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    Starbucks Violated Labor Law in Buffalo Union Drive, Judge Rules

    The decision cited “egregious and widespread misconduct,” including illegal monitoring and firing of workers. Starbucks signaled that it would appeal.In a sweeping decision, an administrative judge in New York ruled on Wednesday that Starbucks had violated federal labor law dozens of times in responding to a union campaign in the Buffalo area shortly after the campaign began roughly 18 months ago.Michael A. Rosas, a judge for the National Labor Relations Board, concluded that Starbucks had illegally monitored, disciplined and fired employees engaged in union organizing; added workers to stores to dilute support for the union; and promised new benefits to workers in an attempt to defuse support for the union.The ruling mandates the reinstatement of seven Buffalo-area workers who the judge concluded were unlawfully discharged from the company, and back pay and damages to more than two dozen workers who the judge concluded had suffered retaliation that affected their compensation, such as a reduction of hours.In addition, the judge ordered the chief executive of Starbucks, Howard Schultz, to read or be present for the reading of a notice, more than 10 pages long, promising to refrain from committing a series of labor law violations in the future, and to make and distribute a video of the reading.Because of the company’s “egregious and widespread misconduct demonstrating a general disregard for the employees’ fundamental rights,” Judge Rosas wrote, it was necessary to issue a broad order requiring Starbucks “to cease and desist from infringing in any other manner on rights guaranteed employees.”“This is truly a historic ruling,” Gary Bonadonna Jr., the regional head of Workers United, the union organizing Starbucks, said in a statement. “We will continue to fight and hold billionaires like Howard Schultz accountable for their actions. We will not rest until every Starbucks worker wins the right to organize.”The ruling can be appealed to the labor board in Washington, and to federal court after that, and Starbucks indicated that it might do so. “We believe the decision and the remedies ordered are inappropriate given the record in this matter and are considering all options to obtain further legal review,” the company said in a statement.The organizing campaign notched its first victory in Buffalo in 2021. Since then, more than 280 of the roughly 9,300 corporate-owned Starbucks locations in the United States have unionized. The ruling covers the period from August 2021 to July 2022, by which point the campaign had spread from the Buffalo area to dozens of stores nationwide.In the early months of the campaign, Starbucks workers complained that executives and other company officials were converging on Buffalo in an attempt to undermine their unionization effort.Judge Rosas found that Starbucks had violated labor law by “having high-ranking company officials make repeated and unprecedented visits to stores in order to more closely supervise, monitor or create the impression that employees’ union activities are under surveillance.”He also ordered the company to bargain with the union at a Buffalo-area location where the union lost an election in December 2021, concluding that the scope of the violations at the store tainted the vote and made a rerun of the election an “insufficient” remedy.It is rare but not unprecedented for a judge to effectively order in a union upon concluding that it had support among workers but that a fair vote is nearly impossible. More

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    Judge Scales Back Ruling Against Starbucks in Union Fight

    After barring Starbucks from firing any U.S.-based worker over labor activity, a federal judge said he had erred and limited the action to one store.It was the most sweeping intervention by a court in the 18-month campaign to unionize Starbucks: Last week, a federal judge in Michigan issued an order blocking Starbucks from firing any U.S. worker because they engaged in collective action, like seeking to form a union.Union supporters cheered. Starbucks seemed taken aback, calling the order “extraordinary” and “unwarranted” and denying that the company had broken the law.But a few days later, the judge, Mark A. Goldsmith, announced that he had made certain unspecified “errors” and withdrew his earlier injunction. On Thursday, Judge Goldsmith issued a new injunction — only this time it was limited to a store in Michigan where a worker said she had been fired for her involvement in union organizing. The injunction’s national scope had vanished.In a revised opinion accompanying Thursday’s order, Judge Goldsmith said that the key criterion for determining whether to impose a nationwide injunction was whether the company had pursued a general policy of violating labor law. He said that while the National Labor Relations Board had filed about 24 complaints involving roughly 50 workers fired by Starbucks across the country, many of those cases were in their early stages.As a result, Judge Goldsmith concluded, the evidence supported an injunction only at a store in Ann Arbor, Mich., where a labor board judge found in October that a worker had illegally been fired.Legal experts said that the original injunction would have allowed the labor board to seek expedited reinstatement of workers who had been fired at any of the roughly 9,000 corporate-owned Starbucks stores in the country, and that it could have led to fines if the court found that Starbucks was continuing to fire workers for union organizing. Now those measures will apply only to a single store.The general counsel of the labor board, who oversees the office that had gone to federal court seeking the worker’s reinstatement, called the reversal disappointing but said in a statement that “the judge’s revised order still provides critical protection for the workers at Starbucks’ Ann Arbor store.” The statement said the agency would continue to seek nationwide remedies for labor law violations “as appropriate.”The union, Workers United, said it would “continue to fight for a national remedy to address Starbucks’ unprecedented union-busting campaign and hold the company accountable for their actions.”A Starbucks spokesman said, “We are pleased that the court rejected the National Labor Relations Board’s overreaching and inappropriate request for a nationwide cease-and-desist order as we pursue a full legal review of the merits of the case.”As to why the court initially issued the national injunction before abandoning it, Judge Goldsmith’s opinion did not elaborate.Legal experts said they couldn’t recall seeing a judge make a similar about-face. “I don’t think I can think of anything like this,” Wilma Liebman, a former chairwoman of the National Labor Relations Board, said in an email.Ms. Liebman said the most plausible explanation she could imagine was that the board had provided the judge with the order it was seeking, and that the judge had incorporated the order without sufficient modification — “careless but not intentionally mistaken,” Ms. Liebman said.A clerk reached at the court said the judge could not comment. More

