Unions End Starbucks Boardroom Fight As Bargaining Advances

A coalition of labor unions is ending its boardroom fight at Starbucks after the coffee chain last week agreed to work toward reaching labor agreements, two sources familiar with the matter told Reuters, as reported by Svea Herbst-Bayliss.

This fight was closely watched on Wall Street because it marked the first time a labor union used tools traditionally employed by hedge funds to push for board seats at a corporation. I Photo: SBWorkersUnited Facebook

The Strategic Organizing Center (SOC), a coalition of North American labor unions, is withdrawing its three director candidates from the coffee chain's 11-member board one week before Starbucks investors were slated to elect directors to oversee corporate strategy at the company's March 13 annual meeting, the sources said, requesting anonymity due to the private nature of the discussions.

Many large investors expressed optimism to the coalition, which includes the parent of Workers United representing Starbucks workers, that Starbucks is committed to changes and plans to repair its relationship with employees, the sources said.

This fight was closely watched on Wall Street because it marked the first time a labor union used tools traditionally employed by hedge funds to push for board seats at a corporation.

The coalition argued that Starbucks' resistance to unionizing, which began in 2021, tarnished the brand and hurt shareholders by weighing on the share price.

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