Starbucks' First Union Formation Possible... Employees at 3 New York Stores Vote in Favor or Against

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] The vote to decide whether to establish the first labor union at Starbucks, the world's largest coffee chain, will begin this week.

According to Bloomberg on the 7th (local time), the U.S. National Labor Relations Board (NLRB) plans to send voting mail to employees at three Starbucks stores in Buffalo, New York, on the 10th. Employees will vote over four weeks to decide whether to establish the union.

Only about 100 employees will receive voting mail from the NLRB. However, considering Starbucks' symbolic significance, analysts say this could be an important turning point in the U.S. labor movement. Former NLRB Chair Wilma Liebman said, "There is a greater meaning beyond the number of employees participating in the vote," adding, "If a union is established at Starbucks, unionization efforts at other companies could spread like wildfire."

Employees in the Buffalo area, who began discussing the union about two years ago, have been formalizing discussions since last summer. The demand for a safe working environment increased after COVID-19, and the difficulty in hiring new employees has increased the workload. Employees held several private meetings at competing coffee shops and publicly announced in August their intention to join the North America Service Employees International Union (SEIU) branch.

Starbucks mobilized even founder Howard Schultz to block the union formation. On the 6th, Schultz held a meeting at the Hyatt Hotel in downtown Buffalo to persuade Buffalo employees. Starbucks encouraged early closure of Buffalo stores to promote attendance at the event organized by Schultz. At the meeting, Schultz emphasized Starbucks as a differentiated company, stating, "No outsider will succeed in pressuring or cleverly manipulating us."

In a letter to employees posted on the Starbucks website, Schultz expressed sadness and concern upon hearing that employees were trying to form a union to get what they want.