Starbucks Faces Union Boycott and Investor Pressure
The Strategic Organizing Center's affiliated investment advisory group, SOC Investment Group (SOC IG), has filed a shareholder proposal to separate Starbucks' CEO and board chair roles. This move follows calls from the union Starbucks Workers United for consumers to boycott the coffee chain until it settles its contract with approximately 12,000 workers. The ongoing labor dispute began in April 2024 when tentative agreements were reached but no full contract was finalized. Despite a multi-year turnaround plan under new CEO Brian Niccol that has improved traffic and sales performance, the union claims there has been 'significant backsliding' on labor relations. The SOC IG argues separating leadership roles would enhance board independence while allowing the CEO to focus more effectively. Starbucks did not immediately respond for comment. Previous consumer boycotts by Starbucks Workers United have had limited impact so far, but a broader campaign could challenge its recent momentum.
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Topics: Activist Investors Labor Relations Management Changes Unionization