Starbucks largely loses appeal over baristas' firing in NLRB case
Published On Dec 27, 2024, 2:11 PM
A federal appeals court has ruled against Starbucks in a National Labor Relations Board (NLRB) case, siding with two Philadelphia baristas who were fired while attempting to unionize. The court found substantial evidence that Starbucks engaged in unfair labor practices. This decision could affect the extent of NLRB's enforcement powers, especially in a time when many Starbucks workers are pushing for unionization across stores. Although Starbucks attempted to challenge the court's decision based on the constitutionality of NLRB judges, it was unsuccessful.
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The ruling reinforces the rights of workers to organize, which may contribute to ongoing unionization efforts at Starbucks locations. This could lead to increased operational costs for Starbucks due to potential wage increases and benefits for unionized employees. Investors might view the ruling as a sign of trouble for the company's labor relations, prompting concerns about future earnings if union organization spreads and impacts operations.
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