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Howard Schultz offers insights on unionizations

Alice Blake on February 23, 2023

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Howard Schultz – It wasn’t always like it is now, but Starbucks has grown to become one of the top coffee businesses in the US.

The coffee business had a financial crisis in 2008 that devastated every other sector of the economy.

Former CEO of Starbucks from 1987 until 2000, Howard Schultz, had returned to assist the business.

He led Starbucks as CEO for over ten years until giving over the reins to Kevin Johnson, after being responsible for getting the business back on its feet.

Johnson did, however, leave the office in March 2022, which led to Schultz’s comeback.

He handled a rising unionization dilemma, another Starbucks crisis, last year.

An ominous sign for Starbucks

Howard Schultz spoke with CNN’s Poppy Harlow in February on the development of the union, its ties to China, and the American economy.

Schultz made it clear that the union’s efforts had nothing to do with his return to the company.

He did admit, however, that the labor movement was a preview of changes to come at Starbucks.

“It’s my belief that the efforts of unionization in America are in many ways a manifestation of a much bigger problem,” said Schultz.

“There is a macro issue here that is much, much bigger than Starbucks.”

Five months before his return, in December 2021, the first Starbucks chain to unionize cast a vote.

Moreover, Howard Schultz declared that he will serve as the company’s acting CEO for a third and last time.

Even so, Schultz was concerned about the unionization campaign before he returned to the business.

He addressed an open letter to the “partners,” the term the firm uses for its employees, a month before the first Starbucks chain voted.

“No partner has ever needed to have a representative seek to obtain things we all have as partners at Starbucks.”

“I am saddened and concerned to hear anyone thinks that is needed now.”

A fight for rights

Workers that are unionized continue to struggle for a number of reasons notwithstanding the letter, such as fixed schedules, preserving benefits for part-timers, and more.

The union also wants the business to formally adopt the fair election principles in order to safeguard employees’ freedom to organize without fear of reprisal.

Howard Schultz’s antipathy to the union has become stronger since resuming his duties as CEO.

The fight for unionization grew more heated during that time.

The corporation was accused by the union leadership of refusing to engage in formal negotiations, endangering their benefits, and engaging in union-busting tactics.

The claims have been refuted by Starbucks.

Charges from both sides

The union charged Starbucks with hundreds of unfair labor practices.

As a form of retaliation, the coffee company filed its own unfair labor charges against them, alleging that the union was impeding talks.

The NLRB discovered many instances when the business improperly intimidated and fired employees who were engaged in union activity.

Starbucks must discontinue the illegal practice of firing workers who support the union, according to a recent court ruling.

The company contends that the action was unjustified and that it makes an effort to abide with the law.

Senator Bernie Sanders and members of the Senate Health, Education, Labor, and Pensions Committee have requested testimony from Howard Schultz on the company’s adherence to labor rules for an upcoming hearing.

Starbucks’ chief public affairs officer AJ Jones II will attend the hearing as Schultz turned down the request.

The movement’s progress

In mid-February, the NLRB certified that 282 stores had voted in favor of unionization, while just 56 did not.

Just a small percentage of the nearly 9,3000 Starbucks chains run by American companies have opted to unionize.

The statistics show that most Starbucks partners are OK with the current state of affairs, according to Howard Schultz.

In any case, the union sees expansion as a show of support from the workforce.

“The fact that Starbucks workers are continuing to organize and win shows just how much workers need and desire a union,” said the union.

Starbucks has established a good reputation as a forward-thinking business throughout the years.

Howard Schultz had a key role in creating the impression by providing staff with:

Company stock
Employee health insurance
Tuition reimbursement

While he prepares to leave his job as CEO, his image is put in jeopardy, in part because of the company’s hostility to the union.

Howard Schultz isn’t giving up despite the criticism.

Lost trust

When Howard Schultz returned to Starbucks in 2022, he spent time speaking with staff members during a “listening tour” to help him create a new business strategy.

He said that the business had become disorganized.

“I’ve talked to thousands of our Starbucks partners,” Schultz said.

“I was shocked, stunned to hear the loneliness, the anxiety, the fracturing of trust in government, fracturing of trust in companies, fracturing of trust in families, the lack of hope in terms of opportunity.”

According to Schultz, American businesses deal with unionizations because employees are more angry with the situation than the company.

Confusion Among Union Workers as Starbucks Remains Ambiguous in Medical Coverage Inclusion

Jerry Cooper on July 11, 2022

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Starbucks was among the companies that updated its medical coverage after the Supreme Court recently overturned the Roe v. Wade decision.

Despite the encouraging update, the company’s statement did not confirm whether workers at unionized locations would be included, sparking outrage among employees.

Acting executive vice president of Starbucks’ Partner Resources Sara Kelly said that federal labor laws required collective bargaining to determine the unionized workers’ wages, benefits, and working conditions.

“This means Starbucks cannot make promises about any benefits for workers currently represented by unions,” she explained.

In Knoxville, Tennessee, unionized barista Maggie Carter told Bon Appétit that she is still uncertain about the availability of the update benefit.

Starbucks previously announced its plan to add the benefit in May, and Carter is still yet to get an answer from her manager despite asking about it that month.

Carter believes Starbucks’ ambiguity is an attempt to confuse and intimidate its unionized employees.

“This shows what Starbucks is willing to leverage in this fight,” said the barista. “It makes me feel disgusted that they’d dangle abortion over people’s heads as if it’s a cat toy when women are literally losing their rights to bodily autonomy. It just feels dystopian.”

However, a Starbucks spokesperson confirmed that the benefit would be available to all employees, including those in unionized stores.

“Because this is an expansion of existing benefits, if you are a Starbucks partner with Starbucks healthcare benefits, the travel expense cost for these kinds of medical procedures is covered, regardless of union status,” the spokesperson said.

Rebecca Givan, Ph.D., an associate professor of labor studies and employment relations at Rutgers University in New Jersey, urged Starbucks to clarify their statement to unionized employees.

“I think they’re trying to burnish their progressive reputation while scaring their employees away from unionizing by suggesting that none of their benefits are secure,” said Givan, who is not associated with the company’s unionization process.

The United States has seen more unionization efforts since late last year, with companies like Starbucks, Amazon, and Apple witnessing more of their employees organizing.

Since the unionization began, Starbucks has been particularly vocal against these efforts, suggesting the employees should speak directly with them instead of forming organizations.

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