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Starbucks resumes negotiations with Workers United union

by SuperiorInvest

starbucks and the union representing its baristas will resume contract negotiations on Wednesday, ending a prolonged stalemate.

The two sides' return to the negotiating table follows the February announcement that they had found a “constructive path forward” during mediation discussions related to litigation over the union's use of the Starbucks brand. It marked a major turn for Starbucks, which had spent the previous two years fighting Workers United and the broader movement to unionize its cafes.

About 400 corporate-owned Starbucks in the U.S. voted to unionize under Workers United since the first election in December 2021, according to a tally by the National Labor Relations Board, as of Monday. But none of those places, which represent a small fraction of the total U.S. footprint, have come close to a collective bargaining agreement.

Starbucks and the union, affiliated with the Service Employees International Union, previously met to negotiate, but those talks quickly ended in a stalemate. Both sides have accused each other of sabotaging the talks.

Starbucks had previously insisted on face-to-face negotiations, without representatives appearing via Zoom. The union has accused Starbucks of using that excuse as a delaying tactic. This time, about 150 union representatives will appear in person to negotiate, while several hundred more will intervene remotely outside of face-to-face meetings.

Agreements between stores will be negotiated and ratified separately, but the union could make proposals that could affect all of the Starbucks workers it represents. Workers United has widely pushed for higher wages and more consistent hours, among a variety of other priorities.

Labor laws do not require that the employer and the union reach a collective bargaining agreement, only that both negotiate in good faith. After a year, workers who lose faith in the union can apply for decertification, which delays negotiations.

The NLRB has 19 pending decertification petitions. Citing unfair labor practices by Starbucks, the labor board has rejected 18 other decertification petitions.

The company said it has also been negotiating with other unions that represent its cafes, such as the International Brotherhood of Teamsters, which is negotiating for a store outside Pittsburgh.

The resumption of contract negotiations comes a day after another significant moment for both Starbucks and the unions. On Tuesday, the company appeared before the Supreme Court to appeal a lower court's approval of an injunction sought by the NLRB to reinstate seven workers fired at a Memphis cafe.

Starbucks argued that other agencies seeking injunctive relief have a higher threshold for receiving them than the labor board. Experts have said the eventual Supreme Court ruling could weaken the NLRB and unions. The court is expected to release its decision this summer.

Starbucks could share more about union negotiations during its quarterly earnings call. The coffee giant is expected to report its results on Tuesday.

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