A coalition of unions has nominated three directors for
Starbucks
‘ board, as the coffee chain remains under pressure to improve workers’ pay and conditions.
In a Securities and Exchange Commission filing Wednesday, the Strategic Organizing Center named three candidates for election to the
Starbucks
(ticker: SBUX) board of directors at its 2024 annual shareholders meeting.
The Strategic Organizing Center is a coalition of unions representing over 2 million members—including the Service Employees International Union, which represents members of Starbucks Workers United. The Strategic Organizing Center says change is needed at the board level to help Starbucks manage the demands coming from the union, as opposed to fighting with union members.
“Regardless of one’s personal views on whether Starbucks should support or continue to resist the unionization of its store employees, the Board’s current approach likely jeopardizes its ability to fulfill its fiduciary duties to investors and has resulted in arguably one of the most glaring and destructive examples of human capital mismanagement corporate America has seen,” the labor group said in the filing.
The group didn’t immediately provide additional comments, including the size of its Starbucks investment, to Barron’s Wednesday.
Starbucks pointed Barron’s to its own comments in response to the board nominations. In a news release dated Tuesday, Starbucks said it has invested nearly $9 billion over the past three years to improve the experience of its workers—which it calls “partners”—and the overall store experience—”with more than one third of that investment going directly to the partners through wage increases, training, new innovative equipment and technology.”
“Coupled with higher wages and the expansion of hours, these investments have not only resulted in lower turnover—which is now below prepandemic levels—but we have also increased hourly total cash compensation by nearly 50% since fiscal year 2020,” Starbucks said.
The cafe chain has been facing strikes and walkouts from union members in recent months. Workers are demanding higher pay, more affordable healthcare, and better staffing conditions. The company is also facing allegations of unfair labor practices from regional offices of the National Labor Relations Board, the federal agency that oversees worker rights to organize. Starbucks has previously said those charges lack merit or are unfounded.
The Strategic Organizing Center’s nominees include Maria Echaveste, a former senior White House official and corporate attorney; Joshua Gotbaum, an expert in corporate governance and change; and Wilma Liebman, an expert in labor management, employee relations, wage negotiations, public policy and law.
Shares of Starbucks were rising 0.2% Wednesday to $103.93. The stock has gained 4.8% this year.
Write to Angela Palumbo at [email protected]
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