Something’s Brewing at Starbucks

Employees at four Starbucks stores in New York City have petitioned to unionize through the National Labor Relations Board. This development follows months of efforts to unionize at three Buffalo Starbucks locations, two of which have already successfully established unions. The NYC Starbucks employees have requested to hold a vote on March 3.

In letters to Starbucks president and CEO Kevin Johnson, workers from the four stores expressed concerns about deteriorating work conditions during the pandemic and unfair salaries. The employees have received support from more than 70 New York elected officials, including City Council members and U.S. representatives, according to the New York Times. A signed letter read: “New York City is a union town and union-busting has no place here. We believe that these organizing efforts will ultimately lead to a stronger and more sustainable future for Starbucks, the workers, and our city and state.”

Although Starbucks has claimed not to be anti-union, just last week the company fired seven Memphis employees who tried for form a union claiming they had violated company policies. A few years earlier, two Philadelphia workers trying to unionize were also fired.

Nestle Teams Up with Starbucks to Boost International Standing

Switzerland-based company Nestle has recently signed a treaty with one of its biggest competitors: Starbucks Corp. Nestle will be paying $7.15 billion in cash for the Starbucks business, which has annual sales of up to $2 billion, and plans to market the chain’s consumer and food-service products internationally. The arrangement does not include Ready-to-Drink drinks or the sales of products within Starbucks coffee shops.

The move comes as part of Nestle’s recent mission to attract higher-end coffee enthusiasts. Mark Schneider, Nestle CEO, said: “With Starbucks, Nescafe and Nespresso, we bring together three iconic brands in the world of coffee.”

Several hundred Starbucks employees will join the Nestle team, and will continue to operate in Seattle, Washington, once the agreement closes by the end of this year.

According to Bloomberg, “Nestle has been bolstering its presence in the U.S., and last year added niche brands Blue Bottle Coffee and Chameleon Cold-Brew to expand its portfolio. Nespresso has introduced a machine that’s more attuned to American’s preference for bigger cups of joe three years ago.”