed tree rests on a property during a storm, Nov. 21, 2024, in Forestville, Calif.

“We didn’t get hit that hard in the city,” he said. “I just didn’t assume it would be this kind of situation out here. Obviously you feel the most for people who had their homes partially destroyed by this.”

Washington Gov. Jay Inslee thanked utility crews for toiling around the clock. It could take weeks to assess the scope of the damage and put a dollar figure on it, he said in a statement, and after that “we’ll know whether we will be able to seek federal assistance.”

In California, there were reports of nearly 13,000 power outages.

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Authorities limited vehicle traffic on part of northbound Interstate 5 between Redding and Yreka due to snow, according to California’s Department of Transportation. Officials also shut down a 3.2-kilometer stretch of the scenic Avenue of the Giants, named for its towering coast redwoods, due to flooding.

About 550 flights were delayed and dozens were canceled Thursday at San Francisco International Airport, according to tracking service FlightAware.

Parched areas of the Northeast got a much-needed shot of precipitation, providing a bit of respite in a region plagued by wildfires and dwindling water supplies. More than 5 centimeters was expected by Saturday morning north of New York City, with snow mixed in at higher elevations.

Weather service meteorologist Brian Ciemnecki in New York City, which this week saw its first drought warning in 22 years, said “any rainfall is going to be significant” but the storm will not be enough to end the drought.



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