Starbucks coffee union pitch is bitter

OPINION:

A union problem has been brewing at Starbucks. According to Starbucks Workers United, the coffee company’s new labor union, employees at over 150 locations (out of more than 300 newly unionized stores) are participating in “Strike With Pride.”

Why the hubbub? Because some pro-union Starbucks baristas are accusing their employer of preventing them from putting up Pride Month decorations. Starbucks, a longtime supporter of the LGBTQ movement, predictably denies the accusations.

But the labor dispute at Starbucks has little to do with celebrating Pride Month. Labor organizing campaigns typically manufacture small grievances to keep the momentum of their fight fresh (wall-trimming disputes now qualify for a work stoppage).

These complaints come in pursuit of a larger issue: a new income stream from forced union dues. The potential billions in union revenue justify harassment and intimidation of employees.

In Starbucks’ case, union organizers affiliated with the Service Employees International Union have been known to block store entrances and exits, make threats, and yell profanities during their on-again, off-again demonstrations against the company, hoping to weaken the resolve to stay union free.

Starbucks and the union have held preliminary collective bargaining talks at dozens of locations, but the two sides have yet to strike a deal for a new contract. The National Labor Relations Act requires only that parties bargain in “good faith,” with no requirement to reach an agreement.

In the event of an impasse, the union can pressure employers by taking employees out on strike to force a deal. For most employees, a strike and picket lines are not the benefits package the union promised.

And with 9,000 Starbucks locations, threatened work stoppages at fewer than 3% of the stores provide minimal economic risk. Consequently, the union grows more desperate by the day in trying to square that circle.

According to Workers United, union members deserve “wages that give [them] economic security.” What that means — in dollar terms — is a mandatory hourly wage of $20 to $25 an hour, or almost $53,000 per year. That is higher than the median household income in many states. Then there are the benefit package demands that are more typically found in companies making cars versus making coffee.

The real losers in this company vs. union drama are the Starbucks employees. While the company regularly increases pay and benefits for the nonunionized 97% of their stores, the law suggests they can’t treat union employees similarly until the union and company agree on compensation (that decision is being contested and will take years to resolve).

When a labor union gains a foothold in any workplace, current law makes it nearly impossible for newly enlisted union members with second thoughts to reverse their decision. Buyer’s remorse has set in among some baristas. Look no further than one Starbucks location in Oklahoma where employees are hoping to decertify Workers United five months after voting to unionize.

But even if 100% of the employees wished to decertify the union, the National Labor Relations Board will dismiss the petition, as the law gives union bosses one year to gain a contract before they can be voted out.

All of the unionized Starbucks stores without a contract since 2022 will begin lapsing this year. With time and money invested in selling employees visions of sugar plums dancing in their heads, the union can’t afford the public relations embarrassment of a steady stream of rejections.

Expect the union to make spurious claims of labor law violations that delay new scheduled decertification elections.

Currently, federal proposals, including the Employee Rights Act, would provide workers with enhanced democracy in voting to join or reject current union representation. But with a divided government and President Biden’s mission to be the most pro-union (not pro-employee) commander in chief in U.S. history, reform is unlikely in the near term.

Unfortunately, Starbucks employees are stuck between a hazelnut latte and a hard place.

• Rick Berman is president of RBB Strategies.