Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Union-backing shareholder asks Starbucks to disclose 'anti-union spending,' approaches SEC

Published 02/16/2024, 09:24 AM
Updated 02/16/2024, 04:40 PM
© Reuters. FILE PHOTO: A woman displays a red Starbucks cup at a Starbucks cafe in Beirut, Lebanon November 20, 2016. Picture taken November 20, 2016. REUTERS/Jamal Saidi

(Reuters) -A labor union-backing shareholder wrote a letter to the U.S. Securities and Exchange Commission on Friday, saying that Starbucks (NASDAQ:SBUX) has failed to disclose costs arising from anti-union campaigns, which was estimated at about $240 million.

The Strategic Organizing Center (SOC), a coalition of North American labor unions, said the company "needs to immediately provide full disclosure of the total costs and liabilities ... for... informed voting decisions before the 2024 annual meeting."

Unionization efforts at the world's largest coffeehouse chain have intensified since late 2021.

More recently, workers walked out during a promotional event in November in a strike organized by the Workers United union demanding, improved staffing and schedules.

"Counter to claims made by the Strategic Organizing Center, Starbucks does not spend money on 'anti-union activities' and continues to comply with all current SEC and OLMS (Office of Labor-Management Standards) reporting requirements," a Starbucks spokesperson told Reuters in an emailed statement.

Starbucks' annual meeting, where shareholders will vote on the composition of its eight-member board, is scheduled for March 13.

The SOC, which nominated three candidates to the board of Starbucks in November, said the costs include litigation, the employee lost time, and liabilities associated with alleged labor law violations.

© Reuters. FILE PHOTO: A woman displays a red Starbucks cup at a Starbucks cafe in Beirut, Lebanon November 20, 2016. Picture taken November 20, 2016. REUTERS/Jamal Saidi

The U.S. Supreme Court last month agreed to hear Starbucks' appeal against a lower court ruling that it needed to rehire seven employees at one of its cafes in Memphis, Tennessee who a federal agency determined were fired for supporting unionization.

The SEC did not immediately respond to Reuters' requests for comment.

Latest comments

if Starbucks corporation's incompetent over paid, executive leadeship can't provide living wags they should be replaced.
overpriced like everything
Jobs at places like Starbucks were never supposed to be careers. These union drives at low skilled jobs are hurting our economy and contributing to persistent inflation.
Roger likes an under paid poverty stricken workforce. it makes him feel superior.
Good, they promote the pink haired pedophile communist agenda, they deserve this.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.