Starbucks union group ends campaign for three board seats

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A US union has ended its campaign for a Starbucks board seat, citing progress in contract talks ahead of the coffee company's annual shareholder meeting next week.

The Center for Strategic Organizing, a coalition of labor groups that has nominated three Starbucks board members, said Tuesday that the company and a union of workers have agreed to work together to reach a collective bargaining agreement on behalf of stores and workers.

A handful of Starbucks baristas voted for union representation for the first time in late 2021. Since then, nearly 400 of Starbucks' 9,000 U.S. stores have joined the union movement, a campaign widely credited with helping to revitalize the fortunes of the American labor movement.

Until recently, talks to agree on an employment contract had been deadlocked due to tensions between unions and the company. Baristas filed more than 700 unfair labor practice charges with the National Labor Relations Board, which found the coffee maker violated the law in 48 cases.

Starbucks is also suing the union, alleging copyright and trademark infringement after the union used a logo that looked like Starbucks in pro-Palestinian social media posts, triggering a boycott of the brand. The workers' union countersued.

But last week, the company and the workers' union said they had agreed on a “framework” to reach a contract and resolve the lawsuit.

“We believe that, overall, shareholders are optimistic that the company is sincerely committed to these changes and intends to begin repairing relationships with its employees,” SOC said.

“We believe now is the time to acknowledge the progress that has been made and allow the company and its employees to focus on moving forward,” it added. “As a result, we are withdrawing our director nominations.”

SOCs were able to nominate new directors after the SEC changed its rules to make proxy campaigns easier.

Starbucks said Tuesday it appreciated the SOC's decision. The company said in late February that it would begin discussions on a collective bargaining agreement “including a fair organizational process, as well as the resolution of some pending litigation.”

Last week, influential proxy advisory firm Institutional Shareholder Services sided with Starbucks and recommended investors vote against SOC board nominees.

Starbucks shares have fallen 12% in the past 12 months.