Starbucks Board Members Facing Shareholder Backlash Over Union Talks

Starbucks shareholders are pushing to remove two board members at the company who they argue have contributed to stalling the coffee chain's long-fought-over union drive. The SOC Investment Group, Trillium Asset Management, Merseyside Pension Fund, the non-profit Shareholder Association for Research and Education (Share), and the New York state and New York City comptrollers wrote a letter to Starbucks shareholders to vote "no" on the re-election of board members Jørgen Vig Knudstorp and Beth Ford at Starbucks's annual shareholders meeting on 25 March.

The shareholders argue that Knudstorp and Ford have failed to address the company's ongoing labor disputes, which have seen over 280 Starbucks stores vote to unionize across the United States. The letter states that the board members' "inaction" has allowed the company to engage in "unlawful union-busting tactics" and has "undermined" the company's relationship with its workforce.

The push to remove the two board members comes as Starbucks faces growing pressure from workers and activists to reach a deal with the newly formed Starbucks Workers United union. The union drive has been met with fierce opposition from the company, which has been accused of intimidating and retaliating against pro-union employees.

{{IMAGE_PLACEHOLDER}}

Knudstorp, the former CEO of Lego, and Ford, the CEO of Land O'Lakes, have been on the Starbucks board since 2017 and 2021 respectively. The shareholders argue that their leadership has contributed to the company's failure to reach a union agreement, which they say has damaged Starbucks' reputation and put the company at legal risk.

"Starbucks' refusal to bargain in good faith with the union has damaged its reputation and exposed the company to significant legal and financial risks," the letter states. "We believe Jørgen Vig Knudstorp and Beth Ford's inaction on this issue has undermined the company's relationship with its workforce and put shareholder value at risk."

{{IMAGE_PLACEHOLDER}}

The Starbucks union drive has become a major test case for the labor movement in the United States, with the company's response drawing intense scrutiny. The company has been accused of violating federal labor laws and engaging in a range of union-busting tactics, including closing stores, firing pro-union workers, and subjecting employees to mandatory anti-union meetings.

The shareholders' push to remove Knudstorp and Ford is the latest escalation in the battle between Starbucks and its workers. The company has so far refused to recognize the union or engage in meaningful negotiations, despite the growing number of unionized stores.