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Unions end Starbucks management battle

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A coalition of labor unions said Tuesday it had ended its boardroom feud with Starbucks after the coffeehouse chain agreed to negotiate labor contracts, a sign of progress after years of tumultuous relations between the company and its organized workers.

The union alliance Strategic Organizing Center withdrew its list of three board candidates about a week before the March 11 shareholder vote on the 11-member board. The announcement comes more than two years into a campaign that unites nearly 400 Starbucks stores.

On Tuesday, the alliance said it is “time to recognize the progress made and allow the company and its employees to focus on moving forward.”

“We believe it is imperative that shareholders continue to monitor the performance of Starbucks’ board and its approach to labor relations in the coming months – and we intend to continue to hold the company accountable moving forward,” the alliance said.

The decision to appoint board members was the latest attempt by the unions to push the company to work with them.

Starbucks employees began organizing in 2021 with three stores in the Buffalo area. Since that campaign began, the National Labor Relations Board has filed numerous complaints against Starbucks, accusing the company of taking steps to oppose the organizing effort, which the company has denied. According to the union alliance, Starbucks has spent more than $240 million to destroy union efforts. The two sides have also sued each other over the union’s right to use a logo similar to the Starbucks logo.

Starbucks and the union that represents its workers, Workers United, whose parent company is part of the union alliance, said late last month they were beginning discussions on a “foundational framework” to help reach labor agreements and prevent lawsuits over the union’s use of to solve. Starbucks logo.

The union alliance said in a statement on Tuesday that it has since had a “meaningful dialogue” with shareholders, who it said are optimistic about rebuilding relations with employees. Starbucks shareholders passed a resolution last year directing the company to conduct a review of its labor practices.

“Our board’s focus remains on driving long-term value for all stakeholders, including partners, shareholders, customers and farmers,” Starbucks said in a statement Tuesday.

The news was first reported by Reuters.

Two influential consultancy firms, Institutional Shareholder Services and Glass Lewis, last week advised shareholders to vote on board nominees, partly because the parties had announced they would resume talks.

The alliance’s nominees were not expected to win spots on the board. Analysts at Gordon Haskett wrote in a note last week that the vote was essentially “a referendum on the company’s labor policies and, more specifically, the resources SBUX has spent to frustrate union efforts to organize.”

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