Workers at the Sunnyside medical cannabis dispensary in Wyomissing, Pennsylvania, initiated a strike on Thursday amid ongoing disputes over contract terms. Sunnyside is a subsidiary of multi-state operator Cresco Labs Inc (CNSX: CL) (OTCMKTS: CRLBF) (FRA: 6CQ).
The action involves 21 employees who are seeking higher wages and more stable scheduling to better support themselves. Represented by labour union Teamsters Local 429, the group voted unanimously to authorize the walkout after negotiations with management stalled without yielding a satisfactory agreement.
Picketing began outside the dispensary, with workers expressing frustration over what they describe as inadequate compensation despite their contributions to the company’s success. Union officials have indicated openness to resuming talks if the company presents a more competitive proposal, but as of Feb. 27, Cresco Labs has not issued a public response regarding the strike.
Despite the dissatisfaction among these budtenders and educators, the state’s medical cannabis program is among the strongest in the country. There are roughly 439,000 patients in Pennsylvania with annual sales slowly but steadily growing each year. Recreational cannabis remains illegal.
The Teamsters-Sunnyside relationship
Sunnyside operates as a key retail brand under Cresco Labs, focusing on medical and recreational cannabis products in multiple states.
The Wyomissing location serves as a dispensary where employees, known as wellness advisors, assist customers with product selection and education. The current strike highlights specific grievances at this site, where workers argue that their pay does not reflect the demands of the role or the local medical industry’s profitability.
Teamsters Local 429 has served as the bargaining unit for these employees, advocating for improvements in wages and hours. This relationship with Cresco dates back further, as evidenced by a previous labour action in November of 2025. Union representatives and market observers say it was the longest successful cannabis strike in U.S. history.
That earlier dispute, involving other Pennsylvania Teamsters, resulted in gains for workers and set a precedent for ongoing organizing efforts. In the present case, union leaders like Bill Shappell emphasize solidarity among the members, while individual workers such as Cobi Motley are stressing the need for livable wages to promote long-term careers in cannabis retail.
Read more: Cresco Labs enters Germany with medical flower distribution agreement
Cresco’s financial performance has been mixed
In the latest financials released on Nov. 5, the company posted adjusted EBITDA of US$40 million, with a margin of 24.1 per cent and generated US$6 million in operating cash flow. Gross profit was US$79 million, with an adjusted gross margin of 48.8 per cent.
The adjusted EBITDA margin shows the proportion of revenue converted into earnings before interest, taxes, depreciation, amortization and specified adjustments. It serves as a measure of operational efficiency and profitability from core business activities. Adjusted gross margins reflect the percentage of revenue remaining after accounting for the cost of goods sold, excluding certain non-recurring or acquisition-related adjustments.
Cresco’s adjusted EBITDA margin of 24.1 per cent in Q3 indicates solid operational profitability from core business activities after accounting for typical non-cash and one-time adjustments. Its adjusted gross margin of 48.8 per cent reflects reasonable efficiency in generating profit from product sales after direct costs. However, both figures sit in the mid-range compared to leading peers in the cannabis industry.
The quarter resulted in a net loss of US$22 million, which included a US$16 million charge from debt extinguishment related to refinancing its senior secured term loan.
The company’s stock has shown volatility in early 2026, with recent trading levels around US$1.00 per share and a year-to-date decline of approximately 20 per cent. Cresco is scheduled to release its fourth-quarter and full-year 2025 financial results on Mar. 5.
Read more: Cresco Labs becomes latest operator to bail on California weed sector
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