Breakthrough Labor Contract for Eaze Cannabis Workers
Nearly 500 Eaze cannabis workers have successfully reached a historic agreement with the United Food and Commercial Workers (UFCW) Union, securing three-year contracts after months of corporate upheaval, wage reductions, and looming layoffs.
Key Highlights of the New Agreement
Comprehensive Worker Benefits
- Fair wages with retroactive raises backdated to January 1, 2025.
- Employer contributions toward health benefits.
- Indexed mileage reimbursement for delivery drivers.
Ron Swallow, an Eaze driver from Van Nuys, stated:
“With this contract ratification victory, Eaze cannabis delivery drivers can finally leave behind the anxiety caused by recent negotiations.”
Background: Wage Disputes and Strike Threats
The labor contract comes nearly a year after Eaze delivery drivers threatened a strike ahead of the 4/20 cannabis holiday due to compensation issues. The mileage reimbursement rate had been cut from the federal recommendation of 67 cents to 40 cents per mile. According to an Eaze driver:
“This contract significantly improves working conditions and positions us well for future negotiations. Strike threats undoubtedly pushed management to make concessions.”
Corporate Restructuring and Worker Challenges
Transition Turmoil
The agreement follows major corporate restructuring as Eaze Inc. of California LLC transitioned from Stachs LLC. This shift:
- Forced warehouse employees, not part of union classes, to reapply for jobs at lower wages.
- Created significant wage reductions for many employees.
Mattew Sit, a former inventory supervisor at the Sacramento depot, revealed:
“I took a $12 pay cut. They started me at minimum wage—completely unsustainable in Sacramento. Management refused any negotiations, claiming, ‘You are working for a different company now,’ despite my four years of service.”
Sit explained that:
- He resorted to working six days a week with extensive overtime to offset wage losses.
- Management only matched his previous salary after he resigned and secured a better offer elsewhere.
Skeleton Crew Operations
The workforce reduction forced employees to juggle multiple roles, leading to:
- Intense workload pressure.
- Diminished morale among staff.
“This year has been the toughest start at work I can remember. Business continued as usual, but with fewer hands, it became almost impossible to maintain operations efficiently,” Sit stated.
Major Disruptions: Stachs LLC Wind-Down and Auction
Stachs LLC, a subsidiary of Eaze Technologies, announced it would cease operations by December 2024, adding to the chaos. Relief came when tech billionaire James Clark’s FoundersJT:
- Purchased Eaze’s assets at auction for $54 million.
- Provided an additional $10 million in investment shortly after the acquisition.
Leadership’s Strategic Outlook
Cory Azzalino, CEO of California Cannabis Market LLC, revealed:
“Our recovery strategy now hinges on our Florida operations, where we’ve nearly achieved cashflow breakeven following substantial capital investments.”
Azzalino also shared plans for:
- A shift towards scheduled delivery services to expand market reach.
- Employee concerns regarding the lack of transparency during corporate transitions.
“We had no clue about the auction until it was publicly reported. Initially, we were told it was just a ‘name change,’ but the restructuring’s true extent became clear weeks before implementation,” said Hein, a former supervisor.
Union Challenges Amid Restructuring
The transition period also:
- Excluded many union advocates—especially those affiliated with Teamsters before March 2024.
- Left only two of thirty organizers rehired post-restructuring.
“It seemed somewhat calculated,” commented a former supervisor, highlighting the difficult environment union organizers faced.
Sacramento’s unique position—being non-unionized—further complicated its transition, forcing employees to navigate challenges without union protection.
UFCW’s Role and Future Protections
The new labor agreement:
- Recognizes employees’ previous service with Stachs LLC.
- Provides protection clauses for potential ownership changes in the future.
Grant Tom, of UFCW Local 135, emphasized:
“Eaze workers showed incredible dedication through turbulent times, securing a contract that ensures wages, benefits, and rights. This agreement reflects union solidarity and guarantees that cannabis workers have the representation they deserve as the industry evolves.”
Final Thoughts: A Model for the Cannabis Industry
The Eaze labor contract represents a landmark achievement in the cannabis industry, showcasing how union strength and worker solidarity can overcome corporate challenges. With UFCW representing nearly 600 Eaze/Stachs workers and over 6,000 cannabis workers across California, this deal sets a precedent for fair labor practices as the cannabis sector continues to expand.