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    How Is Your Company Responding to Labor Organizing? We Want to Hear.

    Employers are taking a variety of approaches to union campaigns.An Amazon Labor Union rally on Staten Island in April.DeSean McClinton-Holland for The New York TimesMaterials being prepared for workers seeking to unionize Starbucks stores.Tony Luong for The New York TimesThere has been a surge in labor organizing among baristas at Starbucks, warehouse workers at Amazon and retail workers at Apple and Trader Joe’s. They have made their voices heard, though only a fraction of each group has joined a union, and some have rejected unionization.We’d like to hear the voices of those farther from the front lines — managers and white-collar workers at those companies, particularly those at corporate headquarters. If you fit this profile, please consider responding to the questions below. Your answers may help us better understand the state of labor relations and inform our reporting.We won’t publish your name or any part of your submission without contacting you first. If you prefer to share tips or thoughts confidentially, you can do so here.Tell us how your employer is dealing with union efforts. More

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    Starbucks Showdown in Boston Points to New Phase of Union Campaign

    The company moved to contain the labor push after it took off nationally. Now, with strikes and other tactics, organizers seek to regain momentum.For much of the summer, employees reliably turned up at a Starbucks near Boston University. But instead of going inside to serve coffee, they sat outside in lawn chairs — as part of a strike over what they said was retaliation for unionizing.When passers-by inquired how long the strike would last, workers responded, “As long as it has to.” Ultimately, they shut the store for more than two months, until satisfied that Starbucks would not impose new scheduling requirements in union stores that they said would force some of them to quit. Starbucks said it had told union stores for weeks that there would be no such change and denied retaliating against union supporters.The walkout was one of dozens at unionized Starbucks locations in recent months, meant partly to re-energize a labor organizing effort whose momentum has stalled since the spring and has so far yielded no contract.When workers at three Buffalo-area locations filed for union elections in August 2021, it appeared to catch the company off guard. The campaign spread rapidly, unionizing roughly 250 stores.But election filings dropped from about 70 in March to under 10 in August, ushering in a second phase of the campaign: an uneasy stalemate in which organizers struggled to sign up new stores even as the company was hard-pressed to reverse their gains.“In the context of the size of the organization as a whole, it’s a drop in the bucket,” said David Pryzbylski, a partner at the management-side firm Barnes & Thornburg, alluding to the company’s 9,000 corporate-owned locations. But he added: “Anyone who thinks it’s going back anywhere close to zero is foolish. It’s safe to assume they’ll have at least hundreds of cafes unionized going forward.”That has led to a third phase of the campaign, in which the union, Workers United, has stepped up efforts to win concessions from the company through collective bargaining, which is scheduled for the coming weeks.Some of the concessions sought by the union, like a commitment by the company to stay neutral in future elections, could make it easier for workers to unionize. Others, like paid leave tied to a pandemic, which the company has discontinued, could encourage more workers to join the union by showing it can deliver concrete benefits.But to win such concessions and greatly expand the union’s reach, labor experts say, supporters will almost certainly have to increase pressure on the company, through strikes or other means. And that has heightened the importance of a number of cities — in addition to Boston and Buffalo, places like Eugene, Ore.; Albany, N.Y.; and Ann Arbor, Mich. — where there are several unionized stores, dozens of workers willing to coordinate their actions and a community that is largely sympathetic.“Massing forces in a particular geographic region and attempting to spread the conflagration there has the potential to work,” said Peter Olney, a former organizing director of the International Longshore and Warehouse Union. “I would focus on those metro areas.”One architect of the union’s strategy in Boston is a recent law school graduate named Kylah Clay, who works as a barista at a unionized store.On a blistering afternoon in August, Ms. Clay, wearing a tank top and green army pants, sat outside the Boston University store holding a stack of checks that workers came to collect, courtesy of the union’s Starbucks strike fund.In between, she recalled how she and a colleague had recently ambushed their district manager at another store after he had become slow to respond to their calls and text messages. “We went up to the district manager and started making our demands,” Ms. Clay said. As Ms. Clay tells it, she knew almost nothing about unions before last year, when company officials began pouring into Buffalo after the campaign had gone public. Among them was Howard Schultz, who was between tours as chief executive. “When Buffalo filed, Howard should have kept his mouth shut,” she said. “I would have never gotten involved.”Employees at her store, where she had first worked during law school, and another Boston-area store filed for union elections in December and won their votes in April. Since then, more than 15 stores in New England have also unionized, most of them with her help. Nationwide, the union has won about 250 out of just over 300 votes.But adding to the total has become