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WeedMD responds to United Food and Commercial Workers Union Canada arguments

Representing 250,000 workers across Canada, UFCW said it wanted to begin negotiating a contract with the company next week

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Around 250 workers are employed at WeedMD’s cultivation facility at Strathroy, Aylmer and Bowmanville

WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF), the cannabis producer and distributor, has responded to arguments from the United Food and Commercial Workers Union (UFCW Canada) and rejected them.

On March 17 this year, it was reported that the union had notified the Ontario cannabis producer that it should sit down and bargain a contract for members.

Around 250 workers are employed at WeedMD’s cultivation facility at Strathroy, Aylmer and Bowmanville.

Representing 250,000 workers across Canada, UFCW said it wanted to begin negotiating a contract with the company next week.

Cannabis production workers in Ontario are considered agricultural employees and fall under the provincial Agricultural Employees Protection Act (AEPA), legislation that the UFCW claims violates the Canadian Charter of Rights and Freedoms by failing to protect the right of freedom of association rights for workers.

In a statement today, WeedMD said UFCW Canada was "well aware" that the cannabis industry has been properly characterized as agricultural, and is subject to specific labour legislation in the form of the Agricultural Employees Protection Act, 2002.

"UFCW Canada's arguments have already been considered and rejected by the governing tribunal under the Ontario Ministry of Agriculture, Food and Rural Affairs (OMFRA)," said the cannabis firm.

"As one of Canada's leading cannabis companies, we fully understand our obligation to our employees and we are in full compliance with AEPA's regulations. We greatly value and respect the contributions of our employees, and we take their health and safety very seriously."

It added: "WeedMD is aligned with OMFRA in that UFCW Canada's continued attempts to mischaracterize employers in the cannabis sector is disingenuous. Furthermore, its allegations against WeedMD are unfounded and without merit."

WeedMD said it was in "good standing" with all regulatory bodies responsible for investigating claims under Health Canada; the Ministry of Labour; and the Occupational Health and Safety Act.

Shares in Toronto ticked up nearly 7% to C$0.46.

---Updates for share price---

Contact the author at [email protected]

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