(2) To each local jurisdiction in a cannabis licensing agreement with the Agency up to the percentage of tax revenue charged less administrative costs by each local jurisdiction under this Section. Some lawyers and jurists have suggested that challenging a social peace agreement based on “pre-emption” would have a high chance of success. This doctrine prevents a state from regulating an area that has been fully regulated by the federal government. The first thing we need to understand is what we mean by an industrial peace agreement. It is a private contract between an employer and a union that requires both parties to waive certain rights under federal labour law. While these agreements vary considerably depending on the circumstances, common conditions include that the employer must remain neutral with respect to the formation of a union, that independent union organizers have access to the employer`s facilities, that workers` contact information is provided, and that the union is prohibited from engaging in economic activities such as pickets and strikes. participate. (c) (1) Under a cannabis licence agreement, a local jurisdiction shall use the excise tax revenues allocated to it under section 34011.5 of the Taxes and Duties Act as follows: Effective January 1, 2020, Parliament has established stricter procedures and timelines to ensure compliance. According to Assembly Bill 1291, candidates with 20 or more employees must make a notarized declaration that they will enter into an industrial peace agreement or prove that they have already concluded an industrial peace agreement.
In addition, applicants with fewer than 20 employees must now provide a notarized statement at the time of their application indicating that they will do so within 60 days of hiring their 20th employee. AB 1291 also adds administrative powers by authorizing the Bureau of Cannabis Control to permanently suspend or revoke licenses if the requirement is not met. The impact of the MAUCRSA requirement of the Labor Peace Agreement and the subsequent adoption of AB 1291 on the California cannabis industry cannot be overstated. Although these measures do not guarantee trade union organisation, they significantly increase the likelihood. Moreover, the agreement cannot dictate how workers choose the union. This is a significant departure from most industrial peace agreements, which provide for specific recognition procedures such as a secret ballot or card check. The U.S. Supreme Court decision in Chamber of Commerce v.
Brown, 554 U.S. 60 (2008) is also instructive. Brown was concerned about the California Assembly Bill of 1889 (“AB 1889”), which prohibited certain private employers from using state funds to “support, promote, or deter unionization.” (Id. at 63 [cites Cal. Govt. Code §§ 16645.1–16645.7].) The court ruled that AB 1889 was unconstitutional. As the Court explained, the current text of sections 7 and 8 of the NLRA are amendments made to the NLRA in 1947 under the Labor Management Relations Act, also known as the Taft Harley Act, to establish earlier precedents of the NLRB. The NLRA has been amended in several key respects. First, she stressed that workers have “the right to abstain from some or all” trade union activities. (29 U.S.C§ 157.) Second, article 8 (b) has been added, which prohibits unfair labour practices by trade unions.
(29 U.S.C§ 158(b).) Third, he added paragraph 8(c), which protects the speech of unions and employers from regulation by the NLRB. (29 U.S.C§ 158(c).) Specifically, Article 8(c) provides: As legalized marijuana spreads across the United States, the laws of some states have begun to strengthen the power of unions in the cannabis industry. These laws often require a company to reach a “social peace agreement” or take a similar stance toward unions in exchange for obtaining a cannabis license from the state. Under a social peace agreement, a company commits with a union not to interfere in its organizational efforts. The union, for its part, undertakes not to interfere in the commercial activities of the company. Industrial peace agreement laws are not limited to the cannabis industry. They already play a role in the hotel industry in some states. However, other states have not only refrained from enacting these laws, but have also prevented local governments from enacting them. An example of a social peace agreement is a recent provision made in California. A cannabis company must allow the union to communicate with its workers in order to organize them and represent their interests.
A company must grant union organizers access to its facilities. In return, the union must refrain from work stoppages, pickets, boycotts and other traditional tactics used to pressure companies. Licensees may opt for a more comprehensive agreement, which should be developed in consultation with a lawyer. Therefore, we recommend that you contact an experienced employment lawyer before signing or accepting the terms of an LPA. First, an AHRL is a private contract between an employer and a union in which both parties agree to waive certain rights under federal labour laws. Several unions are currently active in the cannabis industry, so a number of organizations can turn to businesses. However, licensees only need to enter into a PLA with one union and should not feel compelled to negotiate with others after entering into an APL. Because of this reality, you need to be prepared for increased demands on labor costs, time, and costs of managing the collective bargaining relationship, and realize that you will have less flexibility in terms of operations and employee relations. Cannabis employers should consult with an employment consultant to conduct due diligence with local unions you are considering, help you negotiate strict work peace terms, and train key supervisors on labour law compliance. On the 12th. In October 2019, Governor Newsom signed Assembly Bill 1291 (“AB 1291”) which came into effect, requiring the Company to sign a so-called “Industrial Peace Agreement” with a union or risk losing its cannabis license; This will strengthen the already union-friendly national cannabis law. AB 1291 has been supported and supported by various unions, including the United Food and Commercial Workers Western States Council, a section of 170,000 members representing thousands of cannabis workers.
This bill, along with other California and local laws, signal a growing insistence by state and local regulators that employers operating in California accept union-friendly demands. However, many of these new pro-union laws, including AB 1291, may be unconstitutional. Despite this option, most cannabis companies have yet to consider challenging industrial peace agreement laws in court. A business may be better served by obtaining a license and starting operations than by a long and costly court battle. However, if these laws become stricter or more widespread, industry organizations and stakeholders may consider litigation. You should also carefully avoid wording that extends the scope of the agreement beyond the licensee or extends its scope to “successor companies”. .