Federal labor regulators have accused Starbucks of unlawfully discriminating against union members by refusing to raise wages and benefits for non-union workers.
In Wednesday’s complaint, the local office of the National Labor Relations Board said the company’s chief executive, Howard Schultz, said “wages and benefits at U.S. stores will be reduced if employees reject the union as their bargaining agent.” He accused the company of violating the law when it promised to raise welfare,’ and when it withheld pay raises and profits from union members.
The Labor Relations Commission is calling, among other things, for affected employees to go full for denial of benefits and wage increases. I am asking you to read a notice explaining your wrongful denial and your rights under federal labor law. Alternatively, executives can read this material to employees in Mr. Schultz’s presence.
The Labor Board case is scheduled for a hearing by an administrative law judge on October 25, unless Starbucks settles with its agents in advance. Starbucks may appeal decisions made by administrative judges to the entire Board of Directors.
The statement said Starbucks is required under federal law to negotiate wage and benefits changes with unions, and therefore cannot unilaterally make such changes like a non-union store. “Wages and benefits are ‘mandatory’ subjects of the collective bargaining process,” the statement said.
Workers United, the union representing the company’s newly formed workers, said it supported claims that Starbucks was discouraging union activism.
“While he claims to run a ‘different kind of company,’ Howard Schultz is actually a billionaire bully doing everything to crush workers’ rights. Child, Tennessee, said in a statement.
Since last fall, more than 225 of the approximately 9,000 company-owned Starbucks stores in the United States have voted for unions.
Schultz began suggesting that the company would roll out new employee benefits shortly after he took over as CEO for the third time in April.
The following month, the company announced a series of new benefits. This includes additional career development opportunities, better tipping options, and more sick leave. store only Not organized or in the process of organizing. The benefit was that it would start in the next few months.
The company has also announced wage increases, some of which have already been announced, and the company said it will apply to all workers. Applies.
For example, all employees would benefit from a company-wide minimum wage of $15 an hour, according to Starbucks spokesman Reggie Borges, but non-union workers hired by May 2 Workers get a 3% pay raise if they prove it’s over $15.
Wage policies appear to have caused confusion, with some employees temporarily receiving raises, which have since been withdrawn. Colin Cochrane, who works at a store near Buffalo, first voted for unionization and then against it. Re-election will be decided this month, provided payslips showing his $16.28 hourly wage increased to $16.77 in the first week of August when Starbucks began raising wages nationwide. ‘s payslip showed that his hourly rate had returned to $16.28. (The union is challenging the election defeat at this store.)
Mr Borges said the return to previous wages was the result of an inadvertent mistake and union affiliates will receive wage increases in September.
Workers participating in union campaigns at other Starbucks stores said the refusal to raise wages and benefits for unionized stores slowed efforts to organize.
Shortly after the company announced its pay and benefits in May, employees at other stores said Inquiries interested in forming a union have decreased significantly. But they have recently recovered, she said, after salary and many benefits changes were implemented.