Starbucks Illegally Fired Union Organizer, NLRB Finds

Starbucks illegally fired a Colorado barista for union organizing and must rehire her, according to a recent decision from a National Labor Relations Board (NLRB) administrative law judge.

In the Dec. 19 ruling, the judge also concluded that Starbucks threatened employees with stricter enforcement of work rules because of their union activities, threatened employees with surveillance of their union activities and interrogated employees about their union activities. Such conduct by an employer is illegal under the National Labor Relations Act (NLRA).

The Seattle-based coffee chain has about 381,000 employees. “We firmly disagree with the administrative law judge’s recommendations and intend to file exceptions—or an appeal—in this matter,” said Rachel Wall, a spokesperson for Starbucks. The barista “was separated following progressive discipline for violations of established safety, security and cash-handling policies—not in retaliation for their participation in, or support of, any concerted union activities.”

We’ve gathered a group of articles on the news from SHRM Online and other trusted sources.

Starbucks Must Remit Back Pay

Starbucks was ordered to rehire the barista at the same position and pay scale, issue back pay and cease any anti-union activity. Nearly 400 Starbucks stores are unionized now, but none of them have a contract.

In the fall of 2022, the barista in this case was notified that she allegedly mishandled counting money in the store's safe, then received a final notice, despite not having any prior infractions during her employment. She was accused of leaving the door unlocked and cash unattended.

She was fired one month later, the day after she and other workers at the store joined a nationwide strike for contract negotiations. The NLRB judge found that management didn’t adequately train her on cash handling policies, and based on her union activity, she was treated differently than other workers who had similar violations of work rules.

(CBS News)

Union Organizing Continues

In April 2022, the barista's store in Superior, Colo., became the first Starbucks outlet in the state to unionize amid a national wave of organizing. At least 10 other stores in Colorado have unionized since.

The company has faced dozens of union-busting allegations over the past year, which it has denied. The latest ruling is at least the second federal decision stating that Starbucks illegally targeted unionized workers in Colorado. Baristas in Denver won a similar ruling in February.

(Colorado Public Radio)

Legal Violations in Wisconsin

On Oct. 17, 2023, the NLRB concluded that Starbucks unlawfully threatened to withhold benefits if employees in Wisconsin voted to join a union. An administrative law judge ruled that the company violated federal law by:

• Telling employees at a West Allis, Wis., store that they would lose planned benefit increases if they voted to unionize.
• Threatening that unionization could bring negative changes to the West Allis store.
• Soliciting employees' grievances and promising to remedy them if employees refrained from union activity.
• Telling employees that they were aggressive after they challenged a supervisor's claim about the effects of unionization on planned benefit increases.
• Telling employees that their union activity caused a negative environment at the West Allis store.

(SHRM Online)

Reinstating Fired Workers in Memphis

In September 2022, Starbucks agreed to rehire seven Memphis, Tenn., employees it fired after they participated in efforts to unionize. The company said the employees violated company policy by reopening the store after closing time and inviting nonemployees, including a television crew, to come inside.

The NLRB challenged the company's action, saying it was interfering with workers' right to organize, and asked a federal court in Memphis to intervene. A federal district judge ordered Starbucks to reinstate the workers.

(SHRM Online)

Different Benefits for Nonunion Employees

Starbucks recently announced a set of pay and benefit enhancements for 2024, some of which will not be available to unionized workers.

A 3 percent annual increase took effect on Jan. 1 for all eligible workers at U.S. stores. Employees who have worked at Starbucks for two to five years will get a pay bump of at least 4 percent. Those who have at least five years under their belts will get a lift of at least 5 percent, Starbucks said.

Union members will get whatever increases were locked in previously, which vary based on when the store petitioned to unionize. That means that many workers will get the 3 percent or 4 percent hike, and some the 5 percent, even if they are unionized. But the company will not offer new vacation accrual benefits to unionized workers unless the benefits are negotiated in collective bargaining. Nonunion employees will be eligible to accrue more vacation time sooner than before.

(SHRM Online)