Starbucks and Union agree to work out a framework for contract negotiations

Starbucks and the union that represents workers at about 400 of its U.S. stores announced Tuesday that they were beginning talks on a “foundational framework” that would help the company reach labor agreements with union workers and resolve disputes between the two sides.

The union hailed the development as a major change in strategy for Starbucks, which has taken steps since the start of the 2021 campaign to oppose unionization at the company, moves that federal labor regulators say violate hundreds of times labor legislation.

Starbucks, which has denied the allegations, said in a statement that it hoped the contracts would be negotiated and ratified by the end of the year and that it would agree to a “fair organizing process” – something the union has been calling for for years . It said that, as a gesture of good faith, it was offering union workers benefits that it introduced in 2022 but did not give to union stores, such as the ability for customers to tip via credit card.

Representatives from both Starbucks and the Workers United union said that while details were still being worked out, they hoped to be back at the bargaining table in April. Negotiations between the two sides have largely failed in recent months.

Employees who helped lead the organization said the development had surprised them. “It still feels pretty surreal right now,” said Michelle Eisen, a longtime barista at a Starbucks in Buffalo, the first company-owned store to form a union during the current campaign. “There hasn’t been a single phone call today where I didn’t cry or everyone else didn’t cry.”

If agreement is reached on a framework that quickly leads to contracts, experts say, it could be a major development in labor relations in corporate America, where companies like Amazon and Apple have resisted unionization to varying degrees.

“If Starbucks truly intends to respect employees’ right to organize, end the harassment and intimidation of pro-union workers, and truly bargain in good faith, this is a huge step forward,” says John Logan, professor at San Francisco State. University, who is an expert on how companies respond to union campaigns, said in an email.

But Dr. Logan said he wanted to wait to judge the value of the framework until details were available. “There is plenty of reason to be cautious: Over the past two and a half years, the company has been involved in one of the most aggressive and unlawful anti-union campaigns in modern history,” he said.

The shift appears to have been driven by the company’s CEO, Laxman Narasimhan, who took over almost a year ago.

Mr. Narasimhan’s predecessor, Howard Schultz, told The New York Times in 2022 that he couldn’t imagine ever embracing the union. He remains a major shareholder in Starbucks, but is no longer on the board of directors.

Former executives who have spoken to Mr. Narasimhan have said he is less resistant to the union.

Company announced in December that it wanted to restart contract negotiations, and Mr. Narasimhan sent a message conciliatory message Shortly afterwards, the company indicated that it wanted to improve its relationship with its employees, whom it calls partners.

“Our goal next year is to further revitalize our partner culture,” Mr. Narasimhan wrote, adding that “it is time to re-sew the fabric of the green apron for all partners.”

People on both sides said the breakthrough – including an agreement on general principles – came last week during mediation to resolve lawsuits between the union and the company.

Employees from more than 20 stores filed petitions one day last week to unionize their stores most ever in one daythe union said – a reflection of the campaign’s persistence.

So far, no mention has been made in the discussions of a dissident campaign for three seats on Starbucks’ board, backed by a coalition of unions that includes Workers United’s parent company. Shareholders can vote for candidates up to and including those of the company annual meeting by mid-March if a compromise isn’t reached sooner, but the announcement of the framework could reduce the case for a change in the eyes of many investors.