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laxman narasimhan
New Starbucks CEO Brian Niccol Has a History of Union-Busting
Niccol's tenure as Chipotle CEO was marred by settlements over unfair labor practices and child labor law violations.
Aug 13, 2024
Labor advocates responded to Tuesday's announcement that global coffee giant Starbucks hired Brian Niccol as its new chief executive officer by highlighting his history of union-busting during his previous job as CEO of the fast-food chain Chipotle.
Starbucks' move to replace former CEO Laxman Narasimhan with Niccol comes as the company's share price has fallen amid an ongoing unionization wave by its workers and boycotts over its perceived support for Israel, which is on trial for genocide at the World Court over its war on Gaza.
"We are thrilled to welcome Brian to Starbucks. His phenomenal career speaks for itself," Starbucks board chair Mellody Hobson said in a statement announcing his hiring. "Like all of us at Starbucks, he understands that a remarkable customer experience is rooted in an exceptional partner experience."
Niccol—who will be Starbucks' fourth CEO in just two years—said he is "energized by the tremendous potential to drive growth and further enhance the Starbucks experience for our customers and partners, while staying true to our mission and values."
Starbucks refers to its workers as "partners."
However, More Perfect Union noted that, under Niccol's leadership, Chipotle closed a store in Augusta, Maine in 2022 after employees there tried to make it the company's first unionized location. The workers filed a complaint at the National Labor Relations Board (NLRB), which ruled that the closure was an illegal act of union-busting.
Last year, Chipotle agreed to pay former workers at the Augusta store $240,000 as part of a settlement over the illegal closure. The company also settled another unfair labor practices charge after the NLRB sided with workers at a Lawrence, Kansas Chipotle who accused management of thwarting their unionization drive.
While the Augusta workers failed to unionize their store, employees of another Chipotle—this one in Lansing, Michigan—overcame what More Perfect Union called "egregious union-busting" and voted to join the International Brotherhood of Teamsters Local 243.
During Niccol's tenure, Chipotle also paid to settle child labor law violations in Massachusetts, New Jersey, and Washington, D.C.
According to the Financial Times, Starbucks' decision to oust Narasimhan came after pressure from activist investor Elliott Management and former company CEO Howard Schultz, a notorious union-buster.
Niccol will take over as Starbucks CEO on September 9. Until then, chief financial officer Rachel Ruggeri will serve as interim CEO.
According to the Starbucks Workers United union, employees at more than 470 Starbucks locations across the United States have voted to unionize since baristas at a store on Elmwood Avenue in Buffalo, New York became the first to do so in late 2021.
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Workers in 14 States Launch Largest Starbucks Union Drive Yet
"It's important that we're recognized as people rather than profit machines," said one Louisiana barista. "We don't have another choice but to stand together."
Feb 20, 2024
Employees at 21 Starbucks stores across the United States informed the global coffee giant's CEO on Tuesday that they are launching the largest single-day unionization in company history.
The baristas—who are employed at Starbucks in 14 states—said in a letter to CEO Laxman Narasimhan that they've "decided to follow in the footsteps of over 396 other stores and nearly 10,000 partners to demand better."
Their union, Starbucks Workers United, cited low pay, inconsistent scheduling, and safety concerns as reasons for filing for union elections.
"Though we work at different stores, we are united through our shared experiences and in our demand for higher wages, fair and consistent scheduling, improved benefits, and a safe and dignified workplace," said the workers, who are called "partners" by the company.
"Starbucks has made a habit of prioritizing sales and profits over partner safety," the baristas alleged. "We have worked through violent threats from customers, unsafe weather conditions, and a global pandemic. Despite our willingness to work regardless of this disregard for our health and safety, we have been met with higher and higher expectations without being given the resources to meet them."
The letter continued:
We "partners" demand a say. We are the face of Starbucks. As employees, we deserve the same respect and dignity as the CEO. This dignity includes fair pay, clear communication with all partners, a say in the decisions that affect our day-to-day, better power balance, and manageable expectations. Partners are not merely your workers but human beings, who have the right to pursue happiness outside of our work.
Lizzie Harlow, a barista at a Sulphur, Louisiana Starbucks, toldHuffPost that "it's important that we're recognized as people rather than profit machines."
"We don't have another choice but to stand together," Harlow added.
A Starbucks spokesperson said that the company respects its workers' right to unionize.
"We encourage all partners at stores petitioning for representation to get the facts, make an informed choice, and ensure their voices are heard by voting in neutral, secret-ballot elections," the spokesperson said.
According to the National Labor Relations Board—which has repeatedly taken action against Starbucks' union-busting—Workers United has won more than 80% of the roughly 400 union elections at the company's U.S. stores.
The U.S. is currently experiencing a labor organizing renaissance. According to the U.S. Bureau of Labor Statistics, union membership grew by nearly 200,000 last year alone. From Starbucks to strip clubs, American workers are forming or joining unions at rates not seen in decades.
Public support for organized labor is also its highest level in generations, with 71% of Americans including 88% of young people viewing unions favorably.
