Starbucks workers have voted to unionize at a store in Buffalo, N.Y., over the company’s objections, pointing the way to a new labour model for the 50-year old coffee giant.
The National Labour Relations Board said Thursday that workers voted 19-8 in favour of a union at one of three locations that voted on unionization.
A second store rejected the union in a vote of 12-8. The results of a third store could not be determined because of several challenged votes.
If the labour board certifies the vote — a process expected to take about a week — it would be the first Starbucks-owned store in the U.S. to unionize. Starbucks has actively fought unionization at its cafés for decades, saying they function best when the company works directly with employees.
Elmwood location makes history
Workers watching the vote count over Zoom on a big screen at a union office in Buffalo erupted into cheers and chants of “Elmwood, Elmwood, Elmwood!” when the results at that location were announced. They jumped up and down and hugged.
Will Westlake, left, and Casey Moore, right, watch as votes are counted during their union election watch party on Thursday in Buffalo. (Joshua Bessex/The Associated Press)
“We still made history,” barista and union organizer Casey Moore told the others watching as it became clear the second store had voted down the union effort.
Workers at all three stores began voting by mail last month on whether they wanted to be represented by Workers United, an affiliate of the Service Employees International Union.
Baristas waging the campaign have said they are organizing in part to have more of a say in the workload created by the company’s mobile app, which has left them struggling to keep up with surges in orders for Frappuccinos and other custom coffee drinks.
The pandemic has created a surge in mobile orders at Starbucks and other restaurant chains. The baristas in Buffalo and elsewhere complain that they cannot limit the number of mobile orders per hour, leading to unexpected surges they struggle to fulfil.
Individual stores can turn off mobile orders completely for their locations temporarily, but that requires a manager’s approval, the company confirmed, and customers can then order from other nearby locations.
Baristas said that adds to those other stores’ burdens, but the company said such shifts do not necessarily lead to overflows in other stores.
100 workers voted out of 220,000 in U.S.
The union vote involved about 100 workers, a tiny fraction of the roughly 220,000 Starbucks employees in the U.S. But a win in Buffalo could catch fire as baristas who have also complained about thin staffing and little control over workplace conditions enjoy more power in a tight labour market.
Since the Buffalo campaign was announced in August, three other nearby locations and one store as far away as Arizona have sought to follow its lead.
“We respect the process that is underway and, independent of any outcome in these elections, we will continue to stay true to our mission and values,” Starbucks CEO Kevin Johnson told employees in a letter on Tuesday.
Employees who spoke with Reuters said they want higher wages, seniority pay and better staffing levels. But burnout from mobile orders and frustration with other tech systems has been an important driver in the campaign, interviews with five workers suggest.
“Technology was made for customers and not for employees,” said Moore.
“Without a union, we haven’t been able to voice how the technology could also work for us.”
A Starbucks spokesman said the company is constantly updating its app based on employee and customer feedback.
Reward memberships increased in pandemic
Moore and other employees interviewed by Reuters said they are not opposed to integrating technology into their work in principle but want more of a say in how it is developed and deployed in stores.
When Starbucks launched seasonal holiday drinks and gave out free tumblers in November, the mobile ordering system was so inundated with orders at one Buffalo area store that staff fell behind by as much as 40 minutes and threw away at least 30 drinks abandoned by customers, said James Skretta, a barista there.
Roughly 100 Starbucks workers, out of a total 220,000 in the U.S., at three Buffalo locations voted on whether or not to form a union. (Colin Butler/CBC)
The Seattle-based chain has about 20 stores in and around Buffalo. It launched its app in 2009 but added new ways to pay and earn points in 2020 as reward memberships soared during the pandemic.
The mobile order app “completely changed what it means to be a barista,” said Danka Dragic, a shift supervisor at one Buffalo area store.
Starbucks baristas are not the only workers who have balked at stores’ high-tech makeovers. Five workers at a Chipotle Mexican Grill Inc. location in Austin, Texas, quit after becoming overwhelmed with mobile orders, according to media reports.
Walmart Inc. in June rolled out an app that it said enables employees to complete various tasks from their phones, but labour advocates warned the technology could open the door to more-stringent productivity quotas.
Union warns of ‘the creep of punitive technology’
A Walmart spokesperson said the app eases aspects of work, including scheduling, clocking in and communication for employees.
“Workers across industries are challenging the creep of punitive technology in the workplace,” Bianca Agustin, corporate accountability director at labour non-profit group United for Respect, said in a statement.
The International Brotherhood of Teamsters has fought to ensure sensors and other technology installed in United Parcel Service trucks are not used to punish drivers, and hospitality union Unite Here has pushed for tech aimed at boosting worker protection, including panic buttons for hotel cleaners.
Starbucks baristas also chafe at a performance management program that rates their customer service — especially because they are under pressure by other technology that tracks how fast they process drive-thru orders.
“It’s as though you are making drinks under the pressure of trying to defuse a ticking time bomb,” Skretta said.
WATCH | As orders increased during the pandemic, so did waste:
Starbucks brings back reusable cups as pandemic waste piles up
4 months ago
Duration 1:54
Starbucks is the first major outlet to allow reusable coffee cups since the start of the COVID-19 pandemic. And while other chains, including McDonald’s and Tim Hortons, still cite health concerns, experts say the risk is minimal and environmental advocates highlight the excess waste from single-use items. 1:54
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
