Oregon Judge Strikes Down Cannabis Labor Agreement Measure
PORTLAND, Ore. — A federal court ruling has declared Measure 119, a labor agreement requirement for cannabis businesses, unconstitutional. The measure, approved by voters last year, mandated that cannabis companies secure a labor peace agreement with a labor organization to obtain or renew their licenses.
On Tuesday, U.S. District Judge Michael Simon issued a permanent injunction against the enforcement of Measure 119, citing violations of free speech for business owners and conflicts with federal labor law. The measure required employers to maintain neutrality when labor organizations approached employees regarding collective bargaining rights.
The ruling stemmed from a lawsuit filed by Portland-based cannabis retailer Ascend and Bubble’s Hash, a processor of edibles and concentrates. The plaintiffs argued that the measure infringed on their rights to express opinions about unionization freely.
State lawyers, defending the measure, claimed it did not restrict speech since employers could still share views about unions, provided they remained neutral. However, Judge Simon disagreed, stating, "Measure 119 does not limit itself to restricting only threatening, coercive, false, or misleading speech but instead prohibits all speech by employers that is not ‘neutral’ toward unionization."
During the hearing, Simon noted the historical importance of unions and acknowledged the unique challenges faced by workers in the cannabis industry. Nevertheless, he expressed concern over the ambiguous language of the measure regarding permissible employer speech.
As of now, Oregon’s Department of Justice has not released a statement regarding potential appeals against the ruling. The outcome raises significant questions about the balance between labor rights and free speech for cannabis businesses in the state.
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