Starbucks to work with unions

Starbucks Corp. has shifted its strategy regarding labor unions.

The coffee giant and Workers United, the union that represents approximately 10,000 employees in nearly 400 Starbucks stores nationwide, are starting discussions on a "foundational framework" that would help the retailer reach agreements with union workers. 

The shift comes after Starbucks has faced allegations, which it denies, that it has actively worked to resist union organizing at the company. It also comes under the leadership of Laxman Narasimhan, who took the reins as CEO from Howard Schultz nearly one year ago. Schultz made no secret of his opposition to the unionizing efforts at Starbucks.

"We have agreed with Workers United that we will begin discussions on a foundational framework designed to achieve collective bargaining agreements, including a fair process for organizing, and the resolution of some outstanding litigation," wrote Sara Kelly, executive VP, chief partner officer, Starbucks, in a statement on the company's web site. 

Starbucks said the framework is designed to achieve collective bargaining agreements for represented stores and employees as well as the resolution of litigation between the union and the company.  

In what some called a major concession — and it what Starbucks called a "sign of good faith" — the company has agreed to provide employees represented by Workers United with the pay hikes and other benefits it introduced in May 2022 to its nonunion workers, including allowing customers to add a tip to their credit card payments.

"While there is important work ahead, coming together to work on this framework represents an important stop forward and a clear demonstration of a shared commitment to working collaboratively on behalf of partners," Kelly wrote.