HomeInvesting NewsStarbucks and Union Representatives Are Engaged in a New Conflict

Starbucks and Union Representatives Are Engaged in a New Conflict

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Starbucks has demanded a temporary suspension of union elections and accused the NLRB of supporting the union campaign

Starbucks (NASDAQ:SBUX)

Starbucks (NASDAQ:SBUX) is currently dealing with additional labor unrest following allegations made by the National Labor Relations Board that the coffee retailer broke American labor law by denying pay raises and other perks to outlets that supported unionization.

As per the Associated Press, Starbucks (SBUX) was the subject of a complaint that was submitted late on Wednesday by the NLRB’s Seattle office. The complaint is based on allegations made by the union Workers United. 

Starbucks (SBUX) Outlets to Unionize

Over 220 Starbucks outlets in the United States have formally voted to unionize, and Starbucks (SBUX) has been exchanging accusations with Workers United against this backdrop for the majority of the year.

In its most recent complaint, the NLRB alleged that Starbucks broke the law by giving raises and advantages, such as better training, more prospects for professional growth, more tipping, and even laxer dress codes, to non-union outlets solely.

In the midst of more than 220 U.S. Starbucks outlets formally voting to unionize, Starbucks (SBUX) has been exchanging accusations with Workers United for the majority of the year.

In its most recent complaint, the NLRB alleged that Starbucks broke the law by giving raises and advantages, such as better training, more prospects for professional growth, more tipping, and even laxer dress codes, to non-union outlets solely.

Starbucks (SBUX) Calls for Negotiations

However, Starbucks (SBUX) interim CEO Howard Schultz insisted early this year that union stores must negotiate their own contracts with the corporation in accordance with American labor law.

The union for the coffee company claims that Starbucks (SBUX)’s decision) to advise workers at two locations that their stores will be shutting on Wednesday is retaliation for organizing efforts.

On an earnings conference call, Schultz said, “We do not have the same ability to make these enhancements at places that have a union.” Starbucks (SBUX) has more than 9,000 company-owned outlets in the U.S., thus the unionization drive still represents a very modest portion of the overall number of stores.

The union for the coffee company claims that Starbucks (SBUX)’s decision to advise workers at two locations that their stores will be shutting on Wednesday is retaliation for organizing efforts.

Featured Image:  Megapixl @Akidinova

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