Federal labor board allegations that Starbucks Corp. illegally gave pay raises and benefits to nonunion workers and denied them to union workers illustrate the legal minefield employers must navigate when they have these types of mixed workforces.
The National Labor Relations Act generally prohibits employers from changing union workers’ job terms and conditions without bargaining, with some exceptions.
At the same time, the National Labor Relations Board can consider it unlawful discrimination if a company fails to provide union workers the benefits and wage bumps given to nonunion workers.
“This is the classic Hobson’s choice,” said Steven Suflas, a management-side attorney with Ballard Spahr LLP. “If you give the benefit, it’s a unilateral change. If you don’t, it’s anti-union discrimination. It’s a lose-lose bet.”
The NLRB’s Seattle office recently hit Starbucks with a complaint accusing the coffee chain of suppressing organizing activity by withholding pay hikes and new benefits from workers at unionized and unionizing stores. The company increased wages and granted benefits at nonunion stores.
The allegations are part of the 24th complaint that NLRB prosecutors have issued against Starbucks since Starbucks Workers United, an affiliate of the Service Employees International Union, began winning elections at the coffee chain’s stores in December. The union has...
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