Shareholder groups press Starbucks to restore labor committee, cite lack of union contract
SBUX•Shareholder groups are urging Starbucks to reinstate a board committee overseeing labor relations, citing the lack of a union contract nearly five years after the first Starbucks store organized. The proposal’s filers collectively hold nearly $270 million in Starbucks shares.
1. Investors seek committee return
A proposal filed by New York City Comptroller Brad Lander, following identical filings by the New York state comptroller and Trillium Asset Management, asks Starbucks’ board to reinstate a committee that oversaw labor relations. The investors describe labor relations as a significant, persistent risk and cite the absence of an agreement with the union representing U.S. baristas nearly five years after the first store organized in Buffalo, New York. The union represents about 5% of U.S. stores, based on recent estimates.
2. Starbucks defends oversight
Starbucks said it was confident its board had the skills and experience to oversee the company’s strategy. The company created a committee to oversee labor relations and other social issues in 2023, then dissolved it in November 2025; Starbucks said the responsibilities were redistributed because oversight would be stronger and more integrated. Starbucks Workers United backed the shareholder proposal, saying unsettled labor issues may be negatively affecting CEO Brian Niccol’s turnaround plan.
