Union Coalition Withdraws Board Nominations as Talks Progress with Starbucks
The Strategic Organizing Center (SOC), a coalition representing unionized Starbucks Corp. workers, has announced that it will withdraw its board nominations, citing significant progress in ongoing talks with the company. This decision brings an end to the months-long boardroom battle between the union coalition and Starbucks.
The SOC’s move comes after Workers United, the union representing Starbucks workers, reported significant headway made in conversations with the coffee giant. Starbucks responded to the SOC’s announcement by affirming its commitment to “driving long-term value for all stakeholders.”
The coalition had launched a campaign in November 2023, pushing for the addition of three board members chosen by the union. At the time, they expressed concerns that the company’s response to its employees’ attempts to unionize had harmed the brand’s value and affected shareholders, partners, and customers.
However, with progress being made in talks between the union and Starbucks, the SOC has decided to withdraw its board nominations in order to acknowledge the positive developments and allow the company and its workers to focus on moving forward.
Workers United reported that Starbucks had agreed, as a sign of good faith, to provide workers represented by the union with credit card tipping and benefits that had been announced by the company in May 2022.
Starbucks emphasized that its board remains committed to driving long-term value for all stakeholders, including partners, shareholders, customers, and farmers. The company further highlighted its dedication to doing what’s right, particularly for its partners who are integral to its business.
The SOC’s decision to withdraw its board nominations comes just ahead of Starbucks’ annual shareholder meeting on March 13, where investors would have voted on the proposal. As of 12:52 p.m. ET on Tuesday, Starbucks shares were down approximately 1% at $91.52, with the stock having declined around 13% over the past year.
Analyst comment
Neutral news.
As an analyst, it is expected that the market will remain relatively stable following the withdrawal of the union coalition’s board nominations. The progress made in talks between the union and Starbucks is seen as a positive development, allowing the company and its workers to focus on moving forward. However, it is still important to monitor the company’s performance and investor sentiment, as reflected in the slight decline in Starbucks’ stock price.
