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Dubbed “the Amazon of cannabis,” the Eaze weed delivery company has grabbed headlines due to a looming strike threat from unionized workers who argue the company is not treating them fairly.
The unionized employees are considering a strike during the so-called “Pot Holiday,” a key sales day and a symbolic date for both the industry and the cannabis community as a whole. With the strategically chosen date of action, 4/20, drawing near, cannabis industry workers represented by the United Food and Commercial Workers Union (UFCW) have been called back to the negotiation table with management, as confirmed by the Union to Benzinga.
Pay Your Fair Share
Eaze, likely the largest of its kind, operates as a weed delivery marketplace, offering on-demand delivery to adults across California and Michigan. Since its founding in 2014, it has expanded to become a vertically integrated system selling flowers, pre-rolls, edibles, concentrates, drops, wellness products, capsules, and accessories, providing door-to-door services.
Charges have been filed against Eaze and its plant-touching subsidiary, Stachs, with the National Labor Relations Board. The complaints concern the company’s changes to drivers’ mileage reimbursement and its failure to provide legally required information.
This conflict has been ongoing for months, with negotiations starting in August 2023 and pausing on March 19, 2024. Before this halt, Eaze/Stachs’ final offer did not meet the workers’ demands, which included increased mileage reimbursement rates, higher hourly wages, and a guarantee of a minimum number of work hours.
Biggest Cannabis Delivery Service Faces Challenges
According to the union, the negotiation party consists of over a dozen Eaze/Stachs employees, representing more than five hundred workers across eleven California delivery depots, including six in Southern California and five in Northern California. The union has a presence in both Northern and Southern California, including in Van Nuys, La Brea, Gardena, Silverlake, among other locations. Given these numbers, a strike during the Pot Holiday could significantly impact Eaze’s finances.
The company’s recent path has been fraught with other difficulties as well. Former CEO James Patterson pleaded guilty to one count of conspiracy to commit bank fraud amounting to $100 million in 2021. Also, Eaze is currently being sued by merged associate Green Dragon. The lawsuit alleges that Eaze intentionally misled investors about its financial health and violated California law by “renting” multiple cannabis licenses to conduct its business. Also, recently, Eaze drivers in Sacramento became members of Teamsters, meaning that the company faces unionized action on various fronts.
As a private company, the impact of these actions on its balance sheet is not public knowledge, but management claims its current situation limits its ability to meet the union’s demands.
The outcomes of the negotiations have yet to be made public.
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