Starbucks Investors Vote For Worker-Rights Assessment: Report

  • Starbucks Corp SBUX investors urge an outsider assessment of how it treats its labor force.
  • The nonbinding proposal was approved in the light of a unionization wave across its cafes in the U.S., reported Bloomberg.
  • In the vote, more than half of the investors wanted a worker rights assessment.
  • The report noted this might set an example for other corporate giants that face similar stockholder resolutions, including Walmart Inc WMTAmazon.Com, Inc. AMZN, and CVS Health Corp CVS.
  • The company is also facing accusations from the U.S. National Labor Relations Board prosecutors that its antiunion practices have flouted the law.
  • Companies are increasingly being nudged to stay accountable for just employee treatment, especially lower-paid employees.
  • In Starbucks, about 300 of the U.S. locations have voted to unionize, asking for better working conditions. 
  • The assessment will be one of the first challenges for the new CEO, Laxman Narasimhan, who succeeded Howard Schultz recently.
  • Price Action: SBUX shares closed higher by 1.92% at $100.62 on Wednesday.
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