Coffeehouse Compromise: Starbucks Shareholder SOC Pulls Director Nominations Amid Breakthrough In Labor Relations

The Strategic Organizing Center (SOC), a shareholder of Starbucks Corporation SBUX, has withdrawn its director nominations.

The decision comes as the SOC believes that the recent agreement reached by Starbucks and Workers United represents meaningful progress that will benefit all stakeholders.

The SOC started its campaign for change at Starbucks last November, believing that the coffee giant’s response to its employees’ attempts to unionize was misguided. It said Starbucks’ strategy overseen by the Board of Directors had materially damaged the value of the company’s brand.

Last Tuesday, Starbucks and Workers United agreed to work together to reach a collective bargaining agreement for its stores and partners, resolve litigation, and provide a fair process for workers to organize.

The SOC noted that the latest agreement represented a huge shift in Starbucks’ labor relations strategy and a major step forward for all involved.

The SOC’s director nominees were Maria Echaveste, Wilma Liebman, and Josh Gotbaum.

Last week, Starbucks issued a statement that proxy advisory firm ISS has recommended shareholders vote for the company’s director nominees. 

In addition, proxy advisory firm Glass Lewis also recommended shareholders vote on the white proxy card for each of the 11 Starbucks director nominees in connection with the Annual Meeting of Shareholders, scheduled for March 13, 2024.

Price Action: SBUX shares are trading lower by 0.53% at $91.97 on the last check Tuesday.

Image: Shutterstock/ Harun Ozmen