The Supreme Court recently ruled in a case stemming from a labor dispute with Starbucks, making it more challenging for the federal government to obtain court orders in situations where a company is suspected of interfering in unionization campaigns. The decision has tightened the standards for when a federal court should issue an order to protect workers' jobs during union organizing efforts.
The court rejected a rule that some courts had previously applied to orders sought by the National Labor Relations Board (NLRB) and instead favored a higher threshold proposed by Starbucks. This new threshold must be met in most other disputes over court orders or injunctions.
The NLRB had argued that the National Labor Relations Act allows courts to grant temporary injunctions if requests are deemed 'just and proper,' without the need to prove additional factors. The agency contended that the law was designed to limit the courts' role in such matters.
The case originated in February 2022 when Starbucks terminated seven workers who were attempting to unionize their Tennessee store. The NLRB obtained a court order requiring the company to rehire the workers while the case proceeded through the agency's administrative processes, which can last up to two years.
After a district court judge and the 6th U.S. Circuit Court of Appeals upheld the ruling for Starbucks to rehire the workers, the case was appealed to the Supreme Court. Currently, five of the seven workers are still employed at the Memphis store, with the other two remaining involved in the unionizing efforts. The Memphis store successfully voted to unionize in June 2022.
Despite initial tensions, relations between Workers United and Starbucks have improved over time. In February, both parties announced plans to resume discussions with the goal of reaching contract agreements this year. They recently held their first bargaining session in nearly a year at the end of April.
According to the NLRB, workers at 437 company-owned U.S. Starbucks stores have voted to unionize since late 2021. However, as of now, none of these stores have finalized a labor agreement with Starbucks.
