Chicago Cannabis Workers Secure Landmark Union Contract at Dispensary 33

CHICAGO, IL – March 16, 2026 – In a significant victory for labor within the burgeoning cannabis industry, workers at Chicago’s Dispensary 33 have unanimously ratified their first collective bargaining agreement. The five-year contract, secured with Teamsters Local 777 after five months of negotiations, marks a pivotal moment for employees at one of the city's most prominent cannabis retailers.

The agreement guarantees workers higher wages, improved health care benefits, and robust job protections, establishing a new benchmark for labor standards in Illinois's competitive cannabis market. The ratification comes less than a year after the dispensary's budtenders and other staff overwhelmingly voted to join the union, signaling a decisive move toward formalizing their roles and responsibilities in a rapidly professionalizing sector.

A New Standard for Green Collar Jobs

The unanimous approval of the contract underscores the solidarity among the workers and the perceived value of the negotiated terms. For months, the bargaining committee worked to address key concerns common in the retail cannabis space, culminating in a deal that union leadership hails as a major success.

"This contract recognizes the vital roles these workers play in the success of this business, and it ensures they are treated with the respect they deserve," said Jim Glimco, President of Local 777, in a statement. "We're proud to bring more stability to Dispensary 33 by securing higher wages, improved health care benefits, and strong job protections against unjust discipline or termination."

One of the most critical elements of the new agreement is the replacement of "at-will" employment with a system that requires a just process for any disciplinary action. This protection is a cornerstone of union contracts and provides employees with a level of security not typically found in the retail sector.

The emotional weight of the achievement was not lost on the employees who fought for it. "This was honestly one of the hardest and most fulfilling experiences I've ever gone through," said Lyzette Soto, a Local 777 member and an award-winning budtender at the dispensary. "We are passionate and proud of the community we've created to guarantee better conditions in our workplace!"

The Growing Wave of Cannabis Unionization

The success at Dispensary 33 is not an isolated event but rather a high-profile example of a nationwide trend. As the legal cannabis industry, often dubbed the "Green Rush," matures, its workforce is increasingly turning to organized labor to transform precarious jobs into sustainable careers. Teamsters Local 777 has been at the forefront of this movement in Illinois, securing contracts for hundreds of cannabis workers over the past four years.

The union has successfully organized employees at major multi-state operators (MSOs), including multiple Zen Leaf locations owned by Verano Holdings and Enlightened Dispensary, a subsidiary of Revolution Cannabis. These agreements have consistently delivered significant gains, with recent contracts featuring wage increases of 18% or more over their lifetime, employer-funded 401(k) contributions, and expanded paid time off.

Other unions, like UFCW Local 881, are also actively organizing in the state, representing workers at companies like Curaleaf and Windy City Cannabis. The collective push is a response to widespread worker concerns over issues ranging from low pay and inconsistent scheduling to a lack of benefits and clear paths for career advancement.

"Cannabis workers across the country are organizing to win better wages, stronger benefits, and real career opportunities," noted Jesse Case, Director of the Teamsters Food Processing Division. "Our members at Dispensary 33 are proving what's possible when workers stand together and demand a fair contract. Agreements like this help turn cannabis jobs into stable careers."

A Unique Model: Employee Ownership Meets Union Labor

The situation at Dispensary 33 is particularly noteworthy due to its unique ownership structure. In early 2025, the company, along with its partnered Spark'd stores, became 100% employee-owned through an Employee Stock Ownership Plan (ESOP). This structure, which encompasses approximately 200 team members across six locations, means that the workers who just ratified their union contract are also the company's owners.

This dynamic reframes the traditional labor-management relationship. While the union contract ensures standardized and protected gains in wages and benefits, the ESOP means that the company's long-term success directly translates into financial rewards for the employee-owners. Increased labor costs from the new contract are, in effect, a direct investment in the owners themselves. This model could potentially mitigate common friction points, fostering a more collaborative environment and boosting productivity and loyalty, which can in turn offset rising operational expenses.

The contract's establishment of higher industry standards could also influence the broader market. Non-unionized dispensaries may face pressure to improve their own compensation packages to attract and retain talent, while the success at an employee-owned shop provides a powerful new blueprint for what a progressive, worker-centric cannabis business can look like.

A Pioneer's Path Forward

Dispensary 33 has long been a trailblazer in Chicago's cannabis scene. It opened in 2015 as the city's first medical dispensary and made history again by facilitating the state's first legal recreational sale on January 1, 2020. Known for its curated product selection and a unique in-store experience that allows customers to see and smell cannabis flower, the dispensary has cultivated a strong brand rooted in community engagement.

Its initiatives, such as the "Cannabis Compassion Program" that donates a percentage of medical sales to patients in need and the popular "Waldo's Forever Fest" 4/20 street festival, have cemented its status as more than just a retailer. The company's deep ties to its Andersonville and West Loop neighborhoods reflect a commitment to local culture and community-building.

With the ratification of this landmark union contract, Dispensary 33 continues on its pioneering path. By merging an employee-owned business model with the protections and collective power of a union, the workers have not only secured their own future but have also forged a compelling new model for the entire cannabis industry, demonstrating that a commitment to community can begin with a commitment to its own employees.