Beer Boycotts And More: The Teamsters Diversify Their 2024 Strike Portfolio: LRI INK

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Subject: Beer Boycotts And More: The Teamsters Diversify Their 2024 Strike Portfolio: LRI INK

February 1, 2024

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Will Starbucks’ Soul Searching Lead To The Decaffeination Of Workers United?

By Kimberly Ricci

Starbucks’ drink menu can be tweaked into an infinite variety of different drink possibilities. In the same way, there is no shortage of benefits from listening to workers’ concerns before they blend into a labor disaster.

That has been the critical lesson since Starbucks CEO Laxman Narasimhan took the reins in spring 2022, finding his work cut out for him on the labor front. His predecessor, Howard Schultz, had been openly combative, even engaging in fiery Senate testimony with a mix of denial and defensiveness, on the subject of unions after the company found itself caught off guard during the initial organizing wave during the pandemic.

Perhaps Starbucks had been too overconfident in its ability to withstand a union. After all, food-service unionization had been considered improbable at that time, given the difficulty of organizing high-turnover workplaces. Yet the lack of a playbook for management in how to respond to union activity exposed vulnerabilities for Workers United to insert its salts and go to town.

Now that 2024 has arrived, the dust has not settled at Starbucks, but Narasimhan appears to be slowing momentum for the union, which now claims 385+ wins – still a minuscule number compared to 9000+ U.S. locations. However, the NLRB has also piled onto the company with no shortage of tactics, and the company awaits Supreme Court deliberations on Starbucks’ handling of the so-called “Memphis Seven.”

The entire ordeal is the subject of an investigative report by Restaurant Business (paywall), which details Starbucks’ full-circle realization of why frontline baristas –suddenly deemed essential employees during the pandemic – began to explore unionization. 

A few quotes from CEO Laxman Narasimhan hit particularly hard:

On Starbucks’ early response:  “The company was naïve… So, mistakes were made.”
On the consequences of reacting to union activity without an existing game plan: “No wonder Howard said some of the things he did.”
On the struggle to find solid labor footing: “It’s a vicious cycle.”

The article details how Starbucks has spent the past year implementing policies that train supervisors how to respond to organizing activities. Executives have also invested extensive effort into looking at the working conditions inside Buffalo, NY cafes, leading them to be the first to unionize at Starbucks.

The simple reality of this complex situation is that Starbucks’ labor unease will not be easily solved, especially given that hostilities have been brewing for years. After all, workers acknowledged their new CEO by striking at 100 cafes. Narasimhan, to his credit, then doubled back to address worker morale. He began working regular barista shifts, and he now requires corporate workers to spend four hours per month behind the cafe counter so that they never lose perspective on labor issues.

These strategies point towards the coffeehouse giant taking accountability for missteps. Starbucks Board of Directors commissioned a report concerning Starbucks’ adherence to freedom of association and collective bargaining commitments in its Global Human Rights Statement, which included many of the findings mentioned in the Restaurant Business article. By requesting to reopen contract negotiations, Starbucks has also apparently decided to continue as a partially organized company in the hope that a revamped focus on baristas’ experiences will help them realize that a third party does not better serve their concerns.

Could this new outlook eventually lead to the extinction of Workers United within the company? Years will likely pass before that question finds an answer, but Starbucks has shown that righting a ship is much more complicated than making sure it never veers off course in the first place.

Blog Post

Leadership Bits and Bytes: January 2024

By Michael VanDervort

Welcome to "Leadership Bits and Bytes," where we distill the essence of today's business literature into a compact, insightful read for your easy consumption. This edition navigates the turbulent waters of leadership and organizational change. From McKinsey's eye-opening report on the transformative shifts in organizations to Bill George's sharp insights on America's leadership outlook for 2024 and the pivotal role of AI in labor relations to Adam Grant's innovative critique of brainstorming – we've curated a diverse mix of perspectives to keep you at the forefront of leadership trends.

Adam Grant: Why Brainstorming Doesn’t Work

In his TIME essay, organizational psychologist Adam Grant critiques traditional brainstorming. He argues that brainstorming often suppresses diverse ideas and leads to conformity. Instead, Grant recommends 'brainwriting,' a process where individuals generate ideas independently and then share and evaluate them anonymously in a group setting. This method has proven effective in various contexts, from corporate innovation to crisis management, as it encourages balanced participation and leverages collective judgment to identify and develop the best ideas. More here: Why Brainstorming Doesn’t Work.

