MYNORTHWEST NEWS

Union push among Starbucks workers an ‘evolving backdrop’ of ‘uncertainty,’ says retiring CEO

Mar 16, 2022, 2:22 PM | Updated: Mar 17, 2022, 6:49 am

starbucks...

A Starbucks outlet on March 10, 2022, in Seattle, Washington. (Getty Images)

(Getty Images)

Hours before the Starbucks annual shareholders meetings on Wednesday, the coffee company announced that CEO and President Kevin Johnson would be retiring before the end of the year, with plans to begin transitioning out in April.

Starbucks CEO Kevin Johnson retiring, Howard Schultz to serve in interim role

In Seattle, the original stomping grounds for the now international beverage outlet, there are four locations that have filed for union elections, including the flagship roastery on Capitol Hill. To date, more than 100 locations throughout the United States have filed for union elections, six of which have successfully unionized with Starbucks Workers United, an affiliate of Service Employees International.

In a Wednesday presentation before Starbucks’ board of directors and its shareholders, Johnson addressed the burgeoning labor movement, emphasizing the benefits that Starbucks provides to its baristas, which the company denotes as “partners.” He called out discounted shares through Bean Stock, tuition assistance through an online Arizona state college program, and the recent push to raise wages with a $1 billion investment in incremental increases and training hours.

“I want to make this about our partners. It is about all of us, and that is why I want to kick off the first part of today’s meeting by recognizing and celebrating Starbucks partners,” Johnson said.

“I recognize the evolving backdrop of union discussions continues to present uncertainty, requires more progress, is a point on which different views exist,” he continued. “But I want to assure our partners that, no matter the outcome, Starbucks’ fundamental commitment to its partners will remain. We have always been a people focus company dedicated to doing right by our partners and our customers. Staying true to the vision of our Starbucks is the only true path forward. What is unfolding in the world around us in many ways is unfathomable.”

On Tuesday, an investment firm on behalf of Starbucks shareholders wrote to the board, calling on the company to respect the right of employees to organize and collectively bargain.

With four Seattle Starbucks pushing to unionize, one greenlights election date

The letter highlights concerns that Starbucks has engaged in anti-union action “incongruent with national labor and international human rights laws.”

Prior to the election, it was reported that the company attempted to frustrate efforts by holding captive audience meetings, temporarily closing stores associated with organizing activity, and sending senior management for additional “training,” among other actions.

The meeting touted Starbucks’ financial gains in the last fiscal year: a 31% stock value increase year over year for $86 to $113, and consolidated revenue growth year over year of 21% to $29.1 billion. The Wall Street Journal reports that Starbucks’ shares are down 24% in the last 12 months. The meeting also affirmed that cash payments to Johnson agreed to in 2019 — a $50 million, 3-year retention bonus — is not likely to be paid, and the company no longer plans to make future performance awards in cash.

MyNorthwest News

Image: Brightly colored eggs are set on a table on the South Lawn of the White House in Washington,...

Ted Buehner

Expect good Easter weekend weather for egg hunts, chilly evening Mariners games

Both Saturday and Sunday of Easter weekend will feature temperatures warming to around 60 degrees across much of Western Washington.

5 hours ago

Taylor Swift performs onstage during the Taylor Swift | The Eras Tour at Lumen Field on July 22, 20...

Micki Gamez, KIRO Newsradio and Bill Kaczaraba, MyNorthwest

Seattle tourism dollars break records following All-Star Week, Taylor Swift

It was a record-setting year for dollars flowing into Seattle from tourists.

6 hours ago

Image: A bridge in Carnation....

Julia Dallas

Carnation frustrated with Seattle again after 8th false emergency alarm induces widespread panic

Carnation citizens have faced a series of panic-inducing alarms after SPU's system for the Tolt Dam falsely sounded eight times.

7 hours ago

Grocery store shopper...

Bill Kaczaraba

Ways to deal with Seattle grocery store sticker shock

Seattle grocery store sticker shock continues to play havoc on locals, but there are ways to counter high prices.

7 hours ago

belltown hellcat social media...

Frank Sumrall

Infamous ‘Belltown Hellcat’ social media influencer charged with reckless driving

The social media influencer has been accused of driving 107 miles per hour through Belltown in a Dodge Hellcat.

9 hours ago

KIRO Newsradio gracie awards...

MyNorthwest Staff

KIRO Newsradio anchors receive Gracie Awards for outstanding work

Heather Bosch and Lisa Brooks, anchors at KIRO Newsradio, have been honored by the Alliance for Women in Media with prestigious Gracie Awards.

12 hours ago

Union push among Starbucks workers an ‘evolving backdrop’ of ‘uncertainty,’ says retiring CEO