Starbucks resumes negotiations with unions after thawing relations

Starbucks The union representing baristas will resume contract talks on Wednesday, ending a long impasse.

The two sides will return to the negotiating table after February announcing they have found a “constructive way forward” in mediation talks over the union’s lawsuit over the use of the Starbucks brand. It marks a major shift for Starbucks, which has spent the past two years battling unionized workers and the broader cafe union movement.

About 500 Starbucks companies in the U.S. have voted to join the United Workers union since the first election in December 2021, according to a National Labor Relations Board survey on Monday. But none of these locations, which represent a fraction of the total U.S. footprint, are close to a collective bargaining agreement.

Unions affiliated with Starbucks and the Service Employees International Union had previously bargained, but negotiations quickly reached an impasse. Both sides have accused the talks of sabotage.

Starbucks previously insisted on face-to-face discussions via Zoom without a representative present. The union accused Starbucks of using excuses as a delaying tactic. This time, about 150 union representatives will be present in person for bargaining, with hundreds more participating remotely in addition to in-person meetings.

Store contracts will be negotiated and approved individually, but the union can make proposals that affect all Starbucks employees it represents. Labor unions have pushed heavily for higher wages and more flexible schedules, among a host of other priorities.

Labor laws do not require employers and unions to reach a collective bargaining agreement, only that both parties negotiate in good faith. After a year, workers who have lost faith in their union can petition for decertification, bringing a sense of urgency to negotiations.

The NLRB has 19 pending decertification petitions. The labor board rejected 18 other petitions to debar Starbucks citing unfair labor practices.

The company said it is also in talks with other unions representing its cafes, such as the International Brotherhood of Teamsters, which is negotiating for a store outside of Pittsburgh.

The resumption of contract talks comes a day after another significant moment for Starbucks and the union. The company appealed to the Supreme Court on Tuesday, asking a lower court to grant an injunction sought by the NLRB to reinstate seven laid-off employees at a Memphis cafe.

Starbucks argued that other agencies seeking injunctions had a higher threshold for obtaining an injunction than the Labor Board. Experts say the Supreme Court’s final verdict could weaken the National Labor Council and labor unions. The court is expected to announce its verdict this summer.

Starbucks may share more information about union negotiations during its quarterly earnings call. The coffee giant is expected to report results on Tuesday.