NLRB Ruling Goes Against Starbucks Over Raises

Starbucks withheld pay raises and improved benefits from unionized stores, and chief executive Howard Schultz promised more money for stores whose employees "rejected the union as their bargaining representative," labor regulators say in a new complaint against the company. Those actions were illegal, a regional office of the National Labor Relations Board said, the New York Times reports. In an October hearing before an administrative law judge, the board will ask that Starbucks be made to compensate workers for the raises and benefits improvements they lost.

Regional NLRB offices have filed at least 20 unfair labor practices complaints against Starbucks as the union attempts to organize its employees, per the AP. And the company has filed complaints against the union, Workers United. Starbucks is awaiting a decision on its request to have the NLRB stop the union elections, after accusing one of the offices of improperly collaborating with the union. The full NLRB has ruled before that employers can treat union and non-union employees differently, so long as the purpose isn't to undercut unions. (More Starbucks stories.)