more difficult. “Stores that are easy to organize, that had people in them who were natural leaders, who were excited about it — those have filed already,” said Brick Zurek, a former Starbucks employee in Chicago who helped organize workers there.Adjustments in the way that Starbucks treats workers have also appeared to play a role. During the early phase of the union campaign, the company generally did not fire workers involved in organizing. But this year, Starbucks began to do so more regularly — like when it fired seven workers in Memphis who were recently reinstated by a federal judge.The National Labor Relations Board issued multiple complaints against Starbucks for firing union supporters, and the agency’s judges have ruled against the company in a few cases so far.Reggie Borges, a Starbucks spokesman, denied that the company had unlawfully forced out workers, saying any increase in disciplinary action against union supporters reflected an increase in violations.In May, the company announced wage increases and new benefits, like faster sick leave accrual, that would apply only to employees of nonunion stores or those not in the process of organizing.Kylah Clay, a recent law school graduate, works at a unionized Starbucks in Boston, and she leads a committee that has helped other stores in New England organize.Tony Luong for The New York TimesJulie Langevin, a worker involved in organizing a Starbucks store near Boston that voted against the union, said several longtime employees in her store relied on Starbucks for health care and had become alarmed that unionized workers might miss out on benefits.“They were extremely concerned that they would actually lose health insurance,” Ms. Langevin said.The labor board has issued a complaint against the company for withholding new benefits and wage increases from unionized employees. Starbucks has said it is forbidden by federal law from adding certain benefits unilaterally in unionized stores.Workers United is an established union with more than 70,000 members across the United States and Canada, but has often relied on Starbucks workers to organize their own stores and plan their own labor actions.Ms. Clay leads a committee that helps New England stores organize, sending out union “starter kits” that include Starbucks Workers United T-shirts and union cards with envelopes addressed to the labor relations board. “I have one closet with 300 shirts in it,” she said in August.She also leads the region’s collective action committee, which came about after workers at a Boston-area store staged a daylong strike over a leaky roof in late May. (Starbucks said the leak had been repaired within a business day.)Six weeks later, as the committee was contemplating a series of daylong walkouts in response to the company’s withholding of new benefits from union stores, workers at the store near Boston University decided to strike. Spencer Costigan and Nora Rossi, two union leaders at the store, which is at 874 Commonwealth Avenue, said workers were fed up with what they described as retaliation for unionizing and the company’s refusal to bargain.“They texted me out of the blue and said, ‘I think we’re ready to do it,’” Ms. Clay said. “Not as many stores were interested at the time. But then they saw 874 and were like, ‘Ah, OK.’” Workers eventually waged strikes that closed five stores for one week; the strike at 874 Commonwealth sprawled across nine weeks.The actions seemed to build support for their cause. The Boston City Council passed a resolution backing the strikers, and politicians, activists, students and other union members joined the picket line at all hours of the day and night.Ms. Clay also leads the region’s collective action committee.Tony Luong for The New York TimesWorkers at the Boston University store called off the strike in late September, a few days after Starbucks posted an announcement to baristas saying stores that had unionized by early July would not be subject to a requirement that workers be available to work at least 18 hours a week. (The requirement would take effect at nonunion stores.)Ms. Rossi said that, before the workers went on strike in mid-July, their manager had pressured some union supporters to increase their availability under the new rule or leave their jobs. Other unionized workers in Massachusetts made similar complaints on a messaging app as recently as early September.Mr. Borges, the Starbucks spokesman, said the rule had never applied to union stores, citing communications to managers in July and a tweet by the Starbucks union the same month. He emphasized that the company had not negotiated with the striking workers or offered them concessions.A few days after the strike ended, Starbucks began sending letters to worker representatives at unionized stores proposing a window for bargaining in October. The union’s president, Lynne Fox, had sought to bargain on a regional or national scale as the union prepared proposals with input from thousands of workers, but the union has accepted the store-by-store approach preferred by the company. Starbucks has nonetheless continued to portray the union as resistant to store-level bargaining.The outcome of the negotiations could reverberate beyond Starbucks. In an email that Geico sent to employees in August, after some workers there began union organizing, the company emphasized that Starbucks had recently offered wage and benefit increases only to nonunion stores. Other large employers are surely watching closely as well.Ms. Clay, for one, believes the stakes are high enough that she has altered her career plans, declining a job in the local public defender’s office so she can stay at Starbucks and push for a contract.“There was some grieving to it — I spent the last five years trying to do that job,” she said. “But you have to go where the wind takes you.” More

