A Vote Among 27 Starbucks Employees to Unionize Could Spell Big Changes for Company
Employees at three Starbucks stores in New York state recently voted on whether or not to unionize. At least one store had enough votes on the side of unionization to move forward, and the uncertainty associated with the news may have caused a dip in Starbucks' stock prices. But what does the news mean for the company and investors long-term?
In the immediate future, it doesn't mean a whole lot for processes, employment, or prices. The move to unionize is not swift and currently is limited to only one or two stores. Even with employees in one store voting 19 to 8 in favor of unionizing, things don't happen automatically. The vote must be certified, and then Starbucks management must enter into talks before a contract can be signed. At this time, it's not definitive that a contract will be signed.
The second of the three stores to vote ended up with a 12 to 8 split against unionizing. The third store currently has a 15 to 9 vote for unionizing, but it also has seven ballots that were not opened and are currently in dispute. It remains to be seen whether that store will end up voting to unionize or not.
Meanwhile, legal analysts and union experts are looking to other Starbucks stores across the country to hold their own votes. Unionizing is not a new topic among baristas and other Starbucks employees in the nation. The company has previously fought such efforts with lawyers and other methods. Reported efforts include bringing in executives to talk to employees about the benefits of the current employment set up.
Starbucks, like many other large corporations, does have a likely business objective in staving off unionization. Unions can increase expenses for businesses and shift the balance of power between management and labor to some degree.
As for stockholders and consumers, it's now a wait-and-see game to see how fast the union bug takes hold and whether other Starbucks locations have their own votes.