In 2022, Starbucks interim CEO Howard Schultz was found to have violated federal labor law by making a coercive statement to a California barista who raised concerns about unionization. The National Labor Relations Board determined that Schultz’s comment, suggesting the barista could work for another company if unhappy at Starbucks, was unlawful. This decision highlights the ongoing tension between Starbucks and organized labor, especially as more workers at its stores unionize.
Schultz made the unlawful statement during a company event in Long Beach, California, where barista Madison Hall tried to discuss the benefits of unionization and alleged unfair labor practices at Starbucks. Schultz responded by asking why she was angry at Starbucks, stating that the event was not the appropriate venue for discussing union issues, and then made the coercive remark about working elsewhere. According to the NLRB, Schultz had an angry expression on his face during this interaction. The board upheld an administrative law judge’s decision from October 2023 regarding the incident.
Starbucks has stated that it disagrees with the NLRB’s decision and remains focused on training and supporting its managers to ensure respect for employees’ rights to organize. Despite Schultz stepping down as CEO in March 2023, he is still connected to the company as a lifelong chairman emeritus. The board highlighted Schultz’s status as a legendary leader, which may have exacerbated the coercive nature of his statement to the barista.
The coffee chain has been involved in numerous labor disputes since the first Starbucks location unionized in Buffalo, New York, in 2021. One high-profile case, Starbucks v. McKinney, went to the Supreme Court in June, where the Court ruled in favor of Starbucks after seven employees were fired for attempting to unionize. An NLRB administrative law judge previously cited Starbucks for egregious and widespread misconduct in its handling of employees involved in unionization efforts in Buffalo.
The 500th Starbucks location voted to unionize in Washington state on October 1, according to the union. In response to the NLRB’s decision, Starbucks was ordered to cease and desist from threatening to fire employees for unionizing activities and to post a notice of employee rights at all Long Beach stores. Starbucks Workers United applauded the NLRB for standing up for workers’ rights to organize and expressed a focus on the future to create a new path with the company.
Despite the ongoing challenges and controversies related to unionization at Starbucks, the company continues to navigate the complexities of labor relations. With Schultz’s history with the company and the ongoing efforts of workers to organize, the relationship between Starbucks and organized labor remains a significant issue. It is essential for Starbucks and other large corporations to uphold labor laws and support employee rights in the face of increased unionization efforts.
