Starbucks Corp (NASDAQ:SBUX) has committed “missteps” according to an audit of the company’s relationships with unionization efforts at hundreds of its US locations but did not explicitly utilize an “antiunion playbook.”
Shareholders requested the third-party investigation in March after Starbucks Workers United, which represents unions at more than 300 stores, accused the coffee chain of acting in bad faith.
While there was no evidence of an antiunion playbook, the probe criticized Starbucks’ communication with unionized stores, citing a lack of preparation and inexperience among staff in working with unions.
Workers United, by contrast, “prepared thoroughly for its organizing efforts, had careful top-down leadership, and was effective at leveraging Starbucks’ early missteps to frame a "Starbucks is antiunion’ narrative,” the report said.
Notably, the report found that employees have been let go at the same rate at union and non-union stores.
Going forward, though, Starbucks could implement more transparency with its termination standards, the report said, noting the public attention that often accompanies firings at union stores.
“Even well-intentioned managers operating in a delicate environment can have difficulty navigating the nuanced boundaries between that which is lawful and appropriate and that which is not,” according to the report.
Still, Starbucks has been hit with more than 100 complaints from the National Labor Relations Board alleging union-busting practices, including closing stores, discharging union leadership and negotiating in bad faith.
In 36 cases, Starbucks was ordered to reinstate fired workers.
Starbucks has denied wrongdoing.
Shares of the coffee giant traded 0.9% lower midday Wednesday at $97.25.