Starbucks ordered to rehire workers in Illinois and New York after NLRB finds illegal firings
Starbucks Corp. has been directed by the National Labor Relations Board (NLRB) to reinstate two workers from Illinois and New York after they were unlawfully terminated for their involvement in union activities. Administrative Law Judge Sarah Karpinen determined that the global coffee chain violated the National Labor Relations Act by engaging in multiple infractions while employees attempted to organize a cafe in Wilmette, Illinois, in 2022. This is the latest ruling against Starbucks by NLRB judges, who have found 48 out of 49 cases involving labor law violations. These violations include unjustifiably firing and threatening over 60 union organizers, excluding unionized stores from national wage increases, and obstructing the board’s investigative process.
Violations and firings in Illinois
Judge Sarah Karpinen concluded that Starbucks managers at the Wilmette location took actions to impede the budding union campaign by interrogating workers about their union-related activities. Additionally, supervisors terminated the employment of the two baristas who initiated the unionization effort on the grounds that they used profanity in front of customers. Both workers were dismissed following meetings in which managers questioned them about their sympathies with the union. Karpinen’s decision further revealed that the second organizer was fired after lodging a complaint about the termination of the first organizer.
Violations and threats in New York
In a separate ruling, Administrative Law Judge Michael Silverstein determined that Starbucks managers in Syracuse, New York, warned employees that their work hours, compensation, and benefits could be jeopardized if they opted to join a union. Furthermore, supervisors improperly interrogated and monitored employees during their unionization campaign in January 2023.
Rehiring and ending illicit conduct
Starbucks has been instructed to reemploy both individuals who were unlawfully terminated in these cases, providing them with back pay, and to cease any other illegal actions. This decision represents another setback for the coffee giant, as the NLRB’s judges have consistently identified labor law violations committed by the company.
Starbucks has not yet issued a response to these rulings.
Reference
The Illinois case is Starbucks Corp., N.L.R.B. A.L.J., No. 13-CA-297565, 2/9/24.
The New York case is Starbucks Corp., N.L.R.B. A.L.J., No. 03-CA-310676, 2/9/24.
Analyst comment
Positive news for workers’ rights. Market impact: Starbucks reputation takes a hit, potential for decreased customer trust. May face increased scrutiny and potential legal consequences. Possible decrease in sales and profitability in the short term.
