January 1, Supreme Court Hears Starbucks Case: Company Fights Unionizing Workers’ Reinstatement

The Supreme Court began hearing Starbucks’ case against the federal labor agency on Tuesday. The coffee giant was forced to rehire seven workers who attempted to unionize.

In 2022, Starbucks fired seven baristas who organized a union at their Memphis location. The company claimed the workers violated policy by bringing a TV news crew to the store after hours.

However, the National Labor Relations Board (NLRB) acquired a court order to reinstate the employees. They sided with the workers who argued they were fired due to union activities. An appeals court later upheld this decision.

Starbucks is now arguing that federal courts should apply stricter standards when reinstating fired workers. Currently, a court may grant an injunction against a company if deemed “just and proper.”

Some Supreme Court justices appeared to agree with Starbucks during the first day of arguments.

Justice Neil Gorsuch highlighted that other federal agencies face stricter standards. He questioned, “In all sorts of alphabet soup agencies, we don’t do this. District courts apply the ‘likelihood of success’ test as we normally conceive it. So why is this particular statutory regime different than so many others?”

Despite Starbucks’ troubled history with its union, Starbucks Workers United, tensions have recently subsided.

In February, Starbucks and union representatives announced resumed talks. They planned to meet for a bargaining session on Wednesday, aiming for a contract by the end of 2024.

However, Starbucks is proceeding with its case before the Supreme Court, much to the disappointment of union officials.

Lynne Fox, president of Workers United, the parent union of Starbucks’ union, said, “The day [Starbucks] committed to a new path should’ve been the day that they pulled back the case before SCOTUS.”

Twelve current and former Starbucks baristas also wrote to the Supreme Court. They claimed they had been fired or punished for supporting union activity. Some said they lost their health insurance or had their electricity cut due to unpaid bills.

If the court rules in favor of Starbucks, the decision could discourage union activity at other companies. Union activity has surged nationwide this year.

Amazon, SpaceX, and Trader Joe’s have also recently challenged the National Labor Relations Board.

SpaceX filed a federal lawsuit in Texas earlier this year. The labor board accused the company of illegally firing eight employees for criticizing Elon Musk, the company’s founder.

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