6-1 Case Study: Starbucks - Management
Instructions
Read the three articles noted below about an actual union-organizing effort involving Starbucks in New York City:
Judge Says Starbucks Violated Workers Rights at NYC Stores
NLRB Orders Starbucks to Reinstate Two Workers, But Not a Third
Court Sides With Starbucks In Dispute Over Labor Union Pins
After reading all the articles and considering additional research, address the following questions (feel free to use supplemental authoritative resources in your response):
Do you think the administrative law judge and the National Labor Relations Board (NLRB) went too far in overruling Starbucks? Why or why not?
How much leeway should an employer have in setting standards for conduct, customer interaction, and attire in the workplace?
Does the NLRB decision unfairly limit Starbucks in the management of the stores? Why or why not?
What is your view of the courts decision?
For additional details, please refer to the Short Paper and Case Study Rubric document.
OL 318 Short Paper/Case Study Analysis Rubric
Requirements of submission: Short paper assignments must follow these formatting guidelines: 1-2 pages, double spacing, 12-point Times New Roman font,
one-inch margins, and discipline-appropriate citations.
Critical Elements Exemplary (100\%) Proficient (85\%) Needs Improvement (55\%) Not Evident (0\%) Value
Main Elements Includes all of the main
elements and requirements
and cites additional
information to illustrate each
element
Includes all of the main elements
and requirements
Includes some of the main
elements and requirements
Includes few or none of the
main elements and
requirements
25
Inquiry and Analysis Provides in-depth analysis that
demonstrates complete
understanding of all concepts
Provides in-depth analysis that
demonstrates complete
understanding of most concepts
Provides analysis that
demonstrates understanding
of some concepts
Does not provide analysis
and/or shows lack of
understanding of concepts
20
Integration and
Application
All of the course concepts are
correctly applied
Most of the course concepts are
correctly applied
Some of the course concepts
are correctly applied
Does not correctly apply any
of the course concepts
10
Critical Thinking Draws insightful conclusions
that are thoroughly defended
with evidence and examples
Draws informed conclusions that
are justified with evidence
Draws logical conclusions,
but does not defend with
evidence
Does not draw logical
conclusions
20
Research Incorporates many scholarly
resources effectively that
reflect depth and breadth of
research
Incorporates some scholarly
resources effectively that reflect
depth and breadth of research
Incorporates a few scholarly
resources that reflect depth
and breadth of research
Does not incorporate
scholarly resources that
reflect depth and breadth of
research
15
Writing
(Mechanics/Citations)
No errors related to
organization, grammar and
style, and citations
Minor errors related to
organization, grammar and style,
and citations
Some errors related to
organization, grammar and
style, and citations
Major errors related to
organization, grammar and
style, and citations
10
Total 100\%
 OL318ShortPaper/CaseStudyAnalysisRubric
2 Management Report / March 2009
© 2009 Wiley Periodicals, Inc. 
Management Report DOI: 10.1002/mare
A UFCW spokesman said the key to the union victory was not the 
exodus of Hispanics, but bridging the divides between races. 
Certainly, in some other situations—such as among janitors and 
health care workers—unions have been successful among Hispanic work-
ers, even those who are here illegally.
Some say a more important factor was court involvement. The com-
pany and the union agreed on election terms as part of a settlement of 
lawsuits filed against each other.
Ultimately, it may have been the union’s persistence that paid off. 
“They let everyone know that they were in it for the long haul,” an 
organizer from a farmworkers’ union observed. “When you give the 
people hope, and that hope is not going to go away, people tend to side 
with you.” n
Judge Says Starbucks Violated Workers’ 
Rights at NYC Stores
A New York City Industrial Workers of the World local—which also 
is known as the “Starbucks Workers Union”—may be making some head-
way in its ongoing campaign to organize Starbucks workers at four New 
York City stores. An administrative law judge (ALJ) has ruled that the 
company unlawfully restricted workers’ union activity and fired three 
workers due to their support for the union. 
Starbucks kept workers from wearing union buttons, using bulletin 
boards and talking about unions and working conditions, the ALJ said. 
