'A Massive Step': Starbucks Agrees to New Contract Talks With Union Workers
One labor expert and professor said it is "hard to overstate how big a deal this is."
Protesters rally against Starbucks union-busting outside one of the global coffee chain's locations in Great Neck, New York on August 15, 2022.(Photo: Thomas A. Ferrara/Newsday RM via Getty Images)
BRETT WILKINS
Feb 27, 2024
COMMON DREAMS
U.S. labor advocates on Tuesday hailed an agreement between the Starbucks Workers United union and coffee giant to restart talks aimed at reaching a collective bargaining agreement after a two-and-a-half year impasse
"Starbucks and Workers United have a shared commitment to establishing a positive relationship in the interests of Starbucks partners," the company and union said in a joint statement. "During mediation discussions last week for the ongoing brand and [intellectual property] litigation, it became clear that there was a constructive path forward on the broader issue of the future of organizing and collective bargaining at Starbucks."
The statement added that the two parties "have agreed to begin discussions on a foundational framework designed to achieve both collective bargaining agreements for represented stores and partners, and the resolution of litigation between the union and the company. This includes resolving litigation related to both the partner benefits announced in May 2022 and the use of the Starbucks brand."
Reacting to the news, More Perfect Unionsaid on social media: "Starbucks has been refusing to bargain with over 300 unionized stores. Now they seem to finally be conceding to the union. This is a massive step forward."
Eric Blanc, a labor expert and professor at Rutgers University in New Jersey, said it is "hard to overstate how big a deal this is."
"Relentless organizing by Starbucks Workers United has forced Starbucks to stop illegally denying benefits to union members and to start (it appears) bargaining a first contract in good faith," he added.
In what Starbucks called a "sign of good faith," the company agreed to offer approximately 10,000 employees in unionized stores higher wages and benefits it extended to nonunionized workers nearly two years ago, including the ability for customers to add tips to credit card payments.
Starbucks executive vice president and chief partner officer Sara Kelly said: "We have reached an important milestone. We have agreed with Workers United that we will begin discussions on a foundational framework designed to achieve collective bargaining agreements, including a fair process for organizing, and the resolution of some outstanding litigation."
"There is a lot of work ahead, but this is an important, positive step," Kelly added. "It is a clear demonstration of our intent to build a constructive relationship with Workers United in the interests of our partners. I want to acknowledge and appreciate the union's willingness to do the same."
While workers at nearly 400 Starbucks stores have voted to unionize, none have worked out contracts with the company.
Last week, baristas at 21 Starbucks stores in 14 states launched the largest single-day unionization drive in company history.
Starbucks agrees to US union organizing 'framework'
A Starbucks coffee shop is seen in downtown Los Angeles, California, U.S., June 29, 2022. REUTERS/Lucy Nicholson Purchase Licensing Rights, opens new tab
Feb 27 (Reuters) - Starbucks (SBUX.O), opens new tab 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 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
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.
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 (AMZN.O), opens new tab, grocery chain Trader Joe's and two Starbucks baristas who oppose unionizing are making similar arguments in separate cases.
Reporting by Daniel Wiessner in Albany, New York; Editing by Alexia Garamfalvi and Stephen Coates
Daniela Sirtori-Cortina and Josh Eidelson
Tue, February 27, 2024
(Bloomberg) -- Starbucks Corp., in a break from the labor tactics of its former chief executive officer, said it agreed with the main union representing its workers to start talks about how to achieve collective-bargaining agreements and provide a fair process for union organizing.
Starbucks said it also agreed to provide workers represented by the Starbucks Workers United union with benefits, such as credit-card tipping, that it was previously providing only to nonunion cafes. The company had maintained that labor law prevented it from extending those perks to unionized shops that lacked collective bargaining agreements, sparking one of many legal disputes that the two sides said they’re now working to resolve.
During mediation discussions last week, “it became clear that there was a constructive path forward on the broader issue of the future of organizing and collective bargaining at Starbucks,” the company said in a statement Tuesday. The union, Starbucks Workers United, issued a similar statement on X, formerly known as Twitter.
The announcement marks one of the first concrete steps toward resolving a public, bitter fight between the company and the union. Around 400 of Starbucks’ more than 9,700 corporate-run US locations have voted to join the union since its first landmark win in December 2021. Yet none of the locations has come close to securing a union contract with the company, and the pace of the union’s growth has slowed.
Howard Schultz, the founder of the modern Starbucks chain and three-time holder of the CEO title, handed the reins to Laxman Narasimhan in March. In December, Starbucks said it reached out to Workers United to attempt to end an impasse over contract talks. The company was looking to restart talks in January with the goal of completing “bargaining and the ratification of contracts in 2024.”
Sara Kelly, the company’s chief partner officer, called Tuesday’s announcement an “important, positive step” in a statement.
“It is a clear demonstration of our intent to build a constructive relationship with Workers United in the interests of our partners,” Kelly said. “I want to acknowledge and appreciate the union’s willingness to do the same.”
