Starbucks is challenging a labor watchdog’s power in a far-reaching Supreme Court case
Big Coffee’s labor fight pours over… into the US’s highest court. SCOTUS yesterday heard arguments in Starbucks’ case against the National Labor Relations Board (NLRB), the federal agency that enforces worker rights. The nearly $100B java chain essentially asked the court to make it tougher for the NLRB to step in when it believes companies are illegally interfering with union drives. Experts say the ruling (expected by June) could have a venti influence on US labor’s momentum.
The case: In 2022, Starbucks fired seven employees who were leading a unionization effort. The NLRB said the move broke US labor law and ordered Starbucks to rehire the “Memphis Seven.”
Order up: The NLRB, which can’t impose fines, got the workers rehired using an injunction. Starbucks — which has received 12 NLRB injunctions in two years — wants a stricter process for granting them.
Taste test: Animosity between Starbucks and Workers United — the union organizing 10K+ Starbucks workers at 420 stores — appears to be cooling. The two sides are set to return to the bargaining table today for the first time in nearly a year.
Boardrooms v. labor board… Under the labor-friendly Biden admin, the NLRB has gotten more aggressive. That’s rankled corporates dealing with high-profile union pushes. In addition to Starbucks, SpaceX, Trader Joe’s, and Amazon have all challenged the constitutionality of the nearly 90-year-old agency.
SCOTUS could tip the labor scales… Labor supporters say that a ruling against the NLRB could hamstring labor battles across the US, in industries ranging from automaking to entertainment. Last year over 100K workers organized under the NLRB’s watch— a more than 20-year high.