The US Starbucks Employees Union Coalition sent a letter to the US Securities and Exchange Commission, calling on the company to disclose costs arising from anti-union campaigns, which the coalition estimates at more than $240 million.
This comes as it faces a significant decline in sales due to the boycott in many countries, most notably the countries of the Middle East and North Africa.
The coalition stressed the importance of transparency in making informed voting decisions ahead of the 2024 annual meeting scheduled for 13 next month.
Costs identified by the Center for Strategic Organizing (a coalition of North American labor unions) include litigation-related matters, lost employee time, and potential liabilities associated with labor law violations.
Starbucks, which is facing a national movement to consolidate its stores, witnessed a landmark moment last November, when members of the United Workers Union went on strike during a major promotional event, during which they demanded improved hiring conditions and schedules.
The CEO of the world’s coffee giant, Starbucks, Laxman Narasimhan, announced negative expectations and a decline in annual sales, pointing to the “significant impact on traffic and sales” in the Middle East due to the Israeli war on the Gaza Strip. The repercussions extended to the United States, where the giant coffee company also faced boycotts.
Starbucks faces the challenge of maintaining its brand reputation in light of these influences. The day after the company filed a lawsuit against its employees’ union, on charges of supporting Palestine, campaigns escalated on social media platforms, calling for a boycott of the famous American coffee chain in the Arab world.
Narasimhan acknowledged that the boycott was partly a response to legal action taken against labor unions last October. In a letter to employees last December, Narasimhan expressed concern about protesters being influenced by misinformation on social media about Starbucks’ values.
While Starbucks faces these dual challenges, the upcoming annual meeting is a critical turning point, as shareholders will choose a new board of directors consisting of 8 members.