The State of Organizations: Ten Shifts Transforming Organizations

The McKinsey report, "The State of Organizations 2023," explores ten significant shifts challenging organizations today, such as economic volatility, geopolitical instability, the aftermath of the COVID-19 pandemic, and rapid technological change. It addresses questions about organizational speed, remote work balance, mental health, and institutional capabilities. The report is based on a global survey of over 2,500 business leaders and includes insights from successful organizations. It concludes with four key points for companies to consider in adapting to these shifts, emphasizing the importance of setting a clear direction, focusing on talent cultivation, investing in leadership, and integrating these aspects for effective change at scale. You can read the full article on McKinsey's website: The State of Organizations 2023.

Bill George's Predictions: America's Best Leaders in 2024

Bill George's article on LinkedIn provides a comprehensive overview of America's best leaders across various sectors in 2024. He highlights individuals who have demonstrated exceptional leadership in their respective fields, including business, military, medicine, education, and non-profit organizations. Key figures include Satya Nadella (Microsoft CEO), Mark Milley (Chairman of the Joint Chiefs of Staff), Gianrico Farrugia (CEO of Mayo Clinic), Ángel Cabrera (President of Georgia Tech), Amy Edmondson (Professor at Harvard Business School), Glen Gunderson (President of YMCA of the North), and Sam Altman (CEO of Open AI). Each leader is recognized for their significant contributions and visionary approach. You can access the full article here: Bill George's Predictions: America's Best Leaders in 2024

Better Labor Relations Begin with AI

The article from O'Dwyer PR, "Better Labor Relations Begin with AI," authored by Eric Blankenbaker and Keisha McClellan, discusses the increasing role of AI in improving labor relations. The article outlines how AI can be leveraged to understand the narrative about a company, know the other side in labor negotiations, and test-drive communication strategies. It emphasizes AI's ability to analyze social media and media coverage, predict issues in negotiations, and develop effective communication strategies. The authors highlight AI's potential to level the playing field in labor relations, providing management with insights to meet the challenges of a newly empowered labor movement. The full article here: Better Labor Relations Begin With AI.

For managers and front-line supervisors, these posts provide brief and valuable insights on leadership and organizational change. These ideas can help managers, especially front-line supervisors, to:

Use ‘brainwriting’ to generate and evaluate ideas with their teams.
Adapt and thrive in a dynamic and uncertain environment with their organizations.
Learn from the vision and values of America’s best leaders in various sectors.
Improve their communication and negotiation skills in labor relations.

Blog Post

Unions Can’t Protect Workers From Layoffs, Although They Sure Will Deflect The Blame

By Kimberly Ricci

We recently touched upon how Teamsters President Sean O’Brien began the year by threatening multiple high-profile strikes following the significant wage boosts of last year’s UPS driver's contract. Of course, union bosses tend to (as the kids say) adopt a “shocked Pikachu” face when companies, faced with increased labor costs as a result of new labor contracts, are forced to cut corners somewhere to stay in business.

Sadly, that “somewhere” often leads to layoffs and closures, and unions react by accusing management of corporate greed but can do very little to prevent layoffs. And don’t expect unions to accept any responsibility.

Since we already mentioned UPS, this week brings news of the parcel delivery company announcing that 12,000 workers will be axed as the company hopes to cut costs by $1 billion. There are many causes for this downswing. Unsurprisingly, UPS is looking to cut costs, which they blame on faltering demand for shipping and higher union labor costs.

According to the Wall Street Journal, these cuts are primarily targeted at management staff worldwide as well as contract workers, UPS executives said Tuesday, adding that those jobs weren’t likely to return even when business picks up. While no union employees are involved in this round of layoffs, O’Brien filed unfair labor charges a month ago when the company laid off 35 union members at the Centennial hub in Kentucky.

