Starbucks is under fire from shareholder proxy firms warning that its board may be neglecting escalating labor dispute risks, potentially harming shareholder value amid ongoing union battles.
Proxy Advisors Flag Oversight Failures
Glass Lewis and ISS recommended voting against board chair and lead independent director at the March 13, 2026, annual meeting, citing weak labor relations oversight since CEO Brian Niccol’s September 2025 appointment. Activists argue the board reversed prior commitments, ignoring 125+ unfair labor practice charges filed since January.
Ongoing Strikes and Legal Battles
Workers United’s “Red Cup Rebellion” strike, now spanning 17+ stores after November 2025 launch, demands better pay ($15.25/hr average), staffing, and contract resolution after stalled talks. Starbucks faces record NLRB violations since 2021, including retaliation claims, while operating 16,900+ US locations.
Financial and Reputational Stakes
Global protests in 10 countries support US baristas, with analysts noting risks to recovery amid $35M+ settlements like NYC’s Fair Workweek penalties. Union penetration remains low at 5% of stores despite 666 unionized locations.
