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A US labour union group has ended a campaign for board seats at Starbucks, citing progress on contract negotiations at the coffee company ahead of its annual shareholder meeting next week.
The Strategic Organizing Center, a coalition of labour groups that had nominated three people for Starbucks’ board, on Tuesday said the company and the Workers United union had agreed to work together to reach collective bargaining agreements for represented stores and employees.
A handful of Starbucks baristas first voted for union representation in late 2021. Nearly 400 of Starbucks’ 9,000 US stores have since joined Workers United in a campaign that is widely credited with helping to revive the fortunes of the US labour movement.
Negotiations to agree an inaugural contract were at an impasse until recently amid tensions between the union and the company. Baristas filed more than 700 unfair labour practice charges with the National Labor Relations Board, which found the coffee maker violated the law in 48 cases.
Starbucks had also sued the union, accusing it of copyright and trademark infringement after it included a logo that looks like Starbucks’ in pro-Palestinian social media posts, which sparked a boycott against the brand. Workers United countersued.
But last week, the company and Workers United said they had reached a “framework” to achieve a contract and resolve the lawsuits.
SOC said: “We believe that by and large shareholders are optimistic the company has committed to these changes in good faith and intends to begin to repair its relationship with its workers.”
“We feel that now is the time to acknowledge the progress that has been made and to allow the company and its workers to focus on moving forward,” it added. “As such, we are withdrawing our director nominations.”
The SOC had been able to propose new directors after a rule change at the Securities and Exchange Commission that made proxy campaigns more accessible.
Starbucks on Tuesday said it appreciated SOC’s decision. The company in late February said it would begin discussions on collective bargaining agreements, “including a fair process for organising, and the resolution of some outstanding litigation”.
Last week, the influential proxy advisory firm Institutional Shareholder Services, sided with Starbucks in recommending investors vote against SOC’s board nominees.
Starbucks’ shares are down 12 per cent over the past 12 months.
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