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Starbucks CEO Vows to Bargain ‘Constructively’ With Union

A Starbucks Corp. coffee shop in Chiang Mai, Thailand, on Wednesday, Aug. 7, 2024. Tourism is one of Thailand’s key industries accounting for about 20% of total jobs and making up roughly 12% of the nation’s $500 billion economy. Photographer: Valeria Mongelli/Bloomberg (Valeria Mongelli/Bloomberg)

(Bloomberg) -- Starbucks Corp. Chief Executive Officer Brian Niccol said he’s committed to bargaining in “good faith” with the union representing workers at about 500 stores.

In a letter addressed to union leaders in response to workers’ own missive, Niccol said he wants to ensure the two parties engage “constructively,” even if he would prefer a “direct relationship” with employees. “I am pleased that we are making meaningful progress towards our shared goals,” he said.

A bargaining delegation representing more than 10,500 workers had written to Niccol on Monday urging him to continue “the spirit of mutual respect” and saying the company should “do more to act boldly, be forward thinking, and be the best-in-class in setting standards” for employees.

Earlier this year, Starbucks and its union started talks about how to achieve collective-bargaining agreements and provide a fair process for union organizing, seeking to end an impasse. Niccol’s appointment as Starbucks CEO had raised concern among some at Starbucks that progress would stall, given the response to unionization at his prior employer, Chipotle Mexican Grill Inc.

See also: Chipotle Illegally Singled Out Union Store, NLRB Officials Say

In his letter, Niccol said he was committed to improving baristas’ experience, and that he “deeply respected” workers’ right to join a union.

Starbucks shares have advanced 23% since Niccol was announced as the company’s new CEO on Aug. 13, more than three times the 7.3% advance of the S&P 500 Index over the same period. 

(Adds details from union statement in third paragraph)

©2024 Bloomberg L.P.

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