Layoffs have been plentiful in other industries, including the U.S. news field, which recently experienced a rough week amid a protracted downswing in advertising dollars. This includes jobs lost at Time Magazine, National Geographic, and the Los Angeles Times, which laid off 100+ workers. Here are some other particularly fraught cases:

Sports Illustrated announced mass layoffs and the possible shuttering of the entire 70-year-old publication after owners declined to renew a multi-million dollar publishing license. In response, the NewsGuild of NY filed a labor grievance, and union President Susan DeCarava accused the company of “an engineered dispute” to “unlawfully target our members” for termination.
The Pitchfork Union and NewsGuild of NY issued a similar joint statement after Condé Nast folded the music publication into GQ magazine as part of a larger corporate restructuring, through which 5% layoffs were announced. As a result, several members of the Pitchfork Union were laid off this month due to redundancy.
Writers Guild of America East members authorized a strike against parent company G/O Media over stalled negotiations for satire website The Onion’s contract, set to expire on Jan. 31. The union is demanding job security and raises, although again, we shall see if across-the-board raises end up triggering layoffs.

Likewise, the tech industry is seeing a similar upheaval, including mergers. Such is the case for Microsoft’s recent announcement of layoffs of 1,900 video game workers, leading to lost jobs for CWA members at ZeniMax, Raven, and Activision Blizzard. One member of ZeniMax Workers United-CWA issued a statement that acknowledged, “Union representation can't always protect against layoffs,” however, the union still mentioned “layoff protections,” so those false promises look set to continue.

Blog Post

Beer Boycotts And More: The Teamsters Diversify Their 2024 Strike Portfolio

By Kimberly Ricci

Remember when the Teamsters took aim at ice cream supply lines a few years ago? They were hinting about coming for the beer back in 2022, too. Now, it’s early 2024, and the union has made it their mission to circle back to an American guilty pleasure by threatening to turn off those taps.

Of course, this union has threatened prior walkouts on beer distributors, but this time, a national strike is on the table. Teamsters president, Sean O’Brien, feels ready to rumble and peacock-ish after negotiating a new UPS contract under strike threat, even if the results were not as great as advertised and are likely the cause of planned layoffs. 

Still, after union members authorized a strike in December, O'Brien is sounding the alarm and promising that Anheuser-Busch will experience a “full-scale” walkout and a “nationwide boycott,” absent a complete turnaround in talks with parent company AB InBev. The union wants “substantial” raises, better retirement benefits, and more job protections. And to stress that he means business, O’Brien walked out of negotiations on January 25. 

The current contract expires on February 29, which could cause a beer draught sometime in March for lovers of Budweiser, Bud Light, Busch, Michelob Ultra, and Stella Artois. What will come of these contentious talks? Take a guess and pull up a spectator seat for the largest contract battle of the season so far.  

The Teamsters are currently active on the threatened strike front in other contexts, too:

U.S. Foods drivers serving the Detroit Public School District have voted unanimously to authorize a strike, which could eventually extend to other Michigan and Indiana school districts that rely on the company as their sole food distributor.  Update: This was settled yesterday with a tentative 3-year agreement.
California State University narrowly averted a five-day strike by 1,100 Teamsters-represented trade workers at 22 campuses after reaching a tentative agreement on a 3-year contract. This saved the semester’s first week of classes, but the university is still staring down the possibility of a strike from nearly 30,000 professors, librarians, and coaches of the California Faculty Association.
Sun County Airlines flight attendants, who are members of Teamsters Local 120, are making noises about a potential strike while demanding higher wages as contract talks heat up. During the last round of negotiations, the union rejected the May 2023 contractual offer from the company.

As if that wasn’t enough to grab the public’s attention, O’Brien might be playing with fire on the political front, too. He has reportedly “embarrassed” some union members by repeatedly meeting with Donald Trump and flirting with the idea that the Teamsters could formally endorse the ex-president. 

It’s an unexpected stance, given that most unions, including the UAW, have opted to endorse Biden while praising his commitment to Big Labor.

Did you have the Teamsters president threatening mega-strikes and jumping into the deep end of the political swimming pool alongside Shawn Fain on your bingo card? Welcome to 2024. It could be a bumpy ride.

Blog Post

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Subject: Beer Boycotts And More: The Teamsters Diversify Their 2024 Strike Portfolio: LRI INK