A National Labor Relations Board judge decided on Wednesday that Starbucks (SBUX) broke many labor rules in its attempts to obstruct a union drive at its shops in the Buffalo, New York, region.
The decision mandates the coffee giant to reinstate seven employees who the judge claimed were wrongfully let go. Also, about two dozen workers who had their hours cut in reprisal for their union support will receive back pay and damages. Also, the judge issued a 10-page notice that CEO Howard Schultz “must read or be present” for. Starbucks claimed that it was considering an appeal.
Starbucks violated federal law in “egregious and widespread” ways during its effort to prevent unionization, a federal administrative judge decided on Wednesday, ordering the business to pay back wages and damages to employees who started nationwide organizing campaigns.
The ruling comes as the coffee giant deals with escalating unionization attempts at its locations countrywide. Judge Michael A. Rosas is an administrative law judge of the National Labor Relations Board. The firm is now the target of progressive lawmakers because of its attempts to squash them.
Judge Rosas further ordered Starbucks to open again a store in the Buffalo, New York, area and to reinstate several employees who the board had determined were terminated due to their union activity.
He further issued an injunction for Starbucks to stop doing several nefarious activities, such as promising workers better benefits if they resisted joining a union, spying on workers by taking pictures of them wearing union lapel pins, and forbidding them from discussing their pay.
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