Governance | Starbucks board members survive challenge over labor relations approach

The rise of shareholder pressure being brought to bear on workplace issues has backfired somewhat in the case of Starbucks, where a coalition of investors, including several US public pension funds, were pressing shareholders to vote against the re-election of two directors, citing concerns over the company’s approach to labor relations.

The Starbucks board has, however, secured a decisive vote of confidence, even as labor relations and governance remain under scrutiny. Investors this week overwhelmingly ‌re-elected two directors accused by the groups of turning a blind eye to risky ‌labor relations.

The outcome comes at a time when union negotiations remain unresolved and governance structures have shifted, placing greater responsibility on the full board.

Negotiations between the company and its unionized baristas, which represent 6% of US stores, broke down a year ago, but both sides recently announced they are in talks to resume bargaining soon.