Starbucks Sued By US Labor Agency For Illegal Termination In Seattle Stores: Report

Starbucks Corporation SBUX has been sued by The National Labor Relations Board for refusing to reemploy 33 workers after reorganizing stores in Seattle.

Starbucks reorganized three downtown Seattle stores, including its flagship store in Pike Place Market, Reuters reported.

In the plea filed in Seattle federal court, NLRB said SBUX illegally forced 73 workers to reapply for jobs, going against the unionization efforts at one of the branches.

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Starbucks shares have been volatile year-to-date, trading as high as $114 and falling below $100 multiple times. 

By refusing to rehire, Starbucks "chilled employees' support for the union" at the other two stores "by sending a clear message about what would happen if they unionized," the NLRB said, which Reuters noted.

The NLRB petition also requires Starbucks to offer jobs to the 33 people it terminated.

At the beginning of May, Starbucks beat expectations for the second quarter, but the company maintained a cautious outlook, which has weighed on shares. The company sees sales growth in China to moderate in the second half of the year.

Price Action: SBUX shares are trading higher by 0.04% to $96.24 in the premarket session on the last check Friday.