Starbucks Shareholders Launch Campaign to Remove Board Members Amid Union Standoff
In a significant escalation of the ongoing labor tensions at Starbucks, a coalition of shareholders is pushing to oust two board members, Jørgen Vig Knudstorp and Beth Ford, ahead of the company's annual meeting on 25 March. The move comes as union negotiations remain deadlocked, with no final agreements reached despite over 680 stores voting to unionize since 2021.
Shareholder Coalition Calls for Vote Against Re-election
The SOC Investment Group, Trillium Asset Management, Merseyside Pension Fund, the Shareholder Association for Research and Education (Share), and the New York state and city comptrollers have jointly written a letter urging shareholders to vote "no" on the re-election of Knudstorp and Ford. They argue that these board members have contributed to stalling the union drive, which has seen only 34 tentative agreements and no finalized contracts.
Tejal Patel, executive director of the SOC Investment Group, highlighted concerns over a shift in 2025, stating, "Labor disputes have continued. Bargaining has not produced a first contract, and risks associated with workforce relations have intensified rather than diminished." The shareholders criticized the board's sudden U-turn on labor relations oversight, calling it inconsistent with the company's turnaround strategy.
Proxy Firms Warn of Financial and Reputational Risks
Two leading proxy firms, Institutional Shareholder Services and Glass Lewis, have issued warnings to Starbucks shareholders. They caution that the company may be neglecting financial and reputational risks from the labor disputes. Institutional Shareholder Services pointed to a recent $38.9 million settlement over New York City fair workweek laws, the largest in the city's history, as evidence of ongoing controversies.
Glass Lewis recommended voting against the board members, citing the dissolution of a Starbucks board committee formed in 2023 to oversee labor relations. Kyle Seeley, deputy director of corporate governance at the New York state common retirement fund, emphasized, "You do not simply simplify oversight of a risk that's getting worse. You should be strengthening it."
Union Demands and Worker Struggles
Daisy Pitkin, director of Starbucks Workers United, revealed that no proposals have been made by Starbucks since April 2025 after workers rejected the company's economic offers. The union is seeking base wage increases to $17 an hour, annual pay hikes that keep pace with inflation, and a minimum of three baristas per store. Pitkin noted that despite Starbucks claiming baristas earn $30 an hour, workers in 34 states start at $15.25 an hour, with nine states at $16 or below.
Jasmine Leli, a barista in Buffalo, New York, where the union campaign began, described ongoing challenges: "We continue to file unfair labor practices due to the ongoing union busting at the store level. We continue to work understaffed, which is extremely stressful. We're struggling to pay our bills." The union has escalated actions, including unfair labor practice strikes in November 2025 and public campaigns urging customers to delete the Starbucks app until a contract is reached.
Starbucks Defends Board and Commitment to Bargaining
In response, Starbucks spokesperson Jaci Anderson defended the board, stating, "The Starbucks Board has the necessary skills and experience to effectively oversee our strategy, including human capital management, which is vital to our ability to drive growth and deliver for our customers." The company highlighted investments in partner experience, claiming pay and benefits average $30 an hour for hourly partners, with turnover below industry averages and over a million applicants annually.
However, critics argue that CEO Brian Niccol's 2024 pledge to engage constructively in union talks has not been upheld, with labor disputes persisting and no progress on final agreements. The shareholder push reflects growing frustration over the board's handling of the union drive, which has become a focal point for broader concerns about corporate governance and worker rights in the retail sector.
