Starbucks Corp. (NASDAQ: SBUX) surged in early trading session on Tuesday as the firm releases that the labor union representing some of its outlets has rejected in-person negotiating meetings in favor of hybrid negotiations. Starbucks Workers United, which represents thousands of baristas in about 200 cafes across the United States, conducted unauthorized virtual broadcasts of bargaining sessions without prior agreement from all parties, the company said in a statement to Reuters on Monday.
The company said that Workers United is asking for a seat at the table, we’re simply encouraging them take their seat in-person at the negotiating table, as required, to move the bargaining process forward.
This comes after National Labor Relations Board (NLRB) prosecutors alleged that Starbucks violated labor law by refusing to engage in bargaining if some workers were attending remotely via videoconference, according to a Bloomberg report.
“Now that it’s apparent we have the right to bargain utilizing a virtual component, we hope Starbucks is ready, too,” Tyler Keeling, a leader of the Starbucks Workers United in California stated.
The NLRB did not respond to Reuters’ request for comment.
Former Starbucks CEO Howard Schultz will testify before the United States Senate Health, Education, Labor, and Pensions Committee on March 29, after previously refusing to come and address concerns concerning the company’s labor law compliance.
Keeling said that hearing this just days before Howard Schultz is about to testify before the HELP committee is enormous. Especially because he has explicitly stated that Starbucks is refusing to deal with us because of the Zoom screen.
New CEO of Starbucks (SBUX) Advices Care For Employees Â
Laxman Narasimhan, the new CEO of Starbucks (NASDAQ: SBUX), told staff on Thursday before the coffee chain’s annual meeting that the firm aims to be “a different sort of company” that values its frontline employees. Starbucks has come under fire for its hostility to union organizing.
In a letter to workers, Narasimhan said Starbucks’ performance was strong but the company needs to strengthen its health. “We must care for” customer-facing staff, he wrote.
“We want to be a different type of company functioning in a different kind of world,” he said, adding Starbucks plans to “reinvigorate” its staff culture.
His remarks come the day after Starbucks employees walked out of work at 100 locations around the country, and a video uploaded by the union on social media showed hundreds of activists marching in protest outside the company’s headquarters.
The former PepsiCo and Reckitt Benckiser executive, who joined the company in October, took over on Monday as Howard Schultz stepped down from his third stint as CEO of the chain he helped turn into a global coffee behemoth. Narasimhan must contend with the company’s divisive record on labor unions, an issue of increasing concern to politicians and shareholders.
The former PepsiCo and Reckitt Benckiser executive took over on Monday when Howard Schultz stepped down from his third term as CEO of the coffee chain he helped build into a worldwide coffee juggernaut. Narasimhan must grapple with the company’s contentious record on labor unions, a matter of rising concern to legislators and shareholders.
