Comptroller Lander and Coalition of Investors File Shareholder Proposal at Starbucks on the Rights of Workers to Organize

New York, NY – Today, New York City Comptroller Brad Lander announced that the New York City Pension Funds have filed a shareholder proposal that calls for an independent, third-party assessment of Starbucks’ (SBUX) adherence to workers’ freedom of association and collective bargaining rights. The proposal was filed along with PIRC on behalf of pension fund clients, SHARE on behalf of The Catherine Donnelly Foundation, and Trillium ESG Global Equity Fund. 

The New York City Retirement Systems own 1.78 million shares in the company, valued at $155.06 million as of June 30, 2022. The investor coalition collectively owns more than $163 million in shares. This action follows a similar initiative by investors at Apple, as workers at both companies are organizing across the country.

Starbucks’ stated mission is to “inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” Despite this goal, there is growing concern that the company is interfering with its employees’ freedom of association, which it claims to respect. Reports of retaliatory firings of workers leading unionization efforts have made national headlines multiple times in the last several months. In August, Starbucks was ordered by a judge to reinstate several employees in Memphis, TN who were reportedly fired for supporting organizing efforts.

The surge in reports of retaliation and interference with worker organizing are a serious human capital management concern for long-term shareholders. Starbucks’ workers are the faces of the company to customers. As Starbucks’ employees across the nation continue to lead unionization efforts, the company’s leadership must cease activities that may be viewed as union-busting. Workers at hundreds of stores have voted to unionize, yet Starbucks leadership has spoken publicly against unionization efforts, and regional offices of the NLRB have issued at least 20 complaints against Starbucks.

The shareholder proposal calls on the board of Starbucks to oversee an independent evaluation of the company’s adherence to its “stated commitment to workers’ freedom of association and collective bargaining rights as contained in the International Labour Organization’s (ILO) Core Labor Standards and as explicitly referenced in the company’s Global Human Rights Statement.”

To read the proposal in full, click here.

“When companies blatantly disregard and oppose their employees’ fundamental right to organize, they put their reputation on the line. For a company as focused on the customer experience as Starbucks, continued interference with worker organizing undermines the brand, which is essential to its success. Workers have boldly stood up to company leadership and fought for real representation over the course of just two years, yet rather than treat them as partners — as the company calls its employees — Starbucks has taken actions inconsistent with its own stated values. A new standard is emerging across the U.S: any company that wants to be considered a responsible employer must genuinely remain neutral when workers organize,” said Comptroller Brad Lander.

“We were not impressed by management’s language at last week’s investor day on worker rights. Clearly, they need to re-commit to respecting worker rights to organize and collectively bargain which it made years ago in Starbucks’ Global Human Rights Statement. Given the hundreds of allegations of unfair labor practices, we continue to be deeply concerned about the negative impacts on Starbucks’s workers and the company’s reputation as a socially progressive company,” said Trillium Asset Management, LLC’s Chief Advocacy Officer Jonas D. Kron. “As recently covered by a Trillium whitepaper, there is strong evidence that respecting worker rights is good for investors, employers, and workers. But, beyond that, genuinely respecting labor rights is the right thing for Starbucks to do.”

“Corporations should refrain from interfering with employees’ right to organize and instead promote an environment in which the collective voices of workers are heard and respected,” said Department of Finance Commissioner Preston Niblack, Chair of the New York City Employees’ Retirement System Board. “I join my fellow trustees in urging Starbucks to listen to its workers as well as investor concerns and embrace its stated commitment to upholding collective bargaining rights for its employees.”

“Employers like Starbucks have a responsibility to uphold the rights of workers to organize, and we as shareholders have a responsibility to ensure companies are held accountable when those labor practices are called into question. What we’re doing here is reaffirming and defending New Yorkers’ ability to freely access and use the resources they need to improve the workplace and conditions of employment. I applaud New York City Comptroller Brad Lander for driving this effort on behalf of Starbucks employees and workers across our city,” said Brooklyn Borough President Antonio Reynoso.

In addition to Comptroller Lander, the trustees of the aforementioned systems are as follows:

New York City Employees’ Retirement System (NYCERS): Mayor Eric Adams’ Representative Preston Niblack, Department of Finance Commissioner (Chair); New York City Public Advocate Jumaane Williams; Borough Presidents: Mark Levine (Manhattan), Donovan Richards (Queens), Antonio Reynoso (Brooklyn), Vito Fossella (Staten Island), and Vanessa L. Gibson (Bronx); Henry Garrido, Executive Director, District Council 37, AFSCME; Tony Utano, President Transport Workers Union Local 100; and Gregory Floyd, President, International Brotherhood of Teamsters, Local 237.

Teachers’ Retirement System (TRS): Mayor Eric Adams’ Appointee Bryan Berge, Director, Mayor’s Office of Pension and Investments; Chancellor’s Representative, Benjamin Schanback, New York City Department of Education; and Debra Penny (Chair), Thomas Brown and David Kazansky, all of the United Federation of Teachers.

New York City Fire Pension Fund (Fire): Mayor Eric Adams’ Representative Bryan Berge, Director, Mayor’s Office of Pension and Investments; Acting New York City Fire Commissioner Laura Kavanagh (Chair); New York City Finance Commissioner Preston Niblack; Andrew Ansbro, President, Robert Eustace, Vice President, Edward Brown, Treasurer, and Eric Bischoff, Staten Island Representative and Chair, Uniformed Firefighters Association of Greater New York; Liam Guilfoyle, Captains’ Rep.; Paul Mannix, Chiefs’ Rep., and Christopher Jensen, Lieutenants’ Rep., Uniformed Fire Officers Association; and Peter Devita, Marine Engineers Association.

New York City Police Pension Fund (PPF): Mayor Eric Adams’ Representative Bryan Berge, Director, Mayor’s Office of Pension and Investments; New York City Finance Commissioner Preston Niblack; New York City Police Commissioner Keechant Sewell (Chair); Chris Monahan, Captains Endowment Association; Louis Turco, Lieutenants Benevolent Association; Vincent Vallelong, Sergeants Benevolent Association; Paul DiGiacomo, Detectives Endowment Association; and Patrick Lynch, John Puglissi, Joseph Alejandro, and Thomas Gilmore, all of the NYC Police Benevolent Association.

Board of Education Retirement System (BERS): Board of Education Retirement System (BERS): Schools Chancellor David C. Banks, Represented by Ben Schanback; New York City Comptroller Brad Lander’s Representative Alison Hirsh; Mayoral: Vasthi Acosta, Marjorie Dienstag, Gregory Faulkner, Dr. Angela Green, Kyle Kimball, Anthony Lopez, Alan Ong, Gladys Ward, Karina Taveras; Thomas Sheppard (CEC); Geneal Chacon (Bronx); Tazin Azad (Brooklyn); Kaliris Salas-Ramirez (Manhattan); Sheree Gibson (Queens); Aaron Bogad (Staten Island); and employee members John Maderich of the IUOE Local 891 and Donald Nesbit of District Council 37, Local 372.

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