Following strikes over firing of unionized workers, New York City has weighed in and is suing the coffeehouse giant.
Learn more about the unionization drive at Starbucks.
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In December 2021, Starbucks workers in Buffalo, New York, founded an upstart union called Starbucks Workers United. Fast forward nine months, and more than 200 Starbucks locations across the US have unionized.
Starbucks Workers United’s mission is to have a share in Starbucks’ success. “We want to have a voice in determining what that looks like for us.
“We think there is a disconnect between corporate and us. The company says that partners come first, but all too often puts large shareholders above all else.”
Starbucks has not been best pleased about the unionization drives. With newly reinstated CEO Howard Schultz stating the company was “being assaulted by the threat of unionization”.
Schultz has also previously stated that unions are unnecessary at Starbucks.
As reported by The Independent, the CEO told the DealBook conference in mid-June: “I’m not anti-union, but the history of unions, and we have to talk about this, the history of unions is based on the fact that companies in the 40s, 50s, and 60s abused their people”.
Schultz continued: “We’re not in the coal mining business, we’re not abusing our people. But the sweeping issue in the country is that businesses are not doing enough and that business is the enemy”.
He added: “We don’t believe that a third party should lead our people and so we are in a battle for the hearts and minds of our people”.
However, unionized workers claim that Starbucks’ leadership has gone further than just talking about its stance on unions. In fact, as reported by the Guardian, Starbucks Workers United claims that Starbucks has retaliated by firing unionized workers, as well as refusing to increase the wages of unionized workers.
In response, over the summer, the union held 55 strikes across 17 states, as well as filed complaints with the National Labor Relations Board (NLRB).
New York City’s government weighs in
Now New York City’s Department of Consumer and Worker Protection (DCWP) has entered the fray. The government agency has filed a lawsuit against Starbucks in which it seeks the “reinstatement of a wrongly terminated employee”.
The lawsuit pertains to the city’s Fair Workweek Law that protects fast-food workers from firing workers or reducing their hours without “just cause” or legitimate economic reasons.
The DCWP’s investigation determined that Starbucks illegally fired long-time worker and union organizer Austin Locke in July less than a month after the Starbucks location where he worked voted to unionize.
Talking about the lawsuit, DCWP commission Vilda Verga Mayuga commented: “As we approach Labor Day, it’s important to remember that workers are the backbone of our city and deserve the right to organize to promote safer and fairer work practices.
“Any violation of the City’s Fair Workweek Law is unacceptable. DCWP stands ready to fight for the dignity and respect that all workers deserve from their employers.
“To all New York City fast food workers, if you believe you have been illegally fired from your workplace, do not hesitate to contact us.”
The DCWP is seeking for Locke to be reinstated, as well as to receive back pay. In addition, if they win the suit, Starbucks will pay civil penalties in accordance with the Fair Workweek Law.
Talking about the situation, Locke said: “Starbucks continues to wrongfully fire pro-union workers nationwide in retaliation for union organizing.
“Starbucks Workers United demands Starbucks rehire all illegally fired workers and put an end to their illegal union-busting campaign.
“We also demand that Starbucks come to the bargaining table and negotiate a contract with Starbucks Workers United.”
Starbucks has denied that it has acted illegally toward unions. The Financial Times reported that the company has said that fired workers weren’t let go because of their link with unions.
The employer told UNLEASH: “We do not comment on pending litigation. However, we intend to defend against the alleged violations of the New York City Just Cause Law.”
“We are listening and learning from the partners in these stores as we always do across the country.
“From the beginning, we’ve been clear in our belief that we are better together as partners, without a union between us, and that conviction has not changed.
“We respect our partner’s right to organize and are committed to following the NLRB process.”
The question remains, will a new CEO change Starbucks’ relationship with unions? Schultz is stepping down in April 2023, and a new CEO – Laxman Narasimhan – has already been chosen.
Talking about his appointment, Narasimhan commented: “I am humbled to be joining this iconic company at such a pivotal time, as the Reinvention and investments in the partner and customer experiences position us to meet the changing demands we face today and set us up for an even stronger future.”