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    Starbucks Illegally Denied Raises to Union Members, Labor Board Says

    Federal labor regulators have accused Starbucks of illegally discriminating against unionized employees by denying them wage and benefit increases that the company put in place for nonunion employees.In a complaint on Wednesday, a regional office of the National Labor Relations Board accused the company of breaking the law when its chief executive, Howard Schultz, “promised increased wages and benefits at U.S. stores if its employees rejected the union as their bargaining representative,” and when it withheld raises and benefits from unionized workers.The labor board is seeking, among other things, that affected employees be made whole for the denial of benefits and wage increases. It is also asking that Mr. Schultz read a notice to all employees informing them that some had been unlawfully denied benefits and pay increases and explaining their rights under federal labor law. Alternatively, a board official could read this material to employees in Mr. Schultz’s presence.The labor board’s case is scheduled for a hearing on Oct. 25 before an administrative law judge, unless Starbucks settles with the agency beforehand. Starbucks could appeal any ruling by an administrative judge to the full board.In a statement, Starbucks said that it was required under federal law to negotiate changes in wages and benefits with the union and that it was therefore not allowed to make such changes unilaterally, as it can in nonunion stores. “Wage and benefits are ‘mandatory’ subjects of the collective bargaining process,” the statement said.Workers United, the union representing the company’s newly organized workers, said the complaint affirmed its contention that Starbucks was discouraging union activity.“He claims to run a ‘different kind of company,’ yet in reality, Howard Schultz is simply a billionaire bully who is doing everything he can to crush workers’ rights,” Maggie Carter, a worker who helped unionize her store in Knoxville, Tenn., said in a statement.More than 225 out of roughly 9,000 corporate-owned Starbucks locations in the United States have voted to unionize since last fall.Mr. Schultz began indicating that the company would roll out new benefits, but only for nonunion workers, shortly after he began his third tour as the company’s chief executive in April.The next month, the company announced a series of new benefits — including additional career development opportunities, better tipping options and more sick time — but only for stores that hadn’t unionized or weren’t in the process of unionizing. The benefits were to begin in the coming months.The company unveiled wage increases as well, some of which had already been announced and which the company said would apply to all workers. But other increases were new and would apply only to nonunion workers.For example, according to Reggie Borges, a Starbucks spokesman, all employees stood to benefit from a companywide $15-an-hour minimum wage, but nonunion workers hired by May 2 would get a 3 percent raise if that proved higher than $15.The wage policy appears to have sown confusion, with some employees briefly receiving a pay increase that was then withdrawn. Colin Cochran, a worker at a store near Buffalo that initially voted to unionize and then voted against the union in a rerun election decided this month, provided pay stubs showing that his $16.28 hourly wage had increased to $16.77 the first week of August, when Starbucks began the pay increases nationwide. But Mr. Cochran’s pay stub for the second week of August showed his hourly pay dropping back to $16.28. (The union is challenging the election loss at this store.)Mr. Borges said that the reversion to the previous wage had resulted from an inadvertent error and that unionized stores would get wage increases in September.Workers involved in union campaigns at other Starbucks locations said the denial of pay and benefit increases to unionized stores had slowed their organizing efforts.Kylah Clay, a Starbucks worker in Boston who helped organize several stores in the area, said inquiries from employees at other stores who were interested in unionizing had dropped off substantially not long after the company’s pay and benefits announcement in May. But they picked up recently after the pay and many benefit changes took effect, she said. More

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    Labor Agency Seeks Broad Order Against Starbucks in Federal Court

