Ex-Starbucks CEO Schultz's comment to union supporter was illegal, NLRB rules
Adds Starbucks statement in paragraphs 6-7
By Daniel Wiessner
Oct 3 (Reuters) -Former Starbucks CEO Howard Schultz violated federal labor law by telling a barista in California who criticized the coffee chain's response to a nationwide union campaign to "go work for another company," the National Labor Relations Board has ruled.
The board on Wednesday said the comment by Schultz during a company event in 2022 amounted to an illegal threat that could discourage unionizing, upholding a decision by an administrative judge.
Schultz was chief executive of Starbucks for three separate stints beginning in the 1980s before he stepped down last year, and is widely credited with turning the brand into a global phenomenon.
Schultz had met with a group of Starbucks employees from stores in Long Beach, California, to discuss concerns about working conditions and made the comment to one of them, Madison Hall, after she criticized the company's treatment of workers and resistance to unionizing.
"Schultz's generic assurances against retaliation at the opening of the meeting hardly lessened the objective tendency of his invitation to quit to have a coercive effect on ... the employees in attendance, particularly given his surrounding explicit references to the Union," the board said.
Starbucks in a statement provided by a spokesperson said it disagreed with the board's decision.
"Our focus continues to be on training and supporting our managers to ensure respect of our partners’ rights to organize and continuing to make progress in our discussions with Workers United," the union organizing the company's workers, Starbucks said.
Workers United did not immediately respond to a request for comment on Thursday.
The decision can be appealed to a federal appeals court.
Workers at 500 Starbucks locations in the U.S., including one in Long Beach, have voted to unionize since late 2021.
Starbucks has faced allegations of widespread illegal union-busting from workers, labor groups and Democratic lawmakers, which it has denied. Earlier this year, Starbucks and Workers United announced a nationwide "framework" to guide organizing and collective bargaining and potentially settle scores of legal disputes.
At the 2022 event at a conference center in Long Beach, Hall said the company should engage in collective bargaining and pledge not to interfere with union organizing. She also asked Schultz about allegations of illegal labor practices, according to board filings. No other workers raised concerns related to unionizing, according to board filings.
Schultz in response asked Hall why she was "angry at Starbucks." He said he had not come to discuss union issues and told her that "if you're not happy at Starbucks, you can go work for another company," according to filings in the case.
The NLRB on Wednesday rejected Starbucks' claim that the broader context in which Schultz made the comments showed they were not intended to discourage organizing. Schultz demeaned Hall by calling her angry and noting that she had only worked for Starbucks for two years, the board said.
"These factors, set against a backdrop of unfair labor practice litigation arising from [Starbucks'] response to the Union’s nationwide organizing, provide ample context for finding Schultz’s statement objectively coercive," the board said.
The decision bars Starbucks from "impliedly threatening employees with discharge if they engage in union or other protected concerted activities" and requires the company to post notices of the violation at its stores in the Long Beach area.
The case is Starbucks Corp, National Labor Relations Board, No. 21-CA-294571.
For Starbucks: Jonathan Levine of Littler Mendelson
For the union: Gabe Frumkin of Barnard Iglitzin & Lavitt
For the NLRB general counsel: Lindsay Parker
Read more:
Ex-Starbucks CEO Schultz illegally threatened union supporter, NLRB judge rules
Starbucks CEO Niccol says committed to "engage constructively" with workers union
US Supreme Court backs Starbucks over fired pro-union workers
Starbucks must rehire fired union supporters, US appeals court rules
Starbucks' ex-CEO Schultz resists 'union busting' claims by U.S. Senators
Starbucks must disclose spending on response to union campaign, judge rules
Reporting by Daniel Wiessner in Albany, New York
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
