Federal Judge Strikes Down Oregon’s Measure 119, Protecting Cannabis Businesses’ Free Speech in Labor Disputes
U.S. District Judge Michael H. Simon of Oregon has issued a permanent injunction blocking the enforcement of Measure 119. The measure would have required cannabis businesses to establish labor agreements for their workers to obtain or renew their licenses.
Measure 119 Violates Free Speech
The Judge ruled that Measure 119, passed by public vote last year, violates free speech by cannabis business owners.
The lawsuit was filed by a Northeast Portland marijuana retailer, Ascend, and a Southwest Portland manufacturer of concentrates and edibles, Bubble’s Hash, whose license was due for renewal two days after the ruling.
Judge Simon determined that Measure 119 is overridden by the National Labor Relations Act, which permits employers to share their views, arguments, or opinions, as long as they are not threatening or coercive, without being accused of unfair labor practices.
The measure requires cannabis retailers and processors to remain neutral when labor unions communicate with their employees, but it penalizes business owners who do not reach a formal agreement with the union.
Only Two Labor Unions Authorized to Sign Labor Peace Agreements
Ascend argued that in Oregon, only two labor organizations—the Teamsters and UFCW Local 555—are authorized to sign labor peace agreements. According to the company, their efforts to negotiate with these unions were met with unreasonable demands.
Attorneys representing the cannabis businesses noted that while the state has over 200 unions, only those two can enter into the agreements required under the measure.
Ascend had submitted its license renewal application and paid the associated fee to the
Oregon Liquor and Cannabis Commission. However, the agency later informed them that the application was incomplete because it didn’t include a signed labor peace agreement.
The company’s attorneys said Ascend generates more than $500,000 in annual sales.
If its license is not renewed, eight employees could lose their jobs and health coverage.
Bubble’s Hash employs two people. Its license expires tomorrow (22 May). According to court briefs, the business contacted UFCW 555, but had no response.