    Federal labor regulators have asked a court to force Starbucks to stop what they say is extensive illegal activity in response to a nationwide campaign in which workers at more than 150 corporate-owned stores have voted to unionize.In a petition filed Tuesday with U.S. District Court in Buffalo, officials with the National Labor Relations Board accused the company of firing and disciplining union supporters; intimidating and threatening workers to discourage them from voting for the union; and effectively offering benefits to workers if they opposed the union.The agency is also seeking the reinstatement of seven Buffalo-area employees whom, it said, Starbucks had illegally forced out in retaliation for their union-organizing activities, and an order effectively recognizing the union in a Buffalo-area store where the union lost a vote despite strong initial support.The agency said in its filings that the court’s intervention was necessary to stop Starbucks’s “virulent, widespread and well-orchestrated response to employees’ protected organizing efforts” and that without the proposed remedies, Starbucks would “accomplish its unlawful objective of chilling union support, both in Buffalo and nationwide.”Reggie Borges, a Starbucks spokesman, rejected the accusations. “As we have said previously, we believe these claims are false and will be prepared to defend our case,” Mr. Borges wrote in an email.Matt Bodie, a former lawyer for the labor board who teaches labor law at St. Louis University, said it was not unusual for the agency to seek reinstatement of ousted workers. But he said the nationwide breadth of the injunction the agency was seeking was far less common, as was the request for the court to order recognition of a union at a store where the union initially lost its election.“It’s a big step in line with the Biden board’s commitment to a more rigorous and aggressive approach to labor law enforcement,” Mr. Bodie wrote in an email.The labor board has already issued more than 30 formal complaints finding merit in allegations similar to the ones it cataloged in its petition on Tuesday. It typically takes months or years to adjudicate such complaints, and the board asserted that allowing the process to run its course while the company continued to break the law would “cement this chill and nullify the impact of a final remedy.”The agency said that unlawful anti-union activity had begun shortly after workers in Buffalo went public with their union campaign in late August, and that it had escalated after two Buffalo-area stores won union votes in December. It said Starbucks had forced out several union supporters for violating rules that the company had not previously enforced.The company “quickly jettisoned its past practices to target union supporters more effectively,” the labor board wrote.A federal judge recently denied the labor board’s request to reinstate pro-union workers it said Starbucks had unlawfully forced out in a similar, if narrower, case in Arizona.The judge found that in the case of two workers, there was not evidence of retaliation for union activities, or the evidence was “inconsistent” with the accusations.In the case of a third worker, the judge found that both sides had arguments supporting their positions and that an administrative proceeding might ultimately show that Starbucks sought to retaliate over the worker’s union activities. But the judge concluded that Starbucks would have fired the worker even absent her union involvement. More

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    Starbucks Executive, Prominent in Push Against Union Drive, Will Leave

    Starbucks said Friday that an executive who played a key role in the company’s response to a growing union campaign would leave by the end of the month.In a letter to employees, whom Starbucks calls “partners,” the company’s chief operating officer said that Rossann Williams, the president of retail for North America, would be leaving after 17 years at the company. The letter said the decision was “preceded by discussion about a next opportunity for Rossann within the company, which she declined.”John Culver, the chief operating officer, added in the letter that Ms. Williams “has not only been a fierce advocate for our partners, but she has been a champion of our mission, our culture and operational excellence.”Since December, when a store in Buffalo became the only one of Starbucks roughly 9,000 corporate-owned stores with a union, the campaign has spread rapidly across the country.The union has won over 80 percent of the more than 175 elections in which the National Labor Relations Board has declared a winner, and workers have formally sought elections at more than 275 stores in all.After workers at three Buffalo-area stores filed for union elections in August, Ms. Williams went to the city and spent much of the fall there leading the company’s response to the campaign. She spent many hours in stores, asking employees about concerns they had at their workplaces and even pitching in on tasks like throwing out garbage.But some workers said the presence of such a high-ranking official in their stores was intimidating and even “surreal.”Labor experts also raised concerns that Ms. Williams and other Starbucks officials deployed to the stores could be violating labor laws by intimidating workers and effectively offering to improve working conditions if employees voted against unionizing.The National Labor Relations Board later issued a complaint against the company along these lines, after investigating and finding merit to the accusations.The company denied that it had violated the law and has long said that it is seeking to address operational issues like understaffing and inadequate training, efforts it said had preceded the organizing campaign.In response to a question about whether she or the company might be undermining the conditions for a fair union election, Ms. Williams said in an interview in October that she had no choice but to intervene.“If I went to a market and saw the condition some of these stores are in, and I didn’t do anything about it, it would be so against my job,” she said at the time. “There’s no way I could come here and say I’m not going to do anything.”Mr. Culver’s letter said that Ms. Williams would be replaced by Sara Trilling, who most recently oversaw the company’s operations in the Asia-Pacific region. More