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

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.

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