Starbucks Faces Political Heat: US Lawmakers Reportedly Urge CEO To End 'Union Busting’ Practices

• Reuters reported that a similar letter was also sent on Monday by House representatives, with the House Labor Caucus and Representative Pramila Jayapal leading the effort. 
• Starbucks Workers Union is reportedly ready to go on strike in more than 25 cities on November 13, during Starbucks’ well-known holiday-related busy days, Red Cup Day.
• The coffee giant told Reuters that the union represented only 4% of its workforce and the company already offers “the best job in retail.”

A group of 26 U.S. senators and 82 House representatives has reportedly sent a letter to Starbucks CEO, Brian Niccol, calling on the coffee giant to restart negotiations with its workers' union.

“We have heard of a troubling return to union busting,” the letter from the group of senators led by Senator Bernie Sanders read, according to Reuters. The lawmakers noted that the company should “bargain a fair contract in good faith with these employees.”

The report added that a similar letter was also sent on Monday by House representatives, with the House Labor Caucus and Representative Pramila Jayapal leading it. Notably, no Republican lawmakers signed either letter, Reuters added.

Retail sentiment on Starbucks improved to ‘bullish’ from ‘neutral’ compared to a day ago, with message volumes at ‘low’ levels, according to data from Stocktwits.

Red Cup Day Strike

Last week, Bloomberg News reported that Starbucks Workers United was gearing up for a strike this week during one of the company’s peak business days as an attempt to secure a labor contract after years of stalled negotiations.

The union represents employees at about 550 of the chain’s roughly 10,000 company-run U.S. stores. It is reportedly ready to go on strike in more than 25 cities on November 13, during Starbucks’ well-known holiday-related busy days, Red Cup Day.

Starbucks' View

Starbucks told Reuters that the union represented only 4% of its workforce. The company added that it already offers “the best job in retail.” The report stated that Starbucks offers healthcare, parental leave, and tuition assistance for online classes at Arizona State University to employees who work a minimum of 20 hours.

The report, citing letters from U.S. lawmakers, noted that Starbucks Workers United has so far filed more than 100 charges against the company since December for alleged unfair labor practices, such as retaliation against unionizing baristas.

Starbucks “has the money to reach a fair agreement,” the letters read, and said that the coffee giant allocated several billion dollars toward dividends and stock buybacks, while Niccol received $95 million in compensation, covering the shares he departed Chipotle.

Shares of Starbucks have declined over 6% this year and have fallen nearly 15% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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