The Future of Unionization in the Cannabis Industry Grows Uncertain Under the New Administration

Labor unions have been steadily increasing their foothold in the cannabis industry for over a decade. The United Food and Commercial Workers (UFCW) led the charge with its “Cannabis Workers Rising” campaign, followed closely by the Teamsters. As a result, thousands of cannabis workers across the country, from Arizona to Maryland, have successfully unionized. Favorable state laws, such as those in New Jersey, where employers must remain neutral in union organizing efforts, have helped facilitate this growth. Additionally, in recent years, the National Labor Relations Board (NLRB) has played a key role in expanding labor rights, making it significantly easier for cannabis workers to organize.

However, the trajectory of unionization in the cannabis industry has become increasingly uncertain under the new administration. The NLRB’s stance traditionally shifts depending on which party controls the White House, swinging between pro-union policies under Democratic leadership and more employer-friendly policies under Republican leadership. This time, the shift has been particularly abrupt and disruptive.

Shortly after his inauguration, President Trump took the unprecedented step of terminating Gwynne Wilcox, one of the two Democratic members of the NLRB. Wilcox has since filed a lawsuit against the administration, arguing that her dismissal violates the National Labor Relations Act (NLRA), which only allows for removal of Board members “upon notice and hearing, for neglect of duty or malfeasance in office, but for no other cause.”

Adding further complexity, an ongoing legal challenge from SpaceX, which questions the constitutionality of the NLRA’s restrictions on presidential authority to remove Board members, has reached the appellate level. Legal experts anticipate that the Supreme Court may ultimately weigh in on the issue, with potentially far-reaching consequences for labor relations in the cannabis industry and beyond.

Meanwhile, the President’s actions have left the NLRB without a quorum, crippling its ability to decide unfair labor practice cases and process union petitions, two critical functions that directly impact cannabis workers’ ability to organize. Additionally, the President replaced the NLRB’s General Counsel with an Acting General Counsel who has wasted no time in rescinding key pro-labor guidance from the previous administration, signaling a shift in priorities that favors employers.

With no immediate plans to appoint new Board members, the NLRB is effectively stalled, leaving cannabis workers and unions in a state of uncertainty. What was once a rapidly expanding labor movement in the industry is now at risk of stagnation, if not outright regression. Unless the situation changes, the path toward increased unionization in cannabis will remain as hazy as ever.