Believes Starbucks’ series of labor-related
promises and governance reforms represent a clear acknowledgment
that change is needed and that the Board’s oversight of human
capital strategy must improve
SOC recently nominated three independent
candidates for the Starbucks Board with relevant experience to
enhance human capital management practices, facilitate constructive
outcomes for labor issues and oversee engagement with policymakers
and regulators
The Strategic Organizing Center (the “SOC”), a shareholder of
Starbucks Corporation (Nasdaq: SBUX) (“Starbucks” or the
“Company”), today addressed the recent series of labor-related
announcements and statements issued by the Company.1 Previously, on
November 21, 2023, the SOC announced it had nominated three
director candidates – Maria Echaveste, Hon. Joshua Gotbaum and
Wilma Liebman – for election to the Starbucks Board of Directors
(the “Board”) at the upcoming 2024 Annual Meeting of Shareholders
(the “Annual Meeting”).
The SOC is a coalition of labor unions, including the Service
Employees International Union (“SEIU”). The SOC-affiliated unions
represent more than 2.3 million union members.
Today, the SOC stated:
“Since the SOC made clear its intention to nominate directors
for election to Starbucks’ Board at the upcoming Annual Meeting,
the Company has issued numerous announcements related to its
purported commitment to improving relations with its employees.
These have included the formation of a new Board committee, a
public letter to Workers United seeking to reengage negotiations
and a letter to shareholders regarding the proposal that received
majority support at the 2023 Annual Meeting of Shareholders asking
for a report on Starbucks’ labor practices.
While the optimistic view would be to see some of these steps as
encouraging, the reality is that we will only be able to judge
their significance based on what the current Board does, not what
it says.
The timing of this flurry of activity is also not a coincidence.
While we recognize some of these announcements may have been in the
works prior to the Company becoming aware of the SOC’s decision to
put forward directors, we believe this level of response, in the
aggregate, represents a clear acknowledgment that the Board’s oversight of its human capital strategy has been
severely misguided and that even Starbucks recognizes that change
is needed.
Notably, Starbucks’ own report, released on December 13, 2023,
states that the Company did not understand or give consideration to
its labor rights commitments in the context of recent organizing.
The report repeatedly references Starbucks’ weak governance during
the emergence of union organizing activity in 2021 and contains
myriad examples of the Company’s actions allegedly taken in
opposition to workers’ organizing, which resulted in adverse
Administrative Law Judge decisions. Ironically, on the same day as
the report’s release, the National Labor Relations Board (“NLRB”) –
the federal agency responsible for protecting workers’ rights –
issued a complaint alleging that Starbucks unlawfully closed 23
union and non-union stores across the country.2 The NLRB ordered
the Company to immediately reopen these stores and make workers
whole, among other measures.
Since November 2021, the NLRB has issued over 120 complaints
against Starbucks, covering about 420 charges of violating federal
labor law. We believe the current Board’s failure to properly
oversee the Company’s response to these and other human
capital-related issues has directly increased operational, legal
and reputational risks for Starbucks over the past several
years.
If Starbucks and its Board are truly serious about repairing the
relationship with the Company’s workers and beginning to undo the
damage to the value of its brand, the SOC believes our candidates
have the experience to help. Our nominees – Maria Echaveste, Hon.
Joshua Gotbaum and Wilma Liebman – can bring fresh perspectives and
the right experience enhancing human capital management practices,
facilitating constructive outcomes for labor issues and
successfully engaging with policymakers and regulators. These are
the skillsets urgently needed on the Board to help safeguard the
best interests of Starbucks’ shareholders, customers and employees.
For more on our nominees, including their full biographies, see
here.
Ultimately, we hope the Board is sincere about wanting to
strengthen ‘Starbucks’ governance framework’ and reset its
relationship with its employees.3 However, as the Company’s own
actions make clear, the status quo is not working.”
DISCLAIMER
This material does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities described
herein in any state to any person. In addition, the discussions and
opinions in this press release and the material contained herein
are for general information only, and are not intended to provide
investment advice. All statements contained in this press release
that are not clearly historical in nature or that necessarily
depend on future events are “forward-looking statements,” which are
not guarantees of future performance or results, and the words
“will,” “anticipate,” “believe,” “expect,” “potential,” “could,”
“opportunity,” “estimate,” and similar expressions are generally
intended to identify forward-looking statements. Any projected
results and/or statements contained in this press release that are
not historical facts are based on current expectations, speak only
as of the date of this press release and involve risks that may
cause the actual results to be materially different. Certain
information included in this press release is based on data
obtained from sources considered to be reliable. No representation
is made with respect to the accuracy or completeness of such data,
and any analyses provided to assist the recipient of this press
release in evaluating the matters described herein may be based on
subjective assessments and assumptions and may use one among
alternative methodologies that produce different results.
Accordingly, any analyses should also not be viewed as factual and
also should not be relied upon as an accurate prediction of future
results. Any figures are unaudited estimates and subject to
revision without notice. The SOC disclaims any obligation to update
the information herein and reserve the right to change any of their
opinions expressed herein at any time as they deem appropriate.
Past performance is not indicative of future results.
IMPORTANT INFORMATION
The SOC, the SEIU, Mary Kay Henry, Ahmer Qadeer, Michael Zucker,
Maria Echaveste, Joshua Gotbaum, and Wilma B. Liebman
(collectively, the “Participants”) intend to file a definitive
proxy statement and accompanying proxy card (the “Proxy Statement”)
with the SEC to be used to solicit proxies in connection with the
2024 annual meeting of shareholders (the “Annual Meeting”) of
Starbucks Corporation (the “Company”). All shareholders of the
Company are advised to read the Proxy Statement and other documents
related to the solicitation of proxies, each in connection with the
Annual Meeting, by the Participants when they become available, as
they will contain important information, including additional
information related to the Participants. The Proxy Statement and an
accompanying BLUE proxy card will be furnished to some or all of
the Company’s stockholders and will be, along with other relevant
documents, available at no charge on the SEC website at
http://www.sec.gov.
Information about the Participants and a description of their
direct or indirect interests by security holdings or otherwise is
contained in Exhibit 1 to the Schedule 14A filed by the
Participants with the SEC on December 19, 2023. This document is
available free of charge from the sources described above.
1 Relevant Company announcements and statements include: (i)
press release, dated November 20, 2023, “Starbucks Announces
Intention to Establish New Environmental, Partner and Community
Impact Board Committee Focused on Oversight of Stakeholder
Promises”; (ii) letter, dated December 8, 2023, “Message from Sara:
Our Outreach to Resume Contract Bargaining with Workers United”;
(iii) letter, dated December 11, 2023, “Letter from Starbucks ceo:
Affirming what we stand for”; and (iv) statement, dated December
13, 2023, “Starbucks Reaffirms Its Commitment to the Principles of
Freedom of Association and the Right to Collective Bargaining.” 2
NLRB complaint filed December 13, 2023 (see complaint here). 3 The
Company’s “Abridged Report to Starbucks Board of Directors
Concerning Starbucks’ adherence to freedom of association and
collective bargaining commitments in its Global Human Rights
Statement” (see full report here).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231220488892/en/
Investor Contact Okapi Partners Bruce Goldfarb / Pat
McHugh, (212) 297-0720 info@okapipartners.com
Media Contacts Longacre Square Partners
soc-sbux@longacresquare.com
Starbucks (NASDAQ:SBUX)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Starbucks (NASDAQ:SBUX)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024