Starbucks Winning Battle Against Labor

"Even if one posits that Starbucks Workers United is largely correct about its claims about how Starbucks Corp. ( NASDAQ: SBUX) treats workers, it has barely made a dent in the company's operations. That puts the union in a weak position as it tries to increase membership. The back-and-forth efforts of some Starbucks employees to negotiate better terms have slowed to a halt as only 665 Starbucks stores have unionized, according to a recent analysis. The company has over 10,000 stores in the United States. Efforts to unionize Starbucks store workers began as early as 2021. That now seems like a long time ago, given the modest progress since then."

"After several small strikes, the most recent included 2,500 workers in 120 stores in 85 cities. This did not affect Starbucks operations, and the desired effect on customers never materialized. Starbucks Workers United lost whatever leverage it might have had. The strike was supposed to be its signature move to show worker progress. In short, investor concerns about workers affecting revenue or the bottom line are minor compared to Starbucks' terrible financial performance."

Starbucks Workers United has unionized 665 stores out of more than 10,000 U.S. locations, producing minimal impact on company operations. Unionization efforts began in 2021 and have progressed slowly despite several small strikes, the largest involving 2,500 workers across 120 stores. Those strikes did not disrupt operations or customer outcomes, reducing the union's bargaining leverage. Investor concerns about labor actions are overshadowed by weak corporate financial performance, including a stock decline and troubling same-store sales. The union has filed hundreds of unfair labor practice charges with the NLRB and won some, but a recent Supreme Court decision represented a setback. High-profile disputes have drawn public attention.

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