Brand Lawsuits
On Tuesday, the two parties said they’re also looking to resolve lawsuits concerning the use of its brand. The coffee chain had sued the union in October after the outbreak of the Israel-Hamas war, saying the group used the company’s intellectual property in social media posts suggesting the chain supported violence against civilians.
Workers United responded with its own lawsuit for defamation, accusing Starbucks of seeking to “exploit the ongoing tragedy in the Middle East to harm the union’s reputation.”
Regional directors of the US National Labor Relations Board have issued more than 100 complaints against the company, alleging illegal antiunion tactics including closing stores, firing activists, and refusing to fairly negotiate at unionized cafes.
The agency’s general counsel, Jennifer Abruzzo, said this month that she considers Starbucks “a bad actor nationally.” Starbucks has denied wrongdoing, and has said the union has been the one refusing to negotiate in good faith.
An NLRB judge ruled in September that Starbucks had violated federal law across the country by providing improvements such as credit card tipping as well as higher pay to nonunion stores while refusing to do the same at unionized locations. The agency judge concluded that Starbucks’ argument that it legally couldn’t extend those improvements was incorrect and not made in good faith.
The pivot on credit-card tipping, as well as the signals of potential coming headway on bargaining, could spur more growth for the union campaign, which has struggled at times to maintain momentum. Unionized baristas have been excluded from new perks their nonunion counterparts were receiving, while seeing little sign of progress with the company at the bargaining table.
Bloomberg Businessweek
Joint statement announces agreement to work toward labor agreements on ‘constructive path forward’
Associated Press
Starbucks and the union organizing its US workers said on Tuesday they have agreed to begin talks with the aim of reaching labor agreements.
The announcement was a breakthrough for the two sides, which have been at odds since Workers United first organized baristas at a Starbucks store in Buffalo, New York, in late 2021.
“Starbucks and Workers United have a shared commitment to establishing a positive relationship in the interests of Starbucks partners,” the company and the union said in a joint statement.
Twenty-five US universities face calls to cancel Starbucks contracts
Workers have voted to unionize at more than 370 company-owned Starbucks stores in the US, but none has reached a labor agreement with the company.
The process has been contentious. In multiple cases, federal courts have ordered Starbucks to reinstate workers who had been fired after leading unionization efforts at their stores. Regional offices of the National Labor Relations Board also have issued at least 120 complaints against Starbucks for unfair labor practices, including refusal to bargain and reserving pay raises and other benefits for non-union workers.
Starbucks said on Tuesday that, in a sign of goodwill, it will provide workers in unionized stores with benefits it announced in May 2022, including the ability for customers to add a tip to their credit card payments.
Starbucks was the first to indicate that it wanted a better relationship with the union. In December, the company said it wanted to restart labor talks with the goal of ratifying contract agreements in 2024. Before then, the two sides had not spoken for seven months.
During discussions last week, the two sides said it had become clear there was “a constructive path forward on the broader issue of the future of organizing and collective bargaining at Starbucks”.
Starbucks and Workers United said on Tuesday that they also plan to discuss resolving litigation between them. In October, Starbucks sued Workers United, saying a pro-Palestinian social media post from a union account early in the Israel-Gaza war had angered hundreds of customers and damaged its reputation. The company demanded that the union stop using its name and likeness. Workers United countersued, saying Starbucks had defamed the union and implied it supported terrorism.
“While there is important work ahead, coming together to work on this framework represents an important step forward and is a clear demonstration of a shared commitment to working collaboratively on behalf of partners,” the two sides said in their statement.
Message from Sara: Starbucks and Workers United Agree on Path Forward
A message from Sara Kelly, evp, chief partner officer, Starbucks Coffee Company:
In December, we shared a letter with Workers United expressing our sincere desire to work together, with the goal of completing bargaining and contract ratification in 2024 for stores that have chosen to be represented by Workers United.
Since Laxman became ceo, he’s spent time in our stores, listening to, and learning from, partners. He’s been clear that we are deeply committed to delivering on our partner promise and to restitching the fabric of the green apron for all partners at Starbucks.
I want to let you know that we have reached an important milestone. We have agreed with Workers United that we will begin discussions on a foundational framework designed to achieve collective bargaining agreements, including a fair process for organizing, and the resolution of some outstanding litigation.
There is a lot of work ahead, but this is an important, positive step. It is a clear demonstration of our intent to build a constructive relationship with Workers United in the interests of our partners. I want to acknowledge and appreciate the union’s willingness to do the same.
Our partners are the core of our business, and we are committed to providing everyone who wears the green apron a bridge to a better future.
Further, the Company issued the following statement:
Starbucks and Workers United have a shared commitment to establishing a positive relationship in the interests of Starbucks partners. During mediation discussions last week for the ongoing brand and IP litigation, it became clear that there was a constructive path forward on the broader issue of the future of organizing and collective bargaining at Starbucks.
Starbucks and Workers United have agreed to begin discussions on a foundational framework designed to achieve both collective bargaining agreements for represented stores and partners, and the resolution of litigation between the union and the company. This includes resolving litigation related to both the partner benefits announced in May 2022, and the use of the Starbucks brand.
As a sign of good faith, Starbucks has agreed to provide partners represented by Workers United with the May 2022 benefits, including credit card tipping.
