Shareholder Push to Remove Starbucks Board Members Amid Union Disputes

Starbucks shareholders are advocating for the removal of board members Jørgen Vig Knudstorp and Beth Ford, citing their roles in hindering the company's unionization efforts. This initiative is spearheaded by the SOC Investment Group, Trillium Asset Management, Merseyside Pension Fund, the Shareholder Association for Research and Education, and the New York state and New York City comptrollers. The shareholders are urging a "no" vote on the re-election of Knudstorp and Ford during Starbucks's annual shareholders meeting scheduled for March 25, 2026.

The Guardian

Since the inception of a barista-led organizing campaign in 2021, over 680 Starbucks locations have voted to form unions. Despite reaching 34 tentative agreements, Starbucks has yet to finalize any contracts. In November 2025, workers initiated an unfair labor practice strike, which peaked during the holiday season, involving several thousand employees. The union has since reduced the number of striking workers and is employing public pressure tactics, including calls for customers to delete the Starbucks app until a contract is established.

The Guardian

Tejal Patel, executive director of the SOC Investment Group, expressed concerns about the board's oversight of labor relations, stating that the situation has worsened since 2025. Jasmine Leli, a barista in Buffalo, highlighted ongoing issues with understaffing and unfair labor practices, emphasizing the stress these conditions create for workers. Daisy Pitkin, director of Starbucks Workers United, criticized the lack of proposals from Starbucks since April 2025, advocating for wage increases and better staffing conditions.

The Guardian

Starbucks maintains that it is committed to bargaining and asserts that the shareholder proposal mirrors a previous unsuccessful attempt. Jaci Anderson, a spokesperson for Starbucks, defended the board's capabilities, stating that they possess the necessary skills to manage human capital effectively. The company claims that average pay and benefits for hourly partners amount to $30 an hour, with turnover rates significantly lower than the industry average.

The Guardian

Shareholders have raised alarms about the board's management of labor relations, arguing that recent changes have not been adequately communicated. Proxy firms, including Institutional Shareholder Services and Glass Lewis, have recommended caution regarding the re-election of Knudstorp and Ford, citing the dissolution of a board committee responsible for overseeing labor relations. Critics argue that neglecting this oversight could exacerbate financial and reputational risks for Starbucks.

The Guardian

While Starbucks claims that baristas earn an average of $30 an hour, union representatives contest this figure, stating that starting wages for baristas are as low as $15.25 in 34 states and $16 or below in nine others. This discrepancy highlights ongoing tensions regarding worker compensation and the company's public statements.

The Guardian

• “You do not simply simplify oversight of a risk that’s getting worse. You should be strengthening it,” — Kyle Seeley, Deputy Director of Corporate Governance, New York State Common Retirement Fund

The Guardian

• “ Jasmine Leli, a Starbucks barista in Buffalo, New York, where the union campaign at Starbucks began in 2021, said: “We continue to file unfair labor practices due to the ongoing union busting at the store level.” — Jasmine Leli, Starbucks Barista

The Guardian

This shareholder initiative reflects broader concerns about labor relations at Starbucks and the effectiveness of its board in addressing ongoing unionization efforts.

The Guardian