The largest cannabis delivery service in the U.S. is facing mounting criticism from shift leaders in Southern California who say they are paid less than the workers they manage, struggle to make ends meet on low and stagnant wages, and are in conflict with the company over their right to unionize.
Nearly 600 Eaze delivery workers in California voted to join the United Food and Commercial Workers in 2023. They received their first contract earlier this year after threatening to strike in April.
More of the company’s workers have unionized this year: Another 100 drivers and workers at other California depots joined UFCW Local 770, while drivers in Sacramento joined the Teamsters in March. But crew leaders are in limbo.
Related: California cannabis delivery service workers threaten ‘unprecedented’ strike
Supervisors at Eaze are awaiting decisions from the National Labor Relations Board. Although the company has argued that they cannot form a union because they are in management positions, workers have argued that they should be allowed to unionize because of the low wages and lack of authority.
Eaze is facing financial problems. Its assets were sold at a public auction last month to an undisclosed buyer. The company says it cannot make any changes to employee wages for the time being.
“I don’t make enough money to survive,” said an Eaze crew leader in the Los Angeles area, who asked not to be identified for fear of reprisals. “I get food stamps, but those benefits have been cut. I can’t afford to fix my car when I need it. I can’t afford to go out to eat. And I’m not the only one struggling with these kinds of financial issues.”
Employees reported that their most recent requests for pay increases at the company were ignored and staff were not given annual pay rises.
“The amount we were asking for was $27 an hour,” the shift leader recalls, “but we were going to negotiate down to $25 an hour plus an annual wage structure. Because as it stands now, we are running the depots functionally.
“They see us as the lowest on the totem pole, and they just don’t feel the need to compensate us. They treat us like we’re extremely replaceable, and they keep adding responsibilities to our plate every day.”
Workers say they are trained to perform tasks outside their job descriptions without compensation, and struggle to get by on $18 an hour, slightly more than the Los Angeles County minimum wage of $17.24 an hour.
The labor disputes at Eaze come as the cannabis industry in the U.S. continues to grow as more states legalize recreational use. The industry’s workforce grew 5.4% last year, with annual revenues increasing 10.4% to $28.8 billion in 2023. Unions are organizing workers in the industry to try to ensure that this growth and expansion doesn’t come at the expense of employees.
Other team leaders at Eaze, who also wished to remain anonymous, spoke about the problems they had with their current salaries.
“The drivers are making more money than us now, which, if we’re supposed to be their management, doesn’t make sense to us,” said another supervisor in the Los Angeles area, who explained that drivers make upwards of $20 an hour, plus mileage and tips. “It’s happened so often that a few days before pay day, I don’t even know if I’ll have enough gas to get to work, and I’ve even borrowed money from drivers.
“Some of them are fine with lending me money that way, but it’s also a little embarrassing that I’m supposed to be your supervisor, but I have to borrow money from you because I don’t know if I’ll actually be able to come to work.”
They also claimed that the depot they work at is plagued by pests such as mice, cockroaches and ants, and allege that they are often understaffed and have to do extra work if a colleague signs off or leaves early. This makes it difficult to take breaks, the supervisor said, adding that their depot manager rarely comes on site because they are managing two depots at once.
“When a manager decides to show up, it feels very much like an absent parent trying to spend time with their child,” they added. “Everyone who is currently working is looking for another job.”
A third-shift supervisor in the Los Angeles area said, “Sometimes I feel like I’m gasping for air when I have to do simple things like grocery shopping, when I have to subsist on peanut butter and jelly sandwiches.”
The supervisor said they had been putting off medical care because they couldn’t afford it, even with health insurance. “We’re fighting for a raise right now, and there’s no confirmation from the company that we’re going to get that raise,” they said. “You look at McDonald’s, for example, basic workers make $20 an hour, and that’s not even supervisors or managers. Those are basic workers. No one should be able to get a supervisor or managerial position for minimum wage.”
A supervisor of an inventory specialist at Eaze in the Los Angeles area claimed that there was a lack of organization within the company. “Getting an answer from someone in upper management to process things the right way is like playing telephone,” they said. “Who wants to answer the phone? And who’s going to tell us what to do? And then it could be the right answer or the wrong answer.”
Related: Thriving US cannabis industry seen as fertile ground for union expansion
A union driver at Eaze in the Los Angeles area explained that the pay gap creates morale and workplace issues.
“Even though we won our contract, what I’m most disappointed about is that they’ve been able to keep the supervisors out of the union because they’re on their own. They don’t have anyone to stand up for them and they’re clearly being abused,” the driver said. “It’s pretty clear that they’ve been given a title to keep them from unionizing. They’re not paid like management. They’re underpaid and they don’t really have the authority to do much.”
Eaze declined to comment on the report. The company’s assets were auctioned on August 6 amid ongoing discord among investors, including Netscape’s billionaire founder James Clark.
The company also said it is currently working with the new owner to maintain operations and employees, claiming it is in compliance with its collective bargaining agreement with UFCW.
The largest cannabis delivery service in the U.S. is facing mounting criticism from shift leaders in Southern California who say they are paid less than the Read More