On Tuesday, the U.S. federal appeals court rejected Starbucks' appeal against a verdict that ordered Starbucks to rehire seven employees who were fired for allegedly supporting a union.
Judges from the Sixth Circuit Court of Appeals in Ohio believed that firing those employees last year could have negative consequences that might deter other employees from exercising their legitimate rights under U.S. labor law.
Judge Danny Boggs stated that the reason for the firings was clearly the employees' support for the union, and without reinstating them, Starbucks would be at risk of reprisal.
This decision could motivate the National Labor Relations Board (NLRB) to take stronger legal measures to increase oversight of Starbucks' actions. Meanwhile, the NLRB itself is under scrutiny by shareholders and the U.S. Congress.
Starbucks and the labor board did not immediately respond to requests for comment. Last year, Starbucks stated that it had rehired the seven employees in compliance with the judge’s order but continued to appeal the decision.
The Starbucks store in Memphis is one of the nearly 300 coffee shops that have recently joined the union, an area Starbucks had not ventured into for decades. Moreover, over 600 complaints have been filed with the labor board, accusing Starbucks of illegal labor practices such as firing union supporters, monitoring employees, and closing stores during labor movements.
The Sixth Circuit Court of Appeals is reviewing Starbucks' appeal against a February ruling that prohibited the company from firing or punishing employees at an Ann Arbor, Michigan, coffee shop. Other U.S. appellate courts are considering labor board rulings that found Starbucks' firing of union organizers in Philadelphia and refusal to negotiate with unionized employees in Seattle to be illegal.
Starbucks vehemently denies any misconduct, asserting that it provides competitive wages and benefits to its employees and respects their rights under federal labor law.
