cunews-federal-labor-regulators-accuse-starbucks-of-illegally-closing-stores-to-suppress-unionization

Federal Labor Regulators Accuse Starbucks of Illegally Closing Stores to Suppress Unionization

Starbucks Responds to the Allegations

A spokesperson for Starbucks stated that the company evaluates its store portfolio regularly as part of its standard business operations. The spokesperson mentioned that hundreds of new stores were opened last year, but over 100 underperforming locations, including about 3 percent of unionized stores, were closed. The company maintained that the closures were not related to union activities.

A Persistent Union Campaign

The union campaign, initiated in 2021 in the Buffalo, N.Y. area where two stores unionized, has since expanded across the country. The National Labor Relations Board has issued more than 100 complaints against Starbucks, accusing the company of various illegal behaviors, including retaliatory actions against workers involved in union activity and failure to engage in good faith bargaining. Administrative judges have ruled against Starbucks in over 30 instances, with the company appealing these decisions to the full labor board in Washington.

Bargaining and Appeals

Although none of the unionized stores have successfully negotiated a labor contract with Starbucks, discussions have been largely stalled. Recently, Starbucks expressed its intention to resume negotiations by reaching out to Workers United, the union involved in the campaign. The complaint filed on Wednesday highlights the announcement of 16 store closures in July 2022, followed by subsequent closures over the next few months.

The company’s response to the union campaign has been deemed problematic by Robert Mackall, an administrative judge involved in the cases. Mackall noted that Starbucks officials appeared to lack an understanding of the company’s Global Human Rights Statement and identified areas such as managers’ alleged unlawful promises and threats, as well as discriminatory or retaliatory discipline and discharge, where Starbucks could improve its practices.


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