Starbucks' Labor Practices Under Microscope - No Anti-Union Practices Found: Report

Zinger Key Points
  • Investigation finds Starbucks didn't engage in anti-union practices during U.S. store employee negotiations.
  • Starbucks advised to improve union engagement approach, despite no evidence of obstructing unionization efforts.

Starbucks Corporation SBUX has reportedly not engaged in anti-union practices during its contract negotiations with union employees at its U.S. stores. 

In response to employee and labor group complaints submitted to the National Labor Relations Board (NLRB), the coffee chain appointed labor relations specialist Thomas Mackall in March, following a request from shareholders to examine its labor practices, according to a news report by Reuters.

Workers accused Starbucks of participating in "union-busting" activities amid their pursuit of improved wages, staffing, and schedules, the report read.

The investigation, carried out between July and September, urged Starbucks to enhance its approach to unionization and update its Global Human Rights Statement. 

However, it found no evidence of the company obstructing employees' freedom to form unions.

"The assessment was direct and clear that while Starbucks has had no intention to deviate from the principles of freedom of association and the right to collective bargaining, there are things the company can, and should, do to improve its stated commitments," said Mellody Hobson, independent chair of Starbucks, which Reuters note.

"If the company's efforts at dialogue over the last few days are sincere, we are ready to talk," the union said, as noted by Reuters.

Read Next: Starbucks CEO Wants To Focus On Growing Profits, Unveils Strategy

Price Action: SBUX shares are trading higher by 0.69% premarket to $98.79 on the last check Thursday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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