Starbucks Shareholders Launch Campaign to Remove Board Members Amid Union Stalemate
In a significant escalation of the ongoing labor conflict at Starbucks, a coalition of major shareholders is pushing to oust two board members at the company's annual meeting in March 2025. The shareholders argue that board members Jørgen Vig Knudstorp and Beth Ford have contributed to stalling the coffee chain's unionization efforts, which began in 2021 and have yet to yield a single final agreement.
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 cite the board's handling of labor relations as a key failure, with over 680 Starbucks stores voting to unionize since 2021, but only 34 reaching tentative agreements and none finalized.
Tejal Patel, executive director of the SOC Investment Group, stated: "There was a shift in 2025 which raised renewed concerns for us. Labor disputes have continued. Bargaining has not produced a first contract, and risks associated with workforce relations have intensified rather than diminished."
Escalating Labor Disputes and Public Pressure Campaigns
Starbucks workers initiated an unfair labor practice strike in November 2025, which escalated during the holiday season with several thousand participants. Although strike numbers have since tapered, the union has launched public pressure campaigns, including urging customers to delete the Starbucks app until a contract is reached. This move highlights the deepening rift between management and employees.
Brian Niccol, Starbucks's CEO appointed in 2024, pledged to "engage constructively and in good faith" with unions. However, critics argue the company has backtracked on these commitments, leading to increased scrutiny from investors and proxy firms.
Proxy Firms Warn of Financial and Reputational Risks
Two leading proxy firms, Institutional Shareholder Services and Glass Lewis, have cautioned shareholders about potential financial and reputational risks stemming from the labor disputes. Institutional Shareholder Services pointed to a recent $38.9 million settlement by Starbucks over New York City fair workweek laws, the largest in the city's history, as evidence of mismanagement.
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 during a webinar: "You do not simply simplify oversight of a risk that's getting worse. You should be strengthening it."
Worker Demands and Ongoing Struggles
Daisy Pitkin, director of Starbucks Workers United, outlined key union demands, including base wage increases to $17 per hour, annual pay adjustments above inflation, and a minimum of three baristas per store. She noted that Starbucks has made no proposals since April 2025 after workers rejected economic offers.
Jasmine Leli, a barista in Buffalo, New York—where the union campaign began—shared ongoing challenges: "We continue to file unfair labor practices due to ongoing union busting at the store level. We're struggling to pay our bills while working understaffed, which is extremely stressful."
Starbucks's Response and Future Outlook
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. Our ongoing investments in the partner experience have enabled Starbucks to offer the best jobs in retail—pay and benefits average $30 an hour for hourly partners, and turnover is far below the industry average."
Despite this, the shareholder push underscores growing investor impatience with the prolonged labor dispute. As the March 2025 vote approaches, the outcome could signal a pivotal moment for Starbucks's approach to union negotiations and corporate governance.
