Labor unions end proxy fight at Starbucks after bargaining progress

A group of labor unions is ending its proxy fight at Starbucks, a person familiar with the matter told CNBC, after the two sides agreed last week to work toward a “foundational framework” on collective bargaining.

The cessation comes after two influential proxy advisors, Institutional Shareholder Services and Glass Lewis, both recommended that shareholders vote for management nominees.

The labor group, the Strategic Organizing Center, argued that Starbucks had responded to a yearslong union push with a “flawed” strategy that diminished shareholder returns and presented reputational risk.

The SOC had been pushing to replace three current Starbucks directors with their own nominees. The labor group said in its proxy filings that the company’s response to widespread unionization efforts had cost the company nearly $250 million.

The fight would have been unusual given the small size of the SOC’s economic interest and the composition of the group.

Reuters first reported that the SOC was ending its proxy fight.

This is a developing story. Please check back for updates.