Starbucks looks to counter union push with better benefits
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Starbucks Corporation (NASDAQ:SBUX) interim CEO Howard Schultz told leaders of U.S. stores that new benefits being developed for employees will not be able to be extended legally to unionized locations due to federal laws on negotiating contracts for union workers.
As part of a strategy to prevent more stores from voting for unionization, Schultz stated that he is reviewing the benefit packages for employees with an aim at making them more attractive.
"People who might be voting for a union donât really understand, let alone the dues they are going to pay," noted Schultz.
The union push at Starbucks (SBUX) appears to be growing. The National Labor Relations Board said it has certified unions at eight Starbucks locations and almost 200 have petitioned to hold elections. Starbucks (SBUX) operates about 9,000 stores in the U.S.
Shares of Starbucks (SBUX) trickled up 0.16% in premarket trading to $81.05 vs. the 52-week trading range of $78.92 to $126.32.