💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Starbucks agrees to US union organizing 'framework'

Published 02/27/2024, 04:49 PM
Updated 02/27/2024, 06:10 PM
© Reuters. A Starbucks coffee shop is seen in downtown Los Angeles, California, U.S., June 29, 2022. REUTERS/Lucy Nicholson
SBUX
-

By Daniel Wiessner

(Reuters) -Starbucks and a union seeking to organize the coffee chain's U.S. workforce said on Tuesday they have agreed to create a "framework" to guide organizing and collective bargaining and potentially settle scores of pending legal disputes.

Starbucks (NASDAQ:SBUX) and Workers United said in a joint announcement that during talks last week to settle an ongoing court case, "a constructive path forward emerged" on the future of the nationwide labor campaign that began in 2021 and has led workers to unionize at nearly 400 of the company's 9,000 U.S. stores.

The coffee chain and the union said they agreed to begin discussions on a "foundational framework" that includes a fair process for workers to organize and a process to achieve collective bargaining agreements on a store-by-store basis.

Starbucks said that "as a sign of good faith" it agreed to provide workers at unionized stores with benefits that were granted to non-union workers in 2022, including the ability to receive customer tips from credit card transactions.

The announcement is a remarkable turn in a contentious battle, with both sides accusing the other of improper and unlawful conduct. Starbucks in December said it would resume bargaining talks with the union in an attempt to mend its strained relationship with some employees.

Workers United has filed hundreds of complaints with the National Labor Relations Board accusing Starbucks of illegal labor practices, including threatening and firing union supporters and shuttering stores to prevent unionizing. The board and several federal courts have ruled that Starbucks violated U.S. labor law.

Starbucks has denied wrongdoing while accusing the union of trademark infringement for using the company's circular green logo as the basis for its own branding, and claiming it encouraged workers to violate company policies.

According to Tuesday's announcement, Starbucks and Workers United will also work toward settling the outstanding legal cases, but it was not clear which cases that cover.

© Reuters. A Starbucks coffee shop is seen in downtown Los Angeles, California, U.S., June 29, 2022. REUTERS/Lucy Nicholson

In addition to the cases before the NLRB, Starbucks also has a case pending at the U.S. Supreme Court over Starbucks' firing of seven pro-union workers at a Memphis, Tennessee store. That case poses the broader question of when the NLRB can win court orders requiring employers to reinstate fired workers or take other steps to address alleged illegal labor practices.

Earlier this month, Starbucks also raised claims in a separate case before the labor board that the agency's structure violates the U.S. Constitution. Rocket maker SpaceX, Amazon.com (NASDAQ:AMZN), grocery chain Trader Joe's and two Starbucks baristas who oppose unionizing are making similar arguments in separate cases.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.