Guardian Unlimited: Starbucks reputation on line in court case

[Omaha Steve]

http://www.guardian.co.uk/usa/story/0,,2097633,00.html

Starbucks reputation on line in court case


Coffee giant accused of union-busting in New York

By John Sterlicchi in Florida
Thursday June 7, 2007
Guardian Unlimited

Which Starbucks will step forward in a Manhattan court room next month? Will it be the greener than grass, consistent winner of wonderful-employer accolades on both sides of the Atlantic, or the union-busting, low-wage bully some ex-employees allege?

An industrial relations case against Starbucks has been brought by a US federal agency, the National Labor Relations Board, which has found probable cause that the company violated the rights of its employees, who were trying to organise a union at the company's New York City outlets.



News of the impending court hearing is a threat to Starbucks's reputation as a beacon of social responsibility. Last month with the company's Fair Trade credentials under fire, Starbucks backed down, after the intervention of Oxfam, in an ugly tussle with Ethiopian coffee growers who were trying to be paid more for their highly prized beans.

Nevertheless, Starbucks remains a favourite with mutual funds that invest in socially responsible companies. Ellen Kennedy, an analyst at Calvert, a pioneer in socially responsible investments, said Starbucks is a holding in its Social Index Fund and it remains a labour relations leader in the quick-service restaurant industry, particularly with its exemplary health and safety record and support of gay, lesbian and transgender workers. She said that while she was concerned about the NLRB allegations she feels the company will respond positively as it needs its social responsibility reputation intact as it continues to expand.

The new anti-union allegations mark the second time that Starbucks has been accused of violating the National Labor Relations Act. The first time – also in New York - the charges were settled "amicably" with fired workers re-instated before the case was heard, said David Leach, acting regional director of the NLRB.

The union involved, the small but vocal Industrial Workers of the World, has a list of 30 grievances against the coffee-brewing giant that are consolidated into one NLRB case that will be heard over two or three days next month. The allegations run the gamut from unfair dismissal of union member employees, to preventing wearing of union badges, to stopping pro-union discussions, and selective enforcement of company regulations against body-piercing jewellery. Some of the complaints go back to 2005.

FULL story at link.