Budding union efforts in Michigan’s Cannabis Industry
Marijuana licenses could be in jeopardy if bills go unpaid
Although Michigan’s marijuana market surpassed $2 billion in profits last year, price volatility has continued to loom like a dark cloud.
The recreational flower price per ounce was $90.64 in May, slowly inching up month-over-month but far from the $221.21 price point just two years ago.
This is one of many contributing factors leaving growers and processors shorted by retailers who are slow to fulfill their end of the deal.
The multi-billion-dollar industry is reckoning with how to stabilize a supply chain leaning on credit by introducing new rules. The Cannabis Regulatory Agency has proposed denying a license or license renewal based on civil judgments or court orders resulting from unpaid debt.
This comes on the heels of court filings exposing millions in debt from major names in the industry, like Skymint’s $127 million default in March.
Skymint’s parent company, Green Peak Industries, is one of eight licensees that have fallen into receivership since 2019.
Cannabis businesses cannot claim bankruptcy because they are not federally recognized. Instead they are court ordered into receiverships with their lenders, meaning the creditor gains management of the company’s finances to recoup debt.
This financial instability is making business insiders weary and looking for solid ground for this sprouting industry. The CRA is open to feedback on the proposed rule tying debt to license eligibility.
Budding union efforts in Michigan’s cannabis industry
Unionization among marijuana retail workers is gaining traction despite pushback from larger companies.
The industry’s financial instability and its interest in unionization go “hand-in-hand,” said John Cakmakci, president of United Food & Commercial Workers Union Local 951.
With more than 35,000 cannabis jobs, Michigan is second in the nation behind California’s 85,000 jobs. So far, only a handful of retail employees have been able to organize with United Food & Commercial Workers labor union.
Cannabis workers have been contacting the labor union since the inception of Michigan’s industry, Cakmakci said. But less than 10 stores in Michigan have actually organized. The first was in Manistee in March 2022.
Alleged union busting efforts have put up roadblocks for workers interested in organizing. The industry has a high turnover rate and Cakmakci said workers often leave before a union vote ever comes to fruition.
Cakmakci also recognizes that the number of calls from workers was outstripping union resources as they were focused on repealing Right to Work legislation. He expects to make gains in the cannabis industry now that UFCW can re-prioritize its efforts, he said.
Read more about how workers and business see unions fitting into the cannabis industry: Unions find foothold in marijuana industry, but growth is slow
Petition to stop Marshall mega site falls short on signatures
The mega site in Marshall, a farm town at the intersection of I-69 and I-94, will continue to move forward with plans to build a Ford battery plant despite a vocal opposition.
A petition against Ford’s $3.5 billion BlueOval Battery Park battery plant in Marshall failed because it didn’t get enough valid signatures, said Marshall City Clerk Michelle Eubanks.
The petition was rejected after the Committee for Marshall – Not the Megasite submitted more than 800 signatures as part of a referendum but a legal review found only 136 signatures were valid due to circulation rules. The opposition group needed to collection a minimum of 578 valid signatures.
The city clerk wrote the petition also failed because the ordinance it targeted was “not subject to a referendum because it included an appropriation of money.”
Ford announced plans in February to build a sprawling electric vehicle battery plant on a mega site in Marshall. This was met with pushback from community members concerned a large industrial park will scar the landscape and destroy farmland. Hundreds lined up to speak against the plant at a May 1 meeting that stretched past midnight.
Michigan has awarded the project $1.7 billion of incentives including a 15-year Renaissance Zone tax break valued at $774 million, $630 million from a supplemental budget bill for site prep work, a $120 million grant for land acquisition plus a $210 million grant given to Ford.
