Federal labor regulators have accused Starbucks of engaging in illegal union-busting tactics by closing 23 stores, including the "Big Gay Starbucks." A complaint from the National Labor Relations Board's regional office alleges that Starbucks shuttered these establishments either in response to union activities or to dissuade employees from engaging in such efforts. Notably, seven of the closed stores had successfully unionized.
This accusation adds to a litany of complaints against Starbucks over the past two years, as federal officials claim the company has repeatedly violated labor laws during its ongoing labor campaign. The case is set to be brought before an administrative judge next summer, unless Starbucks opts for an earlier settlement. The complaint seeks not only the reopening of the stores but also compensation for employees' lost earnings, benefits, and other costs incurred due to the closures.
Mari Cosgrove, a Starbucks employee and representative of the union Workers United, expressed concern, stating, "This complaint is the latest confirmation of Starbucks’ determination to illegally oppose workers’ organizing."
Starbucks, in response, maintains that its routine evaluation of store portfolios is standard business practice. However, scrutiny has intensified as more than 100 complaints of illegal behavior, including threats and retaliation against pro-union workers, have been filed against the coffee giant.
The union campaign, which began in Buffalo, New York, in 2021, has gained traction nationwide, with over 350 of Starbucks' approximately 9,300 corporate-owned locations now unionized. Notably, this movement gained significant momentum in November 2023 when over 5,000 Starbucks workers from more than 200 stores staged a walkout during Red Cup Day. This nationwide demonstration was a powerful display of solidarity with unionizing Starbucks stores across the country.
Despite these efforts, none of the unionized stores have successfully negotiated a labor contract with the company.
The latest complaint reveals that Starbucks managers announced the closure of 16 stores in July 2022, followed by additional closures over the subsequent months. An administrative judge had previously ruled that Starbucks had illegally closed a unionized store in Ithaca, New York, ordering workers reinstated with back pay—a decision the company has contested through an appeal.
Coinciding with the new complaint, Starbucks released a nonconfidential version of an external assessment of its practices related to labor rights. Conducted by Thomas M. Mackall, a former management-side lawyer and labor relations official, the report found no evidence of an "anti-union playbook." However, Mackall suggested that Starbucks officials responding to the union campaign may not fully comprehend the constraints outlined in the company's Global Human Rights Statement, which commits Starbucks to respecting employees' freedom of association and participation in collective bargaining.
While the report claims Starbucks has no intention of deviating from its principles, it acknowledges areas for improvement in adhering to these principles, leaving the fate of the "Big Gay Starbucks" and the broader labor campaign uncertain.