Subject: Starbucks’ Tall Order Of Negotiating With 400+ Stores: Cunning Or Chaotic?: LRI INK

April 25, 2024

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Starbucks’ Tall Order Of Negotiating With 400+ Stores: Cunning Or Chaotic?

by Kimberly Ricci

Last December, Starbucks requested to reopen negotiations with Workers United. This move arrived a full two years after the first Starbucks cafe unionized and over a year after contract negotiations stalled out. In the interim, a trickle of cafes continued to unionize, and Workers United now claims 420+ wins, which remains a tiny number compared to the 9,000+ U.S. Starbucks locations. Yet 420 stores still add up to about 10,000 baristas in limbo without a single contract to the union’s name.


This is obviously not a fantastic union performance. Still, sadly, Starbucks hasn’t handled this saga smoothly, perhaps because they were caught off guard without a plan on how to respond to unions. Ex-CEO Howard Schultz initially responded with a combative stance, which led to the Starbucks Board of Directors scrutinizing the saga. Then the company engaged in public soul-searching and announced that bargaining would resume in late April, possibly with the goal of decaffeinating Workers United through a good-faith gesture of handing out raises and perks that were previously withheld from unionized stores.


Yet if CEO Laxman Narasimhan hoped that a return to bargaining would slow the company's unionization, that hasn’t happened. In March and April, Starbucks Workers United's victories trended upward again.


Last week, Workers United also asked allies to #ButtonUp4Bargaining by wearing buttons to spread awareness of the massive bargaining session. So, will Starbucks regret its request to reopen contract negotiations? That remains to be seen, but let’s discuss the logistics of the impending bargaining session:


The size of the meeting: Although this involves 400 stores, there won’t be quite that many representatives on hand. However, 150 invited workers randomly selected to attend via a lottery will form an unquestionably large bargaining committee. The atmosphere might be so chaotic as to impede progress.


The goal: To establish a “foundational framework” for collective bargaining for each individual store to have their contract be separately negotiated. The agenda will include discussing “a fair process for organizing and resolving litigation.”


The timeline: The length of these sessions, which will take place in Atlanta at an unspecified location, has not been announced.


The impact elsewhere: Employers will want to remain aware of the outcome of the talks being used as a model. The results may prompt union pressure on companies to be more open to taking a union neutrality stance or voluntarily recognizing organizing by card check.


More complications on the horizon: Hundreds of ULPS at the NLRB and other litigation must still be sorted out. That includes a pending Supreme Court decision on Starbucks’ terminating the so-called “Memphis Seven.” The union has also lodged around 430 ULP charges against the company, and unresolved appeals of board rulings remain. Starbucks and the union also sued each other over the company logo, landing in a political minefield surrounding the Israeli-Palestinian conflict.


A takeaway: Starbucks found itself unprepared for the wave of unionization that hit them. Yet few people could have imagined that this situation could have spiraled so far because, until recently, the retail and food service industries remained relatively immune from union activity.


And as we await the upcoming negotiations, there remains no time like the present for companies to prepare a playbook for warding off union activity.

 

Higher Education Might Be Broken, But Unions Are Not The Solution

by Kimberly Ricci

Like the rest of us, student workers at universities are feeling the rising cost of living. Their experience is likely heightened by the crush of increasingly expensive tuition in 2024. Unions, however, will not solve the problems that student workers face—quite the opposite, as it turns out.

 

As we have previously detailed, a wild assortment of unions have gone poaching in higher ed to capitalize upon understandable Gen Z frustrations. It’s concerning to see these workers still willing to place their faith in Big Labor despite sellout deals and broken promises that follow.

 

Sadly, reality is waiting in the wings. Let’s take a look at recent higher-ed union activity of note:


  • Princeton University became the final Ivy League institution to see graduate students file for a union election. If successful, they will join the United Electrical, Radio, and Machine Workers.

  • Marquette University workers are beginning to organize (for the second time) to try and join the Communication Workers of America.

  • The University of San Diego’s non-tenure track instructors, including visiting professors and adjuncts, filed for a vote to join the SEIU.

  • Harvard University’s labor situation is mixed. This month, non-tenure faculty overwhelmingly voted to join the UAW. However, the Harvard Union of Residential Advisors (RAs) launch has divided workers, with many expressing skepticism ahead of a vote. Some RAs alleged that the union had used intimidation tactics and deceptively poor communication while organizing workers.

  • Boston University grad students went on strike in late March and were joined by Boston University Residence Life workers after SEIU contract negotiations ended. A progressive publication called out the union for refusing to accept the university’s reasonable salary bump offer even though current grad-student funding will not cover the union’s salary demands, leading to fewer available jobs and perks for these grad students.

 

That reality has been rearing its head elsewhere after unions targeted higher-ed workers. After the UAW’s 2023 University of California strikes, UC began to cut graduate admissions programs and eliminate student-worker positions to make ends meet due to higher labor costs. At Philadelphia’s Temple University, striking grad students were deemed ineligible for free tuition since the university could no longer afford that $20,000 annual benefit following a new union contract. 


In the above cases, workers got the shaft while unions received their dues money. Unions are attractive to students, but they don’t consistently deliver what they promise, and unions are not the key to fixing complex systemic issues as these students are learning.

Stories You May Have Missed:


Alabama House passes bill requiring union elections to be held in secret

Link


U.S. Supreme Court leans toward Starbucks in the case of pro-union workers

Link


Disney Vacation Club sales reps seek union election in Anaheim 

Link


Open letter to Teamsters General President O'Brien: We demand answers on layoffs!

Link


Mercedes-Benz workers to vote on UAW membership in May 

Link



About Labor Relations INK

Labor Relations INK is published weekly and is edited by Labor Relations Institute, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


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Contributing editors for this issue: Greg Kittinger, Michael VanDervort, and Kimberly Ricci.


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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years, LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

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