Starbucks Labor Law Violations

by Casey Seaman, Staff Writer

Starbucks has become a coffee empire that has touched almost every corner of the United States, from busy city street corners to college campuses. Though most know Starbucks for their coffee, the company has increasingly found itself in the news for different reasons. In the last year, Starbucks has been accused of labor law violations, specifically pertaining to their interference with employees attempts at union organization.

The National Labor Relations Board (the “NLRB”) has issued over 19 complaints against Starbucks for violating Union Rights.^[1] The NLRB, which is the federal agency vested with the power to safeguard employees’ rights to organize and to determine whether to have unions as their bargaining representative, filed complaints against Starbucks for violations of the National Labor Relations Act (the “NLRA”).^[2] The NLRA was passed in July 1935 and guarantees employees the right to “self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid protection.”^[3]

In light of the increased complaints against Starbucks, more than 230 Starbucks locations have voted to join the Starbucks Workers United Union since late 2021^[4]. Starbucks Workers United is a collective of Starbucks Partners across the United States who are organizing their workplaces with the support of Workers United Upstate, a union with experience building barista power.^[5] Starbucks Workers United believes that by organizing, they will be able to raise standards of living for their workers and set an example of what worker power can do in the barista and coffee industry.⁴

As the rate of labor organization has increased, Starbucks has tried to fend off union efforts. According to Starbucks Workers United, Starbucks has fired more than 75 union leaders since December 2021.^[6] Barista Austin Locke was fired just days after he and his co-workers fought a campaign to unionize their Queens Store, for what he believes was retaliation for his union activity.^[7] In May, Starbucks CEO Howard Shultz announced that the company would raise pay and double training hours at more than 10,000 corporate owned stores.^[8] However, these changes wouldn’t apply to the recently unionized locations because they “don’t have the same freedom to make these improvements at locations that have a union or where union organization is underway.”^[9] Also in May, the NLRB’s Buffalo region issued a complaint accusing Starbucks of illegally firing six workers and of retaliation against more than a dozen other employees in the western New York area.^[10] In June of this year, the U.S. District Court for the Western District of Tennessee ordered the reinstatement of seven Starbucks baristas who were fired after speaking to a news station about their union campaign. ^[11]

The NLRB has also recently filed a lengthy complaint against Starbucks alleging that they have illegally withheld wages and benefits from unionized baristas, such as faster sick time accrual benefits, career growth opportunities, and expanded credit card tips.^[12] The NLRB has stated that the denial of benefits and raises to union workers by Starbucks was intended to discourage union organizing.^[13] The complaint outlined remedies sought by the NLRB, such as back payments and benefits for unionized workers and for Schultz to read a statement to workers about their union rights.^[14]The NLRB is also requesting that Starbucks produce a copy of all payroll records, timecards, and personnel reports so it can analyze the exact amount of back pay owed to workers.^[15] The remedy outlined in the complaint further requires that the company send an apology letter to affected baristas and conduct a training for managers and supervisors on worker’s rights and labor law.^[16]

Despite these allegations, Starbucks has repeatedly denied any “union busting.” Starbucks spokesperson Reggie Borges stated that the claims of retaliatory firings are false and that “a partners interest in a union does not exempt them from the standards we have always held.”^[17] Further, in response to the U.S. District Court for the Western District of Tennessee’s holding in June, Reggie Borges stated that the company “respects the union process and will bargain in good faith,” but they disagreed with the Judge and planned to appeal the ruling.^[18] However, the NLRB continues to disagree with Starbucks and is currently alleging more than 200 labor law violations inclusive of two dozen types of unfair labor practices against Starbucks.^[19]

^[1] https://www.washingtonpost.com/business/2022/08/24/starbucks-raises-nlrb-complaint/

^[2] https://www.nlrb.gov/about-nlrb

^[3] https://www.archives.gov/milestone-documents/national-labor-relations-act

^[4] https://www.washingtonpost.com/business/2022/08/24/starbucks-raises-nlrb-complaint/

^[5] https://sbworkersunited.org/new-page-2

^[6] Id.

^[7] https://www.vice.com/en/article/epzz9z/starbucks-union-busting-stores-protest

^[8] https://www.washingtonpost.com/business/2022/08/24/starbucks-raises-nlrb-complaint/

^[9] Id.

^[10] Id.

^[11] Id.

^[12] Id.