As the Starbucks saga continues to unfurl, we see the company grappling with the repercussions of worker unionization at some of its stores in the United States.
The labor dispute, dubbed Strike with Pride, was initiated by Starbucks Workers United (SWU) on June 23, 2023, and took the form of a week-long unfair labor practice strike that involved over 3,000 workers from more than 150 stores nationwide, with the union claiming to have closed 20+ locations due to the strike.
The union called for a week-long unfair labor practice strike. They are demanding that Starbucks negotiate a contract and stop opposing the union, along with allegations that the company has implemented changes in policies and programs that have significantly impacted Starbucks’ LGBTQIA+ workforce.
Workers are protesting reports that some Starbucks stores banned LGBTQ+ Pride displays this year after backlash against companies like Target, where angry customers tipped over Pride displays and confronted workers. The union also says Starbucks officials have warned workers that unionizing could threaten their health benefits, including gender-affirming care for transgender workers. The union filed an unfair labor practices charge about the Pride decorations with the National Labor Relations Board on June 7.
Despite Starbucks’ denial, some workers and the union report that Pride decorations were ordered to be removed by a district manager. This reportedly occurred without written notice and contradicted the company’s past practice of allowing employees to celebrate their queer identities at the workplace.
Starbucks refutes these allegations, asserting that SWU is spreading false information about the company’s benefits, policies, and negotiation efforts, all in an attempt to divide Starbucks’ partners. The company contends that it has consistently supported the LGBTQ+ community and has not changed any policies on the celebration of Pride Month in June.
Starbucks responded to the union charges by filing its own unfair labor practice charge with the NLRB alleging that the union’s “unlawful campaign” has included making “recklessly false statements about Starbucks’ longstanding support of Pride month and decorations in its stores.”
This issue is far from resolved and will continue to unfold in the coming months. What does this mean for Starbucks and other businesses?
For Nick Kalm, founder and president of Reputation Partners, this is a good time for employers to look before they leap into the turbulent waters of social activism.
“…A company staking a position on almost anything is virtually certain to provoke an equally negative reaction from a significant portion of the country.
I’m not saying that companies should never take a position on a societal issue, but they shouldn’t do it rashly or without careful analysis and deliberation.”
To assist employers who need help responding to these types of issues. Kalm provided a checklist to prepare a response. It’s a complex world out there, folks. Let’s navigate it wisely.
