A judge in New York ruled on Friday that Starbucks had violated federal labour law dozens of times in responding to a union campaign in the Buffalo area of the state shortly after the campaign began roughly 18 months ago.
Michael A. Rosas, a judge for the National Labour Relations Board, concluded that Starbucks had illegally monitored, disciplined and sacked workers engaged in union organising; added non-union staff to stores to dilute support for the union; and promised new benefits to workers in an attempt to defuse support for the union.
The ruling calls for the reinstatement of seven Buffalo-area workers who the judge concluded were unlawfully discharged from the company, and back pay and damages 25 workers who the judge concluded had suffered retaliation that affected their compensation, such as a reduction of hours.
In addition, the judge ordered the chief executive of Starbucks, Howard Schultz, to read or be present for the reading of a notice, more than 10 pages long, promising to refrain from committing a series of labour law violations in the future, and to make and distribute a video of the reading.
Because of the company’s ‘egregious and widespread misconduct demonstrating a general disregard for the employees’ fundamental rights,’ Judge Rosas wrote, it was necessary to issue a broad order requiring Starbucks ‘to cease and desist from infringing in any other manner on rights guaranteed employees.’
‘This is truly a historic ruling,’ Gary Bonadonna Junior, the regional head of Workers United, the union organising Starbucks, said in a statement: ‘We will continue to fight and hold billionaires like Howard Schultz accountable for their actions. We will not rest until every Starbucks worker wins the right to organise.’
The ruling can be appealed to the labour board in Washington, and to federal court after that, and Starbucks indicated that it might do so. ‘We believe the decision and the remedies ordered are inappropriate given the record in this matter and are considering all options to obtain further legal review,’ the company said in a statement.
Starbucks’ response to the union campaign has gotten heightened scrutiny recently.
US Senator for Vermont Bernie Sanders on Thursday refused to back down on calls to make Starbucks Corporation interim Chief Executive Officer Howard Schultz, who is stepping down this month, testify at a hearing on the company’s compliance with labour law.
Starbucks has said that it has no plans to send Schultz to a US Senate committee hearing set for 9th March.
In response, Sanders, chairman of the Senate Health, Education, Labour and Pensions Committee’s chairman, said he was ‘shocked and deeply concerned that Howard Schultz would continue to defy a request made by a majority of members on the Senate HELP Committee’.
He said a vote will go ahead on Wednesday March 8th on whether to issue a subpoena for Schultz to appear.
Sanders said: ‘Let’s be clear. Howard Schultz is the founder of Starbucks, he is the CEO of Starbucks, he is the spokesperson of Starbucks, and he will continue to be on the Board of Directors at Starbucks well into the future
‘Schultz has made it clear that he is the driving force of labour policy at Starbucks.’
Starbucks noted Schultz is stepping down as CEO later this month and said he was not the right witness.
It maintained that its Chief Communications and Public Affairs Officer AJ Jones was best positioned to address the staffing matters raised by members of the committee.
The company has also offered to send May Jensen, vice president for partner and labour relations, and Zabrina Jenkins, acting executive vice president and general counsel.
Democrat lawmakers accuse Starbucks of not engaging in fair negotiations with employees who are joining labour unions. The coffee company has rejected the claims and said it values its workers’ right to participate in legal union-related endeavours.
The company said in its letter on Thursday it ‘has an unmatched history as a model employer.’
Employees at more than 280 out of its roughly 9,000 US locations have voted to join a labour union since 2021.
The union is seeking better pay and benefits, improved health and safety conditions and protections against unfair dismissal and discipline.
The Senate committee will also vote on authorising the panel to investigate labour law violations by major corporations.
- Meanwhile, the United States has imposed a fresh raft of sanctions against, what it calls, ‘firms and vessels that have either transported or sold Iranian petroleum or petrochemical products’.
The US Treasury Department’s Office of Foreign Assets Control (OFAC) announced the measures on Thursday.
US Secretary of State Antony Blinken identified the targets of the bans as 11 firms and 20 affiliated shipping vessels, alleging they had facilitated Iran’s petroleum and petrochemical trade.
Two of the sanctioned firms are based in China, while others are based in Vietnam and the United Arab Emirates, according to the OFAC.
The United States lifted some of its sanctions against Iran in 2015, following the conclusion of a nuclear deal between the Islamic Republic and world countries, including the US itself.
Former US President Donald Trump, however, left the deal – which is officially known as the Joint Comprehensive Plan of Action (JCPOA) – and returned the sanctions as part of its trademark ‘maximum pressure’ campaign.
The administration of his successor Joe Biden has alleged an interest in returning Washington to the deal.
In practice, however, it has not only failed to live up to its own words but has also imposed several rounds of additional sanctions of its own against Tehran.
Blinken added: ‘These designations underscore our continued efforts to enforce our sanctions against Iran,’ Blinken added.
Speaking to the media, Iran’s mission to the United Nations denounced the Biden administration for ‘basically repeating the failed maximum pressure policy of the former US government.’
The Islamic Republic has asserted that Washington’s potential return to the accord has to be accompanied by the elimination of all of its sanctions against Tehran.
Echoing the position, the Iranian mission likewise said ‘if the US wants to return to the JCPOA one day, it will be challenging for the US government to lift all of them’.
Elsewhere, the Biden administration is consulting with its allies on the possibility of imposing new sanctions against China if Beijing supplies military equipment to Russia for the war.
Washington is currently talking to its allies like the European Union and the United Kingdom regarding the possibility of applying fresh punitive measures against Beijing providing that it provides military support to Moscow for its war in Ukraine.
According to the sources, the White House is still at the preliminary stage of its consultations with allies aimed at drumming up support from a range of countries, particularly those in the wealthy Group of 7 (G7), in order to coordinate support for any possible restrictions against Beijing.
The United States is consulting with its allies on the possibility of imposing new sanctions against, Russia and Venezuela and Cuba.
