Tensions have escalated significantly! Starbucks (SBUX.US) has filed 34 federal complaints, as reported by the union.
AInvestThursday, Jan 9, 2025 10:50 pm ET
1min read
SBUX --

Starbucks (SBUX.US) has been hit with 34 complaints this week from the union to the US Labor Relations Board, indicating the tensions between the company and the union are escalating.These complaints were filed by the Starbucks Workers Union to the US Labor Relations Board, alleging that Starbucks violated federal labor laws in its stores in 16 states and unfairly selected and fired employees for their union activities in the past few months.It is reported that the union had filed a complaint with the US Labor Relations Board on December 20 last year, alleging that Starbucks refused to negotiate fairly and held a five-day strike in hundreds of Starbucks stores before Christmas.Starbucks has denied these allegations by the union. Phil Gee, a Starbucks spokesperson, said in an email statement: "It's a strategy to take time to file such complaints, which will distract us from the progress we could have made."The current complaints, strikes, and labor disputes Starbucks is facing are similar to those it faced in 2022 and 2023, when prominent US lawmakers, government enforcers, institutional investors, and employees expressed concerns about the company's response to the union movement and the lack of progress in collective bargaining negotiations.These disputes began to subside when the union and Starbucks announced in February last year that they would work together to resolve their differences. Both sides reported making substantial progress in a series of multi-day negotiations about union contract terms until the negotiations broke down in late 2024 over wage issues. The union claimed that Starbucks would not immediately raise wages and that future annual wage increases would be only 1.5%. Starbucks said the union had made unsustainable proposals and prematurely ended negotiations.Wilma Liebman, former chair of the National Labor Relations Board, said the new labor relations board filings show that the relationship between Starbucks and the union is again heading in the wrong direction. She was one of the union allies who had urged to join the Starbucks board before the February agreement. She said introducing an external mediator would be beneficial for both sides.Wilma Liebman said: "It's crazy not to find a way to get back on track and complete the deal, rather than letting this situation deteriorate. They've made a lot of progress. They need some extra charm and extra skills to help them overcome the obstacles and complete the deal."#End of Polished Translation

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