Starbucks workers want representation on the company’s board of directors
Unions have pushed for representation on Starbucks’ board of directors, increasing pressure in the fight between the coffee giant and its employees.
The Strategic Organizing Center, a coalition of unions that includes the Service Employees International Union (SEIU), which owns a small stake in Starbucks, said it was seeking representation on the board because the board did not monitor workers’ rights. workers.
According to the Wall Street Journal, the shareholder nomination period opened on October 25. The group of workers began the process by nominating three management candidates. The vote will take place at Starbucks’ next annual shareholder meeting.
As with most board elections at large companies, the choice here will depend on who gets the backing of big funds.
THE TENSION CONTINUES BETWEEN THE UNION AND THE COMPANY
Over the past two years, 360 of the company’s 9,380 U.S. locations voted to join the SEIU-affiliated Starbucks Workers United union. Starbucks resisted these efforts, and the union filed more than 600 complaints against the company with the National Labor Relations Board.
Workers have signed many strikes in the last period to unionize and increase their wages.
Meanwhile, Starbucks has pledged to spend $1 billion on higher wages and greater benefits for baristas. The company said it has created a board committee focused on meeting responsibilities.
“Starbucks’ board of directors and executive leadership team communicate regularly with all stakeholders and we are committed to constructive dialogue that advances our goal of creating long-term value for all stakeholders,” the company said in a statement. announced on Monday.
The Center for Strategic Organization maintains that problems with unionization expose the company to legal, financial and regulatory risks, damaging its brand value and its stock price.
INVESTORS ARE ALSO UNCOMFORTABLE
On the other hand, the possibility of workers joining the board of directors does not seem very low. Some investors have recently expressed concern about Starbucks’ handling of labor issues.
At the annual meeting in March, more than half of shareholders voted to recommend an independent audit of the company’s labor rights practices. The proposal also had the support of leading consultancies Institutional Shareholder Services and Glass Lewis.
Starbucks workers will also benefit from a regulation that went into effect last year. Directors nominated by a company must now appear on the same ballot as those nominated by individual investors.