While there is important work ahead, coming together to work on this framework represents an important step forward and is a clear demonstration of a shared commitment to working collaboratively on behalf of partners.
For Workers United’s statement and related inquiries, contact Danny Massey.
21 Starbucks Stores Plan To Form Unions In 1-Day Blitz
The union Workers United has organized roughly 400 stores, but is locked in a bitter bargaining fight with the coffee chain.
By Dave Jamieson
Feb 20, 2024
Starbucks baristas from 21 stores around the country told the company Tuesday that they plan to organize, potentially adding hundreds of new members to a union campaign that’s battling the coffee chain for first contracts.
The union, Workers United, said it is the largest group of Starbucks stores to go public with their organizing plans in a single day since the effort began in Western New York in 2021. The 21 locations are scattered across 14 states from coast to coast.
Workers sent a joint letter to the company’s CEO, Laxman Narasimhan, demanding “higher wages, fair and consistent scheduling, improved benefits, and a safe and dignified workplace.”
“We have been met with higher and higher expectations without being given the resources to meet them,” they wrote.
A Starbucks spokesperson said that although the company believes a “direct relationship as partners is core to our culture,” it would respect employees’ right to organize and intends to negotiate first contracts with unionized stores this year.
“We encourage all partners at stores petitioning for representation to get the facts, make an informed choice and ensure their voice heard by voting in neutral, secret-ballot elections,” the spokesperson said.
Baristas at roughly 400 of Starbucks’ 9,000 corporate-owned stores have formed unions with Workers United as part of the campaign, one of the biggest U.S. labor organizing successes in years. Workers United has won more than 80% of the union elections that have been held, according to the National Labor Relations Board, the federal agency that oversees elections and investigates union-busting allegations.
“It’s important that we’re recognized as people rather than profit machines.”- Barista Lizzie Harlow
But the pace at which stores are unionizing has slowed since 2022 in the face of an aggressive counter-campaign by the Seattle-based company.
Federal labor prosecutors have accused Starbucks of illegally firing union supporters, making unlawful threats and refusing to bargain with workers throughout the campaign. Labor board judges have ruled against Starbucks again and again, finding the company violated the law in 48 of 49 cases that have been heard so far, according to a tally provided by an NLRB spokesperson.
Barista Lizzie Harlow said in an interview that those findings didn’t discourage co-workers from signing on for the union as part of Tuesday’s push. The 31-year-old works in the town of Sulphur, Louisiana, two hours west of Baton Rouge, and said none of the Starbucks locations in their district have formed unions yet.
Harlow said a lot of workers at the store are worried about losing hours, which could jeopardize their qualification for benefits.
“It’s important that we’re recognized as people rather than profit machines,” she said. “We don’t have another choice but to stand together.”
Workers United said Starbucks workers at 21 stores around the country notified the company Tuesday that they plan to unionize.
NURPHOTO VIA GETTY IMAGES
The Starbucks spokesperson said the company “has continued to work to build weekly schedules that reflect our partners’ preferred hours.”
Twenty-year-old Alex Taylor, whose store in Madison, Wisconsin, also plans to petition for a union, said he’s optimistic the union will start to make good headway on a collective bargaining agreement.
“Through this mass filing we hope, and I certainly do, that Starbucks treats us like we’re advertised to be, as well-supported and respected partners,” Taylor said.
Growing the campaign is critical to any success the union hopes to have at the bargaining table. Starbucks has insisted that each store must bargain its own contract, just as each store has unionized on its own, but the larger the campaign gets, the easier it will be for the union to bend the company toward a nationwide agreement.
The Starbucks effort is part of a wave of new organizing at big-name companies like Amazon, Trader Joe’s, Apple and REI, all of which were previously union-free. Those campaigns have all notched big organizing wins but have struggled to secure contractual gains at the bargaining table.
“Starbucks has blunted the organizing effort by rolling out new raises and benefits for non-union stores while withholding them from those that have organized.”
The Starbucks workers are demanding minimum pay of $20 per hour, annual raises of 5% and a guarantee of at least 32 hours a week for full-time workers, among other proposals. A strong contract could turbocharge more Starbucks organizing and set a bar for similar food-service chains, though the two sides are still a long ways off from reaching a deal.
Starbucks has blunted the organizing effort by rolling out new raises and benefits for non-union stores while withholding them from those that have organized — a nationwide policy one labor board judge deemed illegal. Starbucks has denied it broke the law and appealed the decision.
As HuffPost recently reported, the company is even excluding union workers from its North America Barista Championship, the winner of which gets a trip to Starbucks’ coffee farm in Costa Rica.
Taylor said he’s noticed the disparate treatment: “It says in fine print, every single time, that if you are in a unionized store you may not be eligible for this.”
But Taylor, who’s working toward his college degree, said he’s focused on bigger workplace issues, like making sure baristas get enough hours to make ends meet.
“At end of the day [I look at] what the union is fighting for — guaranteed hours, secure scheduling, higher wages,” he said. “Having a barista championship is not nearly as impactful as being able to pay my rent and get groceries in a way that I’m not stressed out every month.”
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