Starbucks unlawfully withheld raises from union workers labor board says

Starbucks Coffee has been accused of withholding salary raises from union workers. The National Labor Relations Board stated that the coffee chain company illegally withheld benefits and wages of baristas who are members of a union.

As per Fox Business, Starbucks did not release the wage raises for its thousands of baristas who are part of the unionized workers’ group. The labor council is now aiming to collect and get back all the pay and benefits of the workers for their services since May.

In a new complaint, the NLRB said that the company’s move to hold back the wages was definitely illegal. This accusation comes in the midst of a campaign by the company and Howard Schultz, its interim chief executive officer, to squash the unionization efforts at its locations across the United States.

Aside from the goal of getting the back payments and benefits for the baristas, the labor council also wants Shultz to personally read a statement to staff about their union rights. The affected workers have joined the Starbucks Workers United union, and their pay has been withheld since, as per the reports.

In response to NLRB’s allegations, Starbucks dismissed the complaints. The company’s spokesperson, Reggie Borges, said in a statement that was sent via an email, “We have been clear in that we are following NLRB rules when it comes to unilaterally giving benefits.”

The labor board still insists that Starbucks refused to give the benefits and raises to the union workers to discourage any organization of unions. The coffee chain giant also refuted this allegation. It was noted that more than 230 branches of the company have voted to join the Starbucks Workers United union since the latter part of 2021.

The workers believe that Starbucks’ actions are “clear retaliation” against unionization efforts, and the country’s labor council seems to side with them. It was also mentioned that the company has been closing down stores that have been unionizing, and in fact, the Starbucks Workers United said there were staff at two stores in Seattle, Washington and Kansas City, Missouri, who were told last week that their locations are closing.

Beam Media reported that the NLRB said Starbucks’ failure to extend the wage raises and benefits to union workers is a violation of the National Labor Relations Act. Finally, the coffee chain can try to settle the issues soon, or if it is not able to, the Administrative Law Judge will schedule a hearing to tackle the matter on Oct. 25.