CEO Brian Niccol signals a new era for Starbucks with union cooperation

The new CEO of Starbucks, Brian Niccol, who only came on board weeks ago, says he is open to negotiating with Workers United. The union, which represents more than 10,500 employees, has been pushing for change for nearly three years. 

“I deeply respect the right of partners to choose, through a fair and democratic process, to be represented by a union,” Niccol wrote on Tuesday in a letter addressed to union members and posted on its website. “If our partners choose to be represented, I am committed to making sure we engage constructively and in good faith with the union and the partners it represents.”

The letter comes after Niccol received a letter from union members on Monday, asking the CEO to embrace “the spirit of mutual respect” and pressing that Starbucks should strive to be more “forward thinking” and should be “best-in-class” when it comes to setting the standard for its employees. 

Tensions between Starbucks and the union have been high over the past several years after the brand fired seven employees who were leading unionization efforts in Tennessee. It was determined by the National Labor Relations Board (NLRB) that the firings were illegal, and the company was forced to rehire them. Still, Starbucks didn’t back down, even asking the Supreme Court to step in and protect companies from scrutiny from the NLRB.

The company reopened talks with Workers United earlier this year. However, the new CEO’s appointment drew concerns due to how he handled unionization as CEO of Chipotle. Under Niccol, the brand was accused of violating federal labor law when it refused to grant raises to unionized employees and denied them pay increases given to other employees. 

Another red flag? The new CEO did not choose to relocate to Seattle, the home of Starbucks Headquarters when stepping into the role. Instead, he will frequently (constantly) use the company’s private jet to commute back from Newport Beach, California. Of course, plenty of CEOs partake in weekly private jet commutes. However, as Starbucks has recently ramped up efforts to curb its environmental impact, the costly commute doesn’t suggest he’s one with workers—he’s soaring above them.

Niccol attempted to quell concerns about his entry in his first memo to customers and shareholders, asserting that he wanted to bring back the “golden age” of the company and make Starbucks a more “welcoming coffeehouse” in which to hang out. “There’s a shared sense that we have drifted from our core. We have an opportunity to make the store experience better for our partners and, in turn, for our customers,” he wrote.

Starbucks saw sales lagging earlier this year, but since Niccol was announced, shares have advanced 23%, suggesting that the stock market already has faith in the new CEO. On the other hand, workers are waiting to see if Niccol’s plans pan out or if his memos are just nothing but talk.