Starbucks investors urge company to negotiate

Since the first store organized in 2022, Starbucks workers at unionized locations nationwide have been fighting for a first contract

NEW YORK (October 17, 2025) — Long-time Starbucks investors are joining calls for the company to improve its relationships with frontline workers by restarting negotiations for a first contract with thousands of union baristas across the country. A letter — signed by New York City Comptroller Brad Lander, Pensions Investment Research Consultants (PIRC) on behalf of investor clients, Shareholder Association for Research and Education (SHARE) and Trillium Asset Management — was sent yesterday to the executives in Starbucks’ Investor Relations Department, urging the company to settle a contract.

Chief among the investors’ concerns is a shift in Starbucks’ approach to the union since 2023, when a third-party assessment approved by investors recommended the company engage productively with Starbucks Workers United (SBWU). That kickstarted productive conversations in February of 2024, when the company agreed to a “path forward,” a commitment to bargain a comprehensive framework for collective bargaining agreements. But since late 2024, a new, highly-compensated CEO, Brian Niccol, has taken the reins at the company. The letter notes that labor relations have degraded during his tenure, a concern unionized workers also share.

“We are concerned that Starbucks’ labor relations have significantly deteriorated, as reflected by over one hundred Unfair Labor Practice complaints filed since the beginning of the year, in-store actions, partner walkouts and protests over store closings, and even strikes,” wrote the investors.

Starbucks baristas and supporters picketed outside the company’s corporate headquarters in early October.

SBWU president Lynne Fox penned an op-ed last month laying out the issues that have led workers to file charges with the National Labor Relations Board and engage in work stoppages.

“Workers United members — and particularly the barista bargaining delegates — have approached the path forward in a spirit of collaboration and confidentiality. However, Starbucks has broken with that commitment over the last several months by giving false statements about bargaining to the press, misleading the public on the state of contract negotiations, and resuming union busting in stores,” wrote Fox.

This deterioration of labor relations comes as the company has seen six quarters of sales losses. While CEO Niccol is engaged in a “turn around,” workers note that effort doesn’t include valuing the baristas that are the foundation of the company. In her op-ed, Fox explains how precarious a position Starbucks is in should management continue to stall negotiations.

“Investors should know that if Starbucks continues to stonewall and fight with union baristas, they aren’t afraid to do what it takes to win the fair contract that they’ve earned. This includes going on strike if they must, which has the potential to further damage the brand,” she wrote.

Trillium, SHARE, PIRC and Lander heard that warning loud and clear. Concerned over the company’s future, their letter ends with a call for Starbucks to get serious at the table.

“We are monitoring this issue because we believe that a company’s ability to establish and maintain constructive relationships with workers is a hallmark of a company with a sustainable long-term strategy,” they wrote.

“As such, we are calling on the company to promptly reach a first contract with SBWU.”