The large corporate Multi-State Operator (MSO) Verano Zen Leaf is suing the NJ Cannabis Regulatory Commission (CRC) and the UFCW Local 360 labor union over Labor Peace Agreements (LPAs).
Verano Zen Leaf Lawsuit
They also named former CRC Chair Dianna Houenou, Commissioner Krista Nash, Acting Executive Director Christopher Riggs, and the UFCW Local 360 labor union.
Notably, the suit was filed July 31st and names Houenou after she stepped down from the position in the spring, and Harris Laufer took over as Chair
The lawsuit was filed in the US federal district court of New Jersey.
Verano hired a lawyer from the firm Littler Mendelson to do so. They are a nationally known anti-labor union with its own properly cited Wikipedia page.
Verano thinks they can benefit from the lawsuit that the MSO Curaleaf has been similarly fighting. So Verano’s lawsuit depends on the MSO Curaleaf’s lawsuit, which has yet to be settled.
The Cannabis Regulatory Authorization and Enforcement Marijuana Modernization Act (CREAMMA) contained the LPA mandate that the CRC enforces, which the MSOs hate.
CREAMMA was passed to implement a market after the NJ cannabis legalization referendum passed with 67 percent of the vote in November 2020.
It went further than the National Labor Relations Act (NLRA), which established American labor law. CREAMMA allows agricultural workers to organize into a formal labor union, while the NLRA does not.
The United Food and Commercial Workers (UFCW) Local 360 labor union has been at the forefront of efforts to legalize cannabis since before the referendum and COVID. So, they advocated for the LPA requirement to be in CREAMMA.
Verano Zen Leaf Labor Issues
“Nobody fought it then. Nobody fought the law then. The minute Trump came in, the minute they started fighting the law,” UFCW Local 360 labor union President Sam Ferraino noted.
“We went around and helped them get their licenses. Part of the deal was we’ll help you get your license in return you hoor and take care of the people, and they’re reneging on their deal,” he explained.
“This thing should have been settled a year ago,” Ferraino said. “They took us to arbitration over whether we could arbitrate.”
“They’re holding captive audience meetings with the employees, and it’s the union’s fault,” he noted.
“If they get rid of the union, they don’t have to pay the retro(active pay),” Ferraino argued.
“It’s like Marie Antoinette: let them eat cake,” he declared. “This is what corporations are doing to the little guy.”
Ferraino said Verano was initially unhappy about being asked to allow a small raise in the wake of inflation.
He believed the company to be doing very well, with millions to spare to slightly improve working conditions there.
“At the end of the day, I’m hoping we’ll be victorious,” Ferraino said.
He noted that 218 people in the union are working for Verano NJ.
“Anybody that fights the LPA is dishonorable,” Ferraino said.
“It’s negotiated between two parties. They differ from to another. They agreed to it,” he explained about the Verano LPAs.
Verano has not publicly commented on the lawsuit.
The CRC does not publicly comment on lawsuits or legislation.
Verano NJ Operations
Verano runs the Zen Leaf dispensary chain in Elizabeth in Union County, Lawrence Township in Mercer County, Neptune in Monmouth County, and Mount Holly in Burlington County.
Along with the Zen Leaf chain, they also own MÜV.
Verano’s website says Zen Leaf operates 50 dispensaries in 13 states, and MÜV has 60 in Florida.
Their product brands include:
- Cabbage Club
- (the) Essence
- Savvy
- Bits
- Encore Edibles
- HYPHEN
- Verano
- On The Rocks
- Holy Union
- Avexia
A case like this is difficult. Because so often Heady NJ sees an MSO that cuts one corner like labor, is likely to cut other corners, which decreases quality in order to make the most money to maximize Return On Investment (ROI).
Notably, the CRC fined Verano more than $20,000 recently for selling underweight products.
They were among the nine MSOs named by the Ohio Attorney General in an antitrust/cartel lawsuit that alleges there is a national conspiracy among the MSOs to artificially keep the price of cannabis high.
