Labor agreements are sweeping through medical cannabis pharmacy locations across Utah, driving significant changes in the industry.
Utah medical Cannabis pharmacy employees are electing to unionize and enter into collective bargaining agreements with union chapters, beginning with several recent moves in the state last fall. In a short time period spanning between October and November 2023, Utah’s first two medical Cannabis pharmacy employees held elections, voted, and opted to unionize, joining the United Food & Workers Union (UFCW) Local 99 chapter.
Utah’s pioneering medical cannabis companies to unionize—Dragonfly Wellness in Salt Lake City and WholesomeCo in West Bountiful—may pave the way for a wave of similar initiatives in the near future. With numerous pharmacies and cannabis-related businesses currently exploring their options, the landscape of unionization in the state’s industry is poised for further expansion.
Apart from smaller, lesser-known factions, there are two major unions that have been actively organizing workers in the Cannabis sector: The UFCW, the largest labor union in the sector with many branches that have organized tens of thousands of pharmacy/retail workers, growers, and delivery drivers nationwide. The other is The International Brotherhood of Teamsters, which has recruited Cannabis workers in states such as California and Illinois. Both recruit workers via email campaigns, online articles, and brochures.
The old way of determining wages and benefits for pharmacy agents, some of whom believe they are underpaid and underrepresented, could become a vestige of the past if labor unions have their way and recruit more.
What are Labor Unions?
Labor unions describe themselves as a solution to gaps in safety at the workplace, as well as a way to challenge unfair benefits and wages. They claim that after Cannabis businesses unionize, cannabis workers typically end up negotiating annual raises, increase health insurance subsidies, and have higher-than-average wages for their respective roles.
Critics of labor unions, on the other hand, argue that they instead make workplaces less competitive due to rising labor costs and make it nearly impossible for employers to fire employees, even if they are underperforming. Some employers claim that these rising costs end up simply falling on the consumer at the counter — i.e. more dollars per gram. This could lead to sticker shock at the counter, for already-high prices.
Workers, ranging from longshoremen stationed at ports to agricultural workers and employees at casinos, enter into labor agreements. These same concepts also take root in the medical Cannabis industry in Utah and other states.
The UFCW represents the interests of Cannabis workers — from cultivation to manufacturing to dispensaries — as well as many other sectors. Each time a business elects to unionize, that vote applies to each specific location only. So if a medical Cannabis pharmacy unionizes, the other pharmacy, cultivation, and processing branches act separately.
For several years, dispensaries in several other states paved the way. For instance in 2018, Washington state-based Have A Heart dispensary landed a collective bargaining agreement with the UFCW Local 21, and they signed a five-year contract with UFCW Local 21 two years later. UFCW Local 21 is the largest private-sector union in the state of Washington.
Since unions are often embedded into state and local Cannabis laws, lawmakers in several states and local jurisdictions successfully required businesses to sign so-called labor peace agreements (LPAs), empowering unions with the right to talk with employees about joining a union without any interference. States with LPA-related requirements include California, New Jersey, New York, Rhode Island, and Virginia. For instance on October 12, 2019, California Governor Gavin Newsom signed a bill requiring dispensaries in the state to enter into LPAs once they have 20 or more employees.
Utah is a “right to work” state, so employers in the state cannot deny a prospective employee a job due to their affiliation with a labor union.
Two Pharmacies Join UFCW Local 99
The UFCW Local 99 chapter’s territory covers Utah, Arizona, and New Mexico. Utah followed in the footsteps of neighboring states with cannabis programs. Workers at Curaleaf Midtown in Phoenix, Arizona voted in favor of unionizing on June 30, 2022. But after some setback in inking the actual contract, there were delays and workers there went on strike and picketed outside of the dispensary on Sept. 15, 2023.
Utah followed suit, and two pharmacies elected to unionize so far at the time of writing.
Vertically-integrated Dragonfly Wellness became Utah’s first medical Cannabis pharmacy to operate in March 2020, and also became the first to elect to unionize. On October 5, 2023, Dragonfly Wellness, at its downtown Salt Lake City location, announced that its associates chose to exercise their right to unionize. It was followed by another within days. The election only applies to Dragonfly’s 4,200 square-foot Salt Lake City pharmacy location.
“In September 2023, the dedicated agents at Dragonfly Wellness in Salt Lake City made their voices heard by voting to join the UFCW Local 99,” Dragonfly Wellness Chief Growth Officer Lien Nguyen told Utah Leaf. “We’re thrilled that our employees achieved the outcome they desired, and we eagerly anticipate collaborating with union representatives further to fulfill our shared employee goals moving forward.” Beyond Dragonfly, Lien also serves as director of personnel at Sapa Investment Group.
