Supreme Court Rules Against Starbucks Union in Landmark Case

The Supreme Court has ruled in favor of the Starbucks corporation and against seven fired employees in Tennessee who were labeled “union activists” after they allowed journalists to film their story after hours in a Memphis store.

The Associated Press reports that the Supreme Court made its ruling on Thursday, June 13. The court unanimously dismissed a rule previously used by some courts for orders requested by the National Labor Relations Board, instead adopting a higher standard, advocated by Starbucks, which is typically required in most other disputes involving court orders or injunctions.

For over 75 years, the National Labor Relations Act — the legislation that establishes the agency — has permitted judges to issue temporary injunctions in cases where they deem the requests to be “just and proper,” per the NLRB’s argument. According to the agency, the statute was meant to restrict the role of the courts and does not compel it to prove additional factors.

“Consistent federal standards are important in ensuring that employees know their rights and consistent labor practices are upheld no matter where in the country they work and live,” Starbucks said in a statement following the ruling.

But Lynne Fox, president of Workers United, who represents the union representing the workers, said that the coffee giant should have dropped the suit in order to show good faith toward unionizing workers.

“Working people have so few tools to protect and defend themselves when their employers break the law. That makes today’s ruling by the Supreme Court particularly egregious,” Fox said in a statement.

Last month, Starbucks announced that it would resume union negotiations with its baristas, stating that the workers were campaigning for better overall working conditions, including better pay, benefits, and hours.

Under the leadership of former Starbucks CEO Kevin Johnson, baristas started organizing under the Workers United flag in 2021. Although Workers United does not speak for every employee at a Starbucks location, more people may join if talks are fruitful.

“I think this is a new world right now to be able to say that the CEO has stepped up and said, ‘Look, we’ve got some problems, we know we’ve got some problems, we want to work towards fixing those problems,’” stated Michelle Eisen, a Workers United delegate and founding member of the company’s first organized union in Buffalo.

“Specifically in our U.S. stores, we’re focused on creating a more stable environment for partners through investments in equipment innovation, process improvements, staffing, scheduling and waste reduction, all things our partners value and prioritize creating a more satisfying work environment in our stores while de-risking our business,” said current CEO Laxman Narasimhan in a statement to CNBC.