Cannabis industry and “labor peace”

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Cannabis has emerged from the shadows of Reefer Madness’s archaic propaganda over the years as a substantial and legitimate multibillion-dollar industry.

The transition from an underground market to a compatible business without a prescription was a hard-won battle for leaders in this field. It was also costly from the point of view of companies that could not follow the rules or survive the local bans and obstacles that were imposed on them. Small operations among friends and family members have given way to more formal business arrangements.

The Human Resources Management (LRM), based in Sonoma County, California, is at the forefront of the movement. LRM Senior Labor Consultant Dan Rush explains: “LRM is a leader in the topics of labor peace, compliance, training, certification, dignity and the apprenticeship program in the cannabis industry.”

The September conference addresses the issues

The group is hosting a free event, Sept. 23 in Santa Rosa, to shed light on the complex relationships in the industry.

  • Bill 141 of the California Assembly was approved by Governor Newsom on July 12, 2021. AB 141 established the Department of Cannabis Control (DCC). Prior to the implementation of the recently adopted bill, there were three different surveillance programs outlined on the Cannabis Control Department’s website as follows:
  • Cannabis Control Bureau, Consumer Affairs Department
  • Produced cannabis safety branch at the Ministry of Public Health
  • Licensing for Cal Cannabis Growing in the Ministry of Food and Agriculture Optimizing a complex regulatory, inspection and licensing system in a one-stop shop by pooling the resources of the three state-sponsored programs benefits cannabis operators in all 58 County of California. The potential reduction of excessive permit fees and the long waiting time for approval are key objectives.

Rush says, “We hope the state can redefine its tax levels and hopefully this will reduce the cost of doing business,” which is vital because the profit margin in the cannabis industry is small, taking taking into account the related fees, permits, materials, equipment, location, distribution, branding, marketing and staff in the equation.

Transition from temporary to permanent licenses

The Cannabis Control Department will essentially “ease the licensing of delays and transfer more than 8,000 marijuana companies, representing approximately 83 percent of the state’s cannabis business, from temporary to permanent permits,” according to the cannabis broadcasting station.

It reinforces the fact that the industry is a viable stream of tax revenue for the government, and offers a valuable return on investment for investors. Employers and employees who make a living in the cannabis industry benefit in the same way. Understanding the timetable for legalization is crucial. California’s 215 proposal, known as the Medical Marijuana Initiative, was approved by voters in 1996.

The Adult Marijuana Control, Regulation and Taxation Act 2016 (AUMA) ushered in the era of legal entertainment sales and consumption. Gone are the days of paranoia and persecution for daring to smoke herbs. The Medical and Adult Cannabis Regulation and Safety Act (MAUCRSA) was signed into California law on June 27, 2017. These laws are historically related to the development and strengthening of the current climate in the cannabis industry.

The initiative of the voters has been changed by the legislature

The participation of the labor movement in the cannabis industry is legally authorized through the Labor Peace Agreement (LPA), in which businesses with 20 or more employees without supervision are obliged to enter into a contract with a labor organization. “The labor movement is primarily responsible for the fact that we have a regulatory agency and legal, recreational and medical cannabis in California,” Rush said. Furthermore, “I don’t think the industry should look at the labor movement as adversaries, but rather as partners.”

He added: “The unions have embraced the cannabis industry. We have come to an end, as an international union, to take on the task of creating an industry so that the industry can be regulated, taxed and controlled. Rush concludes: “We are now in the part of the journey where many localities in California have defined licensing processes, which leads to a lot of dignity, a lot of safety, a lot of quality in cannabis. And another big reward; that is, good jobs. , many of whom will benefit from the unification.

Extensive reforms of cannabis policies and laws mean that owners and operators must adhere to the Labor Peace Agreement and related obligations. “Labor peace demands on cannabis employers are now a reality that the industry must accept,” said Josh Yong, vice president of marketing and sales at LRM. Inong continues: “We are here to help employers reach these LPAs, as well as traditional banking and payroll needs, investors, regulatory compliance, human resources, label development and talent recruitment.”

Partnerships, not opponents

Regarding the underground market; including synthetic marijuana, says Rush, “the reason they’re thriving right now is because of the over-taxation and burden on the cannabis industry.” He continues: “Excessive taxation leads to high prices in the dispensary. It also limits companies in terms of the amount of labor they can hire and retain and what they can legally produce. “Rush rejects the misconception: ‘The industry no longer has this huge rich profit margin, politicians need to understand that. They are still trying to tax the industry as if it were a money-rich industry.’

A comparison can be made with the wine, beer and spirits industry. Rush explained “see a winery that is a vertically integrated agricultural and production process” and applied the same concepts and standards to the cannabis industry. In addition, says Rush, “look at the distillery, it’s a highly regulated, highly taxable and highly integrated industry, almost everywhere.” He added: “The cannabis industry needs to understand what it is; which is an industry of vulnerability. It is a product for human consumption that must be regulated, taxed and controlled. He can also take advantage of being syndicated. “

Rush adds: “When Cannabis employers try to design themselves and work in similar ways, they will also realize the same kind of profitability. If we hire artisans, tradesmen, artisans, people who have been trained, certified, apprenticed, “creating” a productive industry that is profitable, that is very safe for consumers, workers and the communities in which we work, “everyone gets the benefits. “Labor peace is the law today, but it aims to create a transparent, peaceful, healthy, dignified environment for all participants, and it can be so,” Rush said.

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