Tilray Stock Drops as Workers Wait on Union Vote Result

Tilray stock

Tilray stock is trading down slightly today after workers at the company's Nanaimo facility wait to see if they can join the United Food and Commercial Workers Union (UFCW).

Skewed Votes

The union is looking to become the first in Canada to sign up workers in the cannabis industry and first spoke to employees at Tilray's (NASDAQ:TLRY) Nanaimo facility back in September, who admitted to being concerned for their job security. At this point, the union began signing up members and a vote overseen by the BC Labour Relations Board (BC LRB) was carried out on October 16, but the results of the vote and a decision about which employees in the company are eligible to vote is still under review by the BC LRB. Tilray shares are currently down about 1.5%.

Shane Dawson, UFCW’s director of organizing, said that the union is focusing strictly on organizing Tilray Nanaimo employees who work in cultivation, of which there are around 120. However, on the day of the vote, over 200 employees across various departments turned out to cast their vote. Dawson said that the extra votes may have skewed the results. “They’ve got 35 people that work at the call center. They took those 35 people and shipped them over to vote. They trucked them over. The board should’ve never allowed it." Tilray stock is currently trading for  $19.86.

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Tilray Stock Trades Near Year-Low

Tilray has responded to Dawson's accusations by saying, “The union has decided it only wants to represent certain select groups of employees at our Nanaimo facility, whereas Tilray believes all of its Nanaimo facility employees should have the right to decide if they want to be represented.” Tilray shares have been tanking throughout 2019, and currently hover above a year-low.

However, Dawson argues that it is not about what facility an employee works in but rather the job they do within the company, saying "the scientist that invented the gene doesn’t have much to do with the guy clipping off the buds.” With several other big hitters in the industry being forced into layoffs due to the broader struggles of the industry, it's no surprise to see Tilray employees concerned for their job safety, particularly given the declining value of Tilray stock and the company's recent mixed earnings report.

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