Starbucks’ Surprise Labor Pivot Could Spur a New Unionization Wave

-- Starbucks Corp.’s new commitment to work with its main union to end hostilities and hash out a fair process for labor organizing is a landmark moment for labor relations — both at the coffee chain that’s long resisted organizing, and far beyond it. But they open a new era for the company, whose then-chief executive officer, Howard Schultz in 2022 warned of companies “being assaulted, in many ways, by the threat of unionization.” He also told employees, “We didn’t get here by having a union.” Almost a year ago, Schultz officially handed the company’s reins to Laxman Narasimhan, who from his early days at the company has professed a commitment to understanding workers’ experiences and rebuilding Starbucks’ culture. In December, Starbucks said it reached out to Workers United to attempt to restart a dialogue, with the goal of completing “bargaining and the ratification of contracts in 2024.” Tuesday’s agreement marks the first signs of progress after the company’s outreach. “It will spur more unionization, that’s for sure,” as organizers can now tell baristas, “we forced them, so join us,” said labor historian Nelson Lichtenstein, a professor at the University of California at Santa Barbara. “If this kind of campaign results in moving a company like Starbucks, I think a lot of workers are going to say, ‘You know what, I think we can move my company, too.’” After years of organizing without winning contracts, said Block, “There was a real question about how sustainable the campaign was.” Now, she said, the question instead is just, “How far can it go?” Like Microsoft Corp.’s agreement to partner with a labor union and not oppose organizing drives, Starbucks’ pivot sends a signal to other executives as well, said Block, offering an alternative to all-out warfare.