Key Takeaways
- The Strategic Organizing Center (SOC), a coalition representing unionized Starbucks Corp. workers, said Tuesday it will withdraw its board nominations, citing progress in talks.
- The withdrawal ends a months-long boardroom fight between the union coalition and Starbucks.
- The SOC decision comes after Workers United, the union representing Starbucks workers, reported significant progress with the company.
- Starbucks responded to the SOC announcement by saying the company is committed to “driving long-term value for all stakeholders.”
The coalition of unions representing unionized Starbucks Corp. (SBUX) workers ended its boardroom fight with the company Tuesday, saying it was withdrawing its board nominations amid progress in negotiations.
The Strategic Organizing Center (SOC) is a coalition of unions, representing more than 2.3 million combined workers, and is a Starbucks shareholder.
The SOC launched a campaign in Nov. 2023 to add three board members chosen by the union, saying that it believed that “the Company’s response to its employees’ attempts to unionize was misguided” and “materially damaged the value of the Company’s brand and negatively impacted its shareholders, partners and customers.”
The coalition withdrew its board nominations “to acknowledge the progress that has been made and to allow the Company and its workers to focus on moving forward.”
The news comes shortly after the Workers United union reported that “a constructive path forward emerged on the broader issues of the future of organizing and collective bargaining at Starbucks.”
The union said that it and Starbucks “agreed to begin discussions on a foundational framework to achieve collective bargaining agreements for represented stores and partners, the resolution of litigation between the union and the company.”
Workers United reported that “as a sign of good faith, Starbucks has agreed to provide workers represented by Workers United with credit card tipping and benefits announced by the company in May of 2022.”
Starbucks said its “Board’s focus remains on driving long-term value for all stakeholders, including partners, shareholders, customers, and farmers.” The company added that it “has always been committed to doing the right thing—importantly, for our partners who are the heart of our business.”
The SOC withdrew its board nominations ahead of Starbucks’ annual shareholder meeting on March 13, where investors would have voted on the proposal.
Starbucks shares were down about 1% at $91.52 at 12:52 p.m. ET on Tuesday. The stock has fallen about 13% in the past year.