However, just 10% of U.S. workers belong to a union—the lowest rate ever recorded.
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Hundreds of Progressive Groups Back Starbucks Union Push as New CEO Arrives
"Instead of continuing on the current path Starbucks has taken, we urge you to create and build a healthy working relationship with unionized partners."
Apr 11, 2023
A progressive coalition representing 62 million people and nearly 500 member organizations on Tuesday urged new Starbucks CEO Laxman Narasimhan to end the coffee giant's hostility toward unioned workers and organizers across the United States.
Since workers in Buffalo, New York won a historic election to form Starbucks' first U.S. union in December 2021, employees at hundreds of locations throughout the nation have started organizing—and have been met with union-busting tactics from the company.
Narasimhan took over for former CEO Howard Schultz late last month, just before Schultz—facing a subpoena threat—testified before the U.S. Senate Health, Education, Labor, and Pensions (HELP) Committee, chaired by Sen. Bernie Sanders (I-Vt.).
Ahead of Schultz's testimony, the HELP Committee released a report pointing to dozens of National Labor Relations Board complaints against Starbucks and explaining that "though the coffee giant claims they are a 'progressive' company, there is mounting evidence that the $113 billion-dollar company's anti-union efforts include a pattern of flagrant violations of federal labor law."
In their Tuesday letter, civil rights, environmental, gender justice, and labor groups wrote to Narasimhan, "It's our hope that you uphold Starbucks' reputation as an inclusive and welcoming third place for the community by taking this opportunity to redefine the company's relationship with Starbucks partners working in cafes, reserve stores, and roasteries across the country."
"While our organizations represent many facets of the progressive movement, we know our fights are inextricably linked to that of Starbucks Workers United."
"We stand by workers exercising their fundamental and constitutional right to form a union," the progressive coalition emphasized. "Freedom of association is a constitutional right, and by joining together to bargain collectively with employers, unions give workers the opportunity to have their voices heard and help make decisions to make meaningful changes in their workplaces."
"Unions are good for workers, businesses, our economy, and our democracy," the coalition continued. "They are vehicles that advance equity across class, race, sexual orientation, gender, and immigration status. While our organizations represent many facets of the progressive movement, we know our fights are inextricably linked to that of Starbucks Workers United. We cannot have justice—racial, gender, immigrant, climate—without economic justice."
The letter concludes by highlighting how Narasimhan can chart a new path: "Instead of continuing on the current path Starbucks has taken, we urge you to create and build a healthy working relationship with unionized partners. We encourage you to affirm workers' legal right to organize a union by signing the fair elections principles and by committing to bargain in good faith with over 7,500 workers who have formed Starbucks Workers United."
Signatories include the AFL-CIO, American Federation of Teachers, Communications Workers of America, Community Change Action, Center for Popular Democracy, Greenpeace, MoveOn, National Education Association, People's Action, Public Citizen, Service Employees International Union (SEIU), Sierra Club, Sunrise Movement, UltraViolet, United We Dream, and Women's March.
"Starbucks has repeatedly, shamelessly, and illegally stood in the way of partners who are demanding a voice in their workplace and a strong contract to build a better future for themselves and their families," said SEIU international president Mary Kay Henry. "Narasimhan has an opportunity to stop the company's unprecedented, unpopular campaign of union-busting and instead partner with its workers and their union to build a Starbucks that truly lives up to its stated progressive values."
\u201cIt's a new day.\n\n@Starbucks has a new CEO, and a fresh chance at striking a new tone with workers!\n\nWe're thrilled to see dozens of groups supporting workers, and we too stand with @SBWorkersUnited. \n\nTell Starbucks you do too: https://t.co/eHu6ZalRT3\u201d— Fight For 15 (@Fight For 15) 1681219847
AFL-CIO president Liz Shuler pointed out that "Starbucks has always referred to its employees as partners" and "under new leadership, the company now has the chance to treat its workers like partners."
Community Change president Dorian Warren noted that Narasimhan could "set a powerful example for corporate America by committing to bargain in good faith with the thousands of workers who make his company's success possible."
"The importance of organizing can never be overstated," Warren added. "We are proud to support the Starbucks workers who are forming unions, and asking for higher wages, better benefits, and more control over their workplace conditions. We cannot forget that unions are one of the most important tools we have to protect and strengthen our democracy and build equity for all."
Group leaders also stressed that they represent millions of members and massive movements that support unionization efforts at Starbucks.
"Women's March unites with Starbucks workers—a workforce that is more than 70% women and women of color—as they organize tirelessly to take on the challenges they face in their workplace," said executive director Rachel Carmona. "This is not just a matter of fairness and justice—but a women's rights issue."
MoveOn executive director Rahna Epting declared that "Starbucks' record to date on unions has been distasteful, disrespectful, and disingenuous."
"Millions of members of MoveOn support workers' rights and want Starbucks to do right by the people who work for your company," she told the new CEO. "Your partners should be able to exercise their rights to freely and fairly organize and negotiate over their working conditions without fear of retaliation."
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