At Dragonfly Wellness, after voting 19-4 at an election held on September 27, 2023, workers chose to unionize. Founded in 2019, Dragonfly Wellness is minority- and female-owned and operated, and was the first licensed medical Cannabis pharmacy to open. One of the first things on the agenda at a recent UFCW Local 99 meeting was to ensure that Dragonfly Wellness pharmacy employees could collect tips. Leaders at Dragonfly Wellness accepted the vote to unionize, while acknowledging differences in the best approaches to employment protocol.
“While our preference has always been to engage directly with our valued employees, we
recognize that this marks an exciting milestone for the Utah cannabis market,” Michelle Church, Dragonfly’s Director of Marketing & Communications said in the announcement. “We respect our employees’ choice to pursue unionization and firmly believe that our continued efforts to provide competitive compensation, comprehensive benefits, and a supportive work environment
exemplify our commitment to their welfare. In recent years, Dragonfly Wellness has consistently demonstrated its commitment to providing the highest starting salary and the most extensive benefits package in the state to its employees. Our associates earn $17-$22 per hour.”
Dragonfly Wellness already offered its employees competitive benefits and wages relative to what other pharmacies were offering in the state.
In the announcement, Church also explained that Dragonfly Wellness already offers comprehensive medical benefits to all of their associates, and they understand the importance of accessible healthcare — particularly in the cannabis industry. “As a token of our appreciation and recognition of the unique nature of our industry, Dragonfly Wellness extends a monthly medical cannabis stipend to each of our wellness associates ranging from $150-$300/month,” Church added. “This benefit not only enhances the well-being of our team members but also underscores our commitment to the core values that drive our business.”
Dragonfly employees told local media that the company explored union-busting measures initially but ultimately accepted the vote to join UFCW Local 99.
Meanwhile, WholesomeCo Pharmacy employees filed for an election to unionize around the same time period. On November 9, 2023, workers at Wholesome Co Pharmacy voted 21-1 in favor of joining the United Food and Commercial Workers Union (UFCW) Local 99, becoming only the second cannabis pharmacy in Utah to form a union. The National Labor Relations Board (NLRB) vote arrived less than six weeks after workers at Dragonfly Wellness became the first in the state to unionize.
The initiative encompasses various roles within WholesomeCo Pharmacy, ranging from agents handling retail displays to those involved in delivery and inventory management. This includes WholesomeCo Pharmacy agents, retail display agents, delivery fulfillment agents, retail fulfillment agents, inventory compliance agents, and demand inventory agents.
“Pharmacy employees are the backbone of Utah’s burgeoning medicinal Cannabis industry. Without their extensive knowledge of products, passion for helping others, and ability to build trusting relationships with patients, the prosperity of companies like WholesomeCo. and Dragonfly Wellness would not be possible,” Jim McLaughlin, President of UFCW Local 99 told Salt Baked City. “When Utah’s Cannabis pharmacies are seeing record profits, workers deserve to receive their fair share. Instead, many are forced to take part-time jobs to make ends meet. With a union contract, Utah’s Cannabis workers can secure a clear career path and develop strong safety protocols which will help improve the industry not just for employees, but for all Utahns.”
Employees at WholesomeCo Pharmacy anticipate that additional cannabis companies in Utah will opt to join unions, following their pioneering example. However, many of these individuals declined to provide on-the-record statements regarding the specifics of recent discussions and meetings.
“We are excited to join UFCW Local 99, and we thank the company for respecting our right to organize,” Dennis Magana, a WholesomeCo pharmacy agent said in the announcement. “We look forward to negotiating in good faith and hope that our actions inspire workers across the industry to join us in building a better future.”
In Conclusion
Cannabis workers are witnessing the unfolding of labor unions in other states and the benefits they offer. Various events, such as the tragic case of a 27-year-old woman who died while working at a Massachusetts cannabis processing facility in November 2023 despite wearing an N95 mask, have spurred workers in states to opt for unionization. Dr. Virginia Weaver of the U.S. Department of Labor attributed the incident to inefficient dust collection gear at the site, highlighting the critical need for enhanced workplace safety measures.
Representatives from UFCW Local 99 and Teamsters emphasize the vulnerability of cannabis workers to issues like wage theft, underscoring the necessity for collective bargaining to protect workers’ rights. Regardless of individual opinions within Utah’s medical cannabis industry, labor unions are undeniably gaining traction and exerting more influence over worker rights across various sectors, including cannabis.
