Another union challenged by the Teamsters as not being “bona fide” is dissolving, according to its attorney.
On the heels of its complaint to the California Agricultural Labor Relations Board about Pro-Tech 33, the International Brotherhood of Teamsters filed a new complaint July 27 alleging that the National Agricultural Workers Union was not a “bona fide labor organization” under the state’s Medicinal and Adult-Use Cannabis Regulation and Safety Act. It also alleged that three entities that do business as Caliva, as well as Coastal Dispensary, signed labor peace agreements (LPA) with NAWU.
The ALRB, in an Aug. 16 order, acknowledged the Teamsters’ complaint and gave the NAWU and the licensees 10 days to respond.
NAWU’s attorney Anthony Raimondo, of the Fresno law firm Raimondo | Miller, told CRB Monitor that the NAWU was a start-up labor organization trying to provide an alternative to large, “corporate” unions affiliated with the AFL-CIO that would “put workers in the driver’s seat.” They were trying to recruit volunteers to lead organization efforts, but the Covid pandemic prevented it from meeting with workers and efforts stalled.
He said NAWU filed a response with the ALRB saying the organization is in the process of dissolving.
“Sadly, the organization will not survive. They need members to pay union dues. They are in no position to fight this battle,” Raimondo said.
NAWU head chairs California labor commission
The Teamsters complaint, of which CRB Monitor obtained a copy, states that the National Agricultural Workers Union is an old union that eventually merged with the United Farm Workers.
It’s now led by Sean McNally of Bakersfield, who currently chairs the California Commission on Health and Safety and Workers’ Compensation. McNally was appointed by the governor and serves as an employer representative. The Teamsters said he has held various California positions over the years and was appointed and served as chair of the CHSWC during Gov. Arnold Schwarzenegger’s administration. Gov. Gavin Newsom’s press office has not responded to an email seeking comment.
The Teamsters allege McNally used to practice law at a firm that defended companies from worker compensation claims, but he was suspended on July 1, 2021, by the State Bar of California. Around then, the NAWU “peculiarly” began entering into LPAs with cannabis business licensees, including Flor East Bay, the complaint said.
McNally’s state bar record shows he is under “involuntary inactive” status and ineligible to practice law in California, 30 years after first gaining admission in the state. The attorney’s suspension Raimondo said he hasn’t spoken with McNally about this, but anyone has the right to let their license lapse if they don’t plan on practicing law any more.
The NAWU does not have a website, and the Teamsters said it lacks members.
“Given McNally spent his career assisting employers in fighting workers’ claims, it is fair to assume there may exist a real conflict in McNally’s current and alleged representation of cannabis workers,” the complaint said.
“The allegations made by the Teamsters are so false as to be laughable,” Raimondo responded.
For example, he said the organization is not the National Agricultural Workers Union, it is the National Ag Workers Union. The complaint included a copy of the Labor Organization Information Report that McNally purportedly filed with the U.S. Department of Labor that states the name with the truncated “Ag.”
LPAs signed with Gold Flora Corp. companies
The Teamsters allege the following licensees signed LPAs with NAWU on or about Feb. 6, 2023:
- NC3 Systems Inc., dba as Caliva and Deli by Caliva Bellflower
- Caliva Camisj2 Inc., dba as Deli by Caliva San Jose
- Coastal Dispensary LLC
According to the CRB Monitor database, NC3 Systems and Coastal Dispensary are at least partially owned by Gold Flora Corp., which merged with Caliva owner The Parent Company in July. Troy Datcher, Gold Flora’s board chair and former Parent Co. chief executive, is an investor in all the entities. It’s been reported that Shawn Carter (rap mogul Jay-Z) has been an investor in The Parent Company. The CRB Monitor database shows Carter as an investor in NC3 Systems.
Emails to compliance, licensing and partners at gocaliva.com for comment were unreturned.
Peter Finn, western regional vice president for the Teamsters and director of its Food Processing Division, did not respond to phone messages seeking comment.
The ALRB said it must issue a report to the California Department of Cannabis Control no later than 90 days after receipt of the complaint.
CDCC spokesman David Hafner said, “Nothing’s been decided. We can’t do anything until the ALRB informs us.”
