Marijuana Business Daily

California cannabis companies tied to fake union could lose their licenses

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(This story was updated after the state Department of Cannabis Control said at least 72 companies had signed labor peace agreements with ProTech.)

More than 70 California cannabis businesses that signed required agreements with a labor union now deemed illegitimate – including collapsed distribution giant Herbl – are at risk of losing their licenses, state regulators said Monday.

California law requires marijuana businesses to sign a labor peace agreement with a “bona fide” labor organization before they are issued a state license.

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But in an apparent effort to flout worker-friendly marijuana legalization laws and benefit businesses seeking labor cost savings, cannabis businesses across the country are signing these agreements with “labor organizations” that have few or no members and no intent to organize workers, critics charge.

On July 6, California’s Agricultural Labor Relations Board (ALRB) ruled that an outfit calling itself the Professional Technical Union

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