NYC Comptroller and other investors urge Starbucks to restart union talks

(Reuters) -New York City's Comptroller and other Starbucks shareholders have written to the company to resume talks with its workers' union to discuss staffing, wages and other issues, the city agency said on its website on Thursday. Union workers represent a small but growing fraction of U.S. Starbucks store staff and the fight over wages and staffing conditions has become a high-profile issue for the company and its new CEO, Brian Niccol, as he works to revive sales. Niccol's plan has included measures such as shutting underperforming stores, including its flagship unionized outlet in Seattle, capping annual hike in North America at a modest 2% and investing to improve customer experience and service times. The investor letter — signed by Comptroller Brad Lander, Trillium Asset Management, the Shareholder Association for Research and Education and Pensions Investment Research Consultants — was addressed to Starbucks' board members Jorgen Vig Knudstorp and Beth Ford and called on the company to reach a contract agreement with Starbucks Workers United. "We are concerned that Starbucks' labor relations have significantly deteriorated, as reflected by over one hundred Unfair Labor Practice complaints filed since the beginning of the year, in-store actions, partner walkouts and protests over store closings, and even strikes," the letter said. The Comptroller published it on its website on Friday. Talks between Starbucks and Starbucks Workers United, which represents more than 12,000 baristas, began in April last year but have since stalled. Starbucks reiterated on Friday that the company and Niccol personally remained ready to return to the bargaining table and that it had reached more than 30 agreements with the union as part of the talks. Both sides blame the other for ending talks late last year and say they are ready to return to discussions. In April, union delegates voted to reject the coffee chain's proposal that guaranteed annual raises of at least 2%, which the Workers United union said did not offer changes to economic benefits such as healthcare or any immediate pay hike. The New York City pension funds said they were the largest Starbucks stockholders within the group, with about 1.33 million shares. There are over 650 unionized Starbucks stores currently in the U.S., according to the SBWU's website, up from about 525 in December last year. (Reporting by Juveria Tabassu, Shubham Kalia and Mrinmay Dey in Bengaluru; Editing by Nivedita Bhattacharjee and Alan Barona)

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