Starbucks Corp. (NASDAQ:SBUX) is once again embroiled in labor disputes as its union has filed 34 new complaints with the National Labor Relations Board, marking a resurgence in tensions.
What Happened: The complaints, lodged by Starbucks Workers United, accuse the company of breaching federal labor laws, Bloomberg reported on Friday
Allegations include targeting and dismissing employees for their union activities across 16 states. These actions follow a previous complaint filed on Dec. 20, accusing Starbucks of unfair negotiation practices.
Starbucks has dismissed the allegations as unfounded.
“Taking time to file such claims is a tactic that brings distraction from the progress we could be making,” said company spokesperson Phil Gee in an emailed statement to Bloomberg. The NLRB will investigate these cases, and if found credible, they could proceed to agency judges.
The recent filings and strikes reflect ongoing labor disputes reminiscent of those in 2022 and 2023. Despite earlier efforts to resolve differences, talks broke down over pay issues, with the union accusing Starbucks of inadequate economic proposals.
Why It Matters: The recent complaints come on the heels of a significant labor strike during the holiday season. Starbucks workers expanded their strike to more U.S. cities as wage negotiations stalled. The strike, which began in major cities like Los Angeles, Chicago, and Seattle, eventually spread to New Jersey, New York, Philadelphia, and St. Louis. Workers United demanded substantial wage increases, which Starbucks deemed “unsustainable.”
Further intensifying the situation, over 300 Starbucks locations were affected by a strike on Christmas Eve, involving more than 5,000 workers. Unresolved disputes over wages, staffing, and schedules were at the core of the strike. With over 60 stores in major cities shut, the ongoing labor unrest highlights the deepening rift between Starbucks and its employees.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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