Starbucks stock outperforms retail averages even as labor battles rage on
Scott Olson

Starbucks Corporation (NASDAQ:SBUX) faces a lawsuit in South Carolina from a small group of employees from a single store in the state. The legal action accuses the company of defamation over its response to a union protest.
The group claims in the lawsuit that the coffee chain giant falsely and maliciously portrayed them as criminals in statements made to the police on August 1 for the "illegitimate collateral purpose" of preventing plaintiffs from publicly protesting. During the incident, the Starbucks (SBUX) store manager reported the workers to local law enforcement because she said they would not let her leave until they got a raise and that one of them assaulted her.
Starbucks (SBUX) defended the store manager in an August post on its website and said it was cooperating with law enforcement while also conducting its own investigation.
"We fully respect our partnersâ right to organize but no one, regardless of their interest in a union, is exempt from the standards we have always held -- that everyone in our stores can expect to be treated with dignity and respect and work in a warm, welcoming, inclusive environment."
At the time, a police investigation found no merit in Starbucksâ claims that the activists had committed kidnapping or assault against the manager.
The lawsuit is just another development in the slow-playing battle between Starbucks (SBUX) and employees at certain stores. The Starbucks Workers United has prevailed in elections at around 250 of the company's 9K corporate-run U.S. stores over the past year, with several of those involving the sides trading accusations on the votes.
Shares of SBUX are up 2.37% in midday trading on Monday and have topped broad retail averages over six weeks, 90-day and six-month tracking periods.