U.S. Labor Agency Pushes For Reopening 23 Starbucks Stores Amid Unionization Dispute

The U.S. National Labor Relations Board (NLRB) is taking action against Starbucks Corp, aiming to mandate the reopening of 23 stores that were allegedly closed as a strategy to deter union organization efforts, according to Reuters. 

This move underscores the growing influence of unions and the concern they are generating among large corporations. Of these locations, eight had already formed unions. The push for unionization at Starbucks has seen workers at over 360 out of approximately 9,300 U.S. stores vote to unionize since 2021, amidst over 100 complaints lodged against the company for purportedly engaging in illegal anti-union practices.

While Starbucks maintains its innocence and claims to honor employees’ rights regarding unionization, the NLRB complaint highlights the company’s lack of communication with Workers United, the union leading the organizing efforts, and the absence of bargaining opportunities prior to the closures. 

The NLRB is calling for the immediate reopening of the affected stores, rehiring of staff, negotiations with the unionized stores, and financial compensation for the workers who suffered loss of wages and benefits.

This legal challenge coincides with Starbucks releasing a shareholder-requested report on its labor practices, conducted by an independent consultant. Although the report suggests Starbucks could enhance its communication about the union efforts, it concludes that the company has not systematically violated labor laws as part of an anti-union strategy. 

Notably, this follows a separate NLRB ruling in July where a judge determined that Starbucks had unlawfully closed a unionized store in Ithaca, New York, a decision which Starbucks is currently appealing.