Judge says Starbucks committed ‘egregious and widespread’ labor violations fighting unions
Starbucks has rejected claims it illegally retaliated against employees over unionization efforts
A federal administrative judge for the National Labor Relations Board (NLRB) issued a ruling late Wednesday that found Starbucks committed "egregious and widespread misconduct" that violated labor laws in its efforts to push back on unionization efforts at stores in New York.
Administrative Law Judge Michael Rosas issued a 200-page decision that spanned 35 allegations of unfair labor practices at 21 Starbucks stores in the area of Buffalo, New York. Among the labor violations by Starbucks were threats and spying against those involved with union organizing efforts, along with more strict enforcement of dress codes and other corporate policies that resulted in reprimands and, in some cases, termination of employment.
Rosas wrote that because of Starbucks’ "egregious and widespread misconduct demonstrating a general disregard for the employees’ fundamental rights," he was ordering the company to cease and desist from actions that violate their right to organize under the National Labor Relations Act. Starbucks will also be required to post a 13-page notice of its labor violations at locations around the country, which will remain up throughout the labor-organizing campaign and be distributed with the NLRB’s orders to supervisors and managers.
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The NLRB weighed in on a challenge brought against Starbucks by employees pushing to form unions at the coffeehouse's stores in New York. (AP Photo / Charles Krupa / File / AP Newsroom)
The judge mandated the reinstatement of seven workers who were fired for their union advocacy and also required Starbucks to pay financial restitution to another 27 workers who were harmed amid other violations, such as a refusal to grant time off. Rosas also ordered Starbucks to bargain with Starbucks Workers United, the labor union that is pushing to organize unions at Starbucks locations across the nation, at a number of locations and reopen a location in Cheektowaga, New York, that had been closed amid workers’ push to unionize.
A Starbucks spokesperson told FOX Business, "We believe the decision and the remedies ordered are inappropriate given the record in this matter and are considering all options to obtain further legal review."
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Starbucks workers, pushing for the formation of unions at locations in the Buffalo, New York, area, brought their claim to the NLRB. (Andrew Lichtenstein / Corbis via Getty Images / File / Getty Images)
Starbucks argues that it respects the rights of its employees to engage in legal unionization activities but that the individuals cited in the NLRB decision were subject to corrective action or separated from employment due to violations of corporate policies and procedures – not because of retaliation for union involvement. The company said it trains managers to prevent disciplinary measures from being taken against employees who exercise their right to organize.
Starbucks has also raised concerns that the NLRB’s decision could undermine elements of U.S. labor law that allow companies to share their perspective and information with employees amid debates over unionization.
Aside from the legal scrutiny of Starbucks’ handling of unionization efforts, the company is also facing pressure from Congress on the issue.
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Sen. Bernie Sanders has threatened to subpoena Starbucks interim CEO Howard Schultz, shown, to testify before a Senate panel with regard to Starbucks' actions against unionization efforts. (Reuters / David Ryder / File / Reuters Photos)
Senate Health, Education, Labor and Pensions (HELP) Committee Chairman Bernie Sanders, I-Vt., announced Wednesday that his panel plans to vote on authorizing a subpoena to compel the testimony of interim CEO Howard Schultz next week. Sanders said in the news release announcing the March 8 vote that the interim CEO has given the HELP committee "no choice but to subpoena him," claiming that Schultz "denied meeting and document requests" and "skirted congressional oversight attempts."
Starbucks pushed back on those claims in a response posted on Thursday, saying it is "shocked and deeply concerned" by Sanders’ announcement of the subpoena vote, adding, "Unfortunately, Sen. Sanders’ insistence on having Mr. Schultz participate in the hearing demonstrates that he is more interested in political theater than holding a productive hearing."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 102.46 | +0.95 | +0.94% |
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The company emphasized that it made Executive Vice President and Chief Public Affairs Officer AJ Jones II available to appear before the committee and that he is better positioned to address workforce matters than Schultz, who recently returned to serve temporarily as interim CEO and will depart from the role later this month.
Starbucks said that Jones met with Sanders’ staff on Feb. 17 and "continues to make himself available for further meetings with Chairman Sanders and his staff." It also offered to make other Starbucks executives available to testify before the committee, including the company’s general counsel and its vice president for partner and labor relations.
Fox Business’ Aislinn Murphy and the Associated Press contributed to this report.