The request comes after Starbucks announced in May that it would raise workers’ wages and add other benefits, such as a credit card tip, by the end of this year. But the Seattle-based coffee chain said it would not offer the enhanced benefits to workers at unionized stores because it must negotiate to make such changes. In a letter to Starbucks CEO Howard Schultz obtained by CNBC, Workers United said the company can legally offer benefits to unionized store employees without bargaining if the union agrees. The letter notes other companywide benefits announced in recent months, including faster accrual of sick time and medical travel reimbursement for employees seeking abortions or gender-affirming care. “Workers United refuses to stand by while Starbucks cynically promises new benefits only to non-union workers and withholds them from our members,” said Workers United president Lynne Fox’s letter to Schultz last month. The letter notes that the union is not waiving any other bargaining obligations Starbucks has under federal law. About 200 Starbucks stores are unionized so far, while 40 have voted not to unionize, according to the National Labor Relations Board. Starbucks has approximately 9,000 locations in the US When contacted about the union’s request, Starbucks pointed to a fact sheet on its website that states: “The law is clear: once a store is unionized, no changes to benefits are allowed without good faith collective bargaining.” The company’s website says workers have access to Starbucks benefits in effect when the union petition was filed, but that any subsequent changes in wages, benefits and working conditions must be negotiated. Attorneys for the workers say the case may end up before an administrative law judge at the National Labor Relations Board. “Once a union is certified, an employer is obligated to negotiate with that union before making any changes to the terms and conditions of employment,” said Stephen Holroyd, an attorney at Jennings Sigmond who has represented unions and worked for the NLRB. But he said the union greenlighting the benefits without bargaining changes the situation and could argue that Starbucks is withholding benefits because of the organizing drive. Daniel Sobol, an attorney with Stevens & Lee who has represented companies in union cases, said the NLRB and federal courts have disagreed on the issue. “If [benefit enhancements are] is done solely to loosen up unionization, that could be a problem,” he said. But with employers adjusting wages to the inflationary environment, he said Starbucks may not be forced to give raises to unionized employees. Gabe Frumkin, an attorney for Starbucks Workers United, said it’s clear the benefits are being offered in response to the union’s effort. He said Workers United has filed two lawsuits related to Starbucks’ wage and benefit announcements for non-union stores and is considering further options. Catherine Creighton, director of Cornell University’s School of Industrial and Labor Relations in Buffalo, New York, said the law requires companies to give the union notice of a new benefit and the opportunity to bargain. But he said that, “if the union says they have no objection, then the employer can certainly give them that allowance.” The wage increases that will take effect this week include at least a 5 percent increase or a move to 5 percent above the market rate, whichever is higher, for employees with at least two years of experience. Employees with more than five years of experience receive a raise of at least 7%, or move to 10% above the market rate, whichever is higher. The raises are on top of a previously announced walkout starting this month that pushes wages to the $15-an-hour minimum nationwide. This increase is available to stores that did not start organizing before it was announced. Starbucks said it plans to spend $1 billion on wage increases, improved training and store innovation during its 2022 fiscal year. When Schultz returned to his role as CEO for a third time, he suspended the company’s buyback program for investments to employees and stores.
