SOC labor coalition accuses Starbucks of ‘flawed’ union strategy

A coalition of unions is laying out its case against Starbucks ahead of a proxy fight at its annual meeting in March, arguing the coffee giant has implemented a “flawed human capital management strategy” in response to a yearslong union movement.

The Strategic Organizing Center claims the situation has put the company at reputational risk, diminishing shareholder returns and isolating customers, based on polling conducted for a shareholder presentation. The coalition is pushing to replace three current Starbucks board members with its own nominees. It plans to file the investor presentation with the U.S. Securities and Exchange Commission on Tuesday.

“The Board’s anti-union strategy has resulted in one of the most glaring and destructive examples of human capital mismanagement in modern U.S. history,” the proxy presentations reads, according to a copy viewed by CNBC. “Starbucks’ aggressive unionization response has not only failed to resolve the Company’s dispute with employees — it has made the problem worse.”

In response, Starbucks said in a statement that its board is “stocked with world-class business leaders that bring the qualifications and expertise directly relevant to drive our current operations and future success,” adding, “with partners at the heart of our business, we have continued to significantly invest in and improve their experience, including the over 20% of profits that have gone into wage increases, training, and new equipment in the last fiscal year.”

Baristas at nearly 400 Starbucks-owned cafes have voted in favor of organizing since the end of 2021, when the first location in Buffalo unionized successfully. The company has a footprint of some 16,000 cafes, between owned and licensed locations.

Howard Schultz returned as Starbucks CEO as the union battle, sparked by younger workers at the coffee chain, escalated. He stepped down last year as Laxman Narasimhan took the reins. At the end of last year, Starbucks said it wanted to resume…