Strategic Organizing Center Submits Letter to SEC Calling on Starbucks to Properly Disclose True Cost of Anti-Union Campaign
Based on the SOC’s analysis,
Believes
Encourages shareholders to support the SOC’s three independent candidates for the
As the letter states:
Since before the Proxy Contest began,
The SOC’s analysis includes the estimated total of litigation costs and expenses, other categories of expenditures (including employee lost time, communications and internal
Based on the SOC’s analysis, Starbucks’ anti-union campaign includes the following estimated costs and liabilities through
Estimated Costs Based on Company Anti-Union Activity through |
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Legal Fees: Litigation (State and Federal Court, |
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Consultants and Internal Support: Communications, Research, Training |
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Store Employee Productivity Lost Time: |
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Estimated Liabilities Based on |
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Illegally Denied Wages and Tips (Note: This grows at a rate of |
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Illegal Firings and Store Closings |
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Total Estimated Expenditures and Liabilities |
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The letter also describes why the SOC believes that Starbucks’ proxy materials and other filings fail to provide an accurate portrayal to shareholders:
Indeed, the Company spills a fair amount of ink (in its proxy statement) on its “Reinvention Plan” and business strategy to paint a rosy—yet misleading—picture of its purported attention to its partners that acknowledges their importance while obfuscating Starbucks’ true approach to human capital management that informs the Proxy Contest. 3 In doing so, the Company tactically and conveniently cherry picks what it thinks the broader investing public should know about its business and about the Proxy Contest.
In the letter, the SOC requests that the
The SOC believes Starbucks’ lack of disclosure and the exorbitant cost to shareholders represent just the latest examples of the current Board’s lack of oversight, counterproductive approach to labor issues and flawed allocation of resources. For these reasons – and to protect shareholder value – the SOC has nominated three director candidates (the “SOC Nominees”), who are ideally suited to help repair the relationship with the Company’s workers and regulators while safeguarding the best interests of all Starbucks’ stakeholders.
The SOC Nominees are:
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Maria Echaveste , a former seniorWhite House official, seniorDepartment of Labor appointee and corporate attorney with significant international relations and public company board experience. -
Hon.
Joshua Gotbaum , who has been a director of both public and private companies with decades of experience in corporate governance and change, as well as significant public policy and government experience. -
Hon.
Wilma Liebman , who possesses over 40 years of experience in labor management, employee relations, wage negotiations, public policy and law – including having served as the Chair of theNLRB under PresidentBarack Obama .
For the nominees’ full biographies, see here.
Shareholders can be part of ensuring
For more information, shareholders can visit: www.BrewABetterStarbucks.com.
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DISCLAIMER
This material does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in any state to any person. In addition, the discussions and opinions in this press release and the material contained herein are for general information only, and are not intended to provide investment advice. All statements contained in this press release that are not clearly historical in nature or that necessarily depend on future events are “forward-looking statements,” which are not guarantees of future performance or results, and the words “will,” “anticipate,” “believe,” “expect,” “potential,” “could,” “opportunity,” “estimate,” and similar expressions are generally intended to identify forward-looking statements. Any projected results and/or statements contained in this press release that are not historical facts are based on current expectations, speak only as of the date of this press release and involve risks that may cause the actual results to be materially different. Certain information included in this press release is based on data obtained from sources considered to be reliable. No representation is made with respect to the accuracy or completeness of such data, and any analyses provided to assist the recipient of this press release in evaluating the matters described herein may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any analyses should also not be viewed as factual and also should not be relied upon as an accurate prediction of future results. Any figures are unaudited estimates and subject to revision without notice. The SOC disclaims any obligation to update the information herein and reserve the right to change any of their opinions expressed herein at any time as they deem appropriate. Past performance is not indicative of future results.
IMPORTANT INFORMATION
The SOC, the SEIU,
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1 Litigation costs were estimated based on the different types and number of
2 Liabilities were calculated for cases in which the
Wage liability calculations include hourly pay, tips, accrued interest and FICA payments. Wage liabilities were calculated through
Estimated liabilities for store closings includes: (1) estimated wage liabilities, (2) estimated shutdown costs, (3) estimated net lost revenue and (4) estimated reopening costs.
3 The Proxy Statement explains, at page 11, that one key aspect of the Company’s latest reinvention plan is to “reinvigorate partner culture,” and at page 1, that “various initiatives to improve the partner experience” are “core” to the reinvention plan. See also 2024 Proxy Statement at page 10 (“Our partners are—and always have been—core to
View source version on businesswire.com: https://www.businesswire.com/news/home/20240216270911/en/
Investor Contact
info@okapipartners.com
Media Contacts
soc-sbux@longacresquare.com
Source: The Strategic Organizing Center