Thus, the company interfered with, restrained, and coerced employees in 
the exercise of rights guaranteed by the National Labor Relations Act, 
the judge said.
The ALJ also said the evidence showed Starbucks fired three employ-
ees due to their union activity. She recommended that the NLRB order 
the company to reinstate the workers with back pay.
Union Insignia
In March 2006, the company settled prior unfair labor practices 
(ULPs) filed by the union and entered into an agreement that recognized 
the right of its employees to wear “reasonably-sized-and-placed buttons or 
pins that identify a particular labor organization or [an employee’s] sup-
port for that organization.”
Based on its interpretation of the settlement, the company told em-
ployees they could wear only one pin. 
The ALJ said her review of the evidence showed that employees 
wore numerous pins on their uniforms, hats, or aprons while work-
ing. The judge said the company failed to prove there were special 
circumstances showing that wearing of more than one insignia may 
jeopardize safety, damage machinery or products, exacerbate em-
ployee dissension, or unreasonably interfere with the employer’s public 
image. Absent such evidence, the limit of one union-related pin was 
unlawful.
Editor-in-Chief
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(Continued on page 8)
8 Management Report / March 2009
© 2009 Wiley Periodicals, Inc. 
Management Report DOI: 10.1002/mare
Bulletin Boards
At Starbucks’ Union Square East store, there was 
a back room that contained two bulletin boards. One 
bulletin board was reserved for company use, but there 
was a dispute about the use of the second bulletin 
board. The company said it had a long-standing policy 
that employees could not post personal notices on the 
second bulletin board. The judge said the evidence 
showed that the timing of Starbucks’ announcement 
of this policy was “directly in response to open union 
activity” and that the company’s stated policies on 
bulletin board use had either been “unenforced or ap-
plied in a very liberal manner by store management.” 
Therefore, the alleged policy was unlawfully applied 
to discriminate against union supporters and union-
related notices.
Talking About the Union
Store managers had told employees they could not 
discuss the union while they were working, based on 
the company’s rule against solicitation during work 
time. The judge said the evidence showed that Star-
bucks permitted social conversations on a variety of 
topics during work time. The Board has held there is 
a difference between soliciting an employee’s support 
for the union and holding a brief conversation about 
union-related matters, the judge noted. Starbucks’ 
use of its no-solicitation rule to prohibit union talk 
during work time was unlawful, because it singled 
out union talk while allowing social conversation on 
other topics.
The ALJ also concluded that supervisors unlaw-
fully prohibited employees from discussing work-
ing conditions, limited employees’ off-duty access to 
stores, and prevented some employees from working 
additional shifts at other locations. In addition, she 
found that three employees had been unlawfully fired 
because of their activity or comments in support of the 
union (Starbucks Corp., NLRB ALJ, No. 2-CA-37548, 
12/19/08). n
(Continued from page 2)
union to represent you. It doesn’t even mention an 
election.
IF I SIGN ONE OF THESE CARDS, CAN I GET IT 
BACK?
The union never gives the cards back. You can 
write to them asking for the card, but I’ll bet you they 
will never return it to you. n
What You Can Say About a 
Union
This is the fourth article in a series that began 
with discussion of the acronym PITS. “PITS” is an easy 
way for supervisors and managers to remember the 
kinds of actions that will cause an unfair labor practice 
finding from the National Labor Relations Board. The 
forbidden actions are promises, interrogation, threats, 
and surveillance.
With so much to remember about what you can’t 
do or say, it’s important to note there is a great deal 
you can say. You can give your opinion without threat-
ening. You can make statements, and you can show 
employees facts, all without asking questions or mak-
ing threats or promises. 
Here are examples of permitted statements:
 You MAY tell employees that the vast majority of 
workers do not belong to labor unions. You may 
communicate the facts that (1) less than 7 percent 
of the private workforce in our country belongs to 
unions and (2) the trend in union membership has 
been downward for many years.
 You MAY tell employees of your bad experiences 
with unions in general, or the unhappy experi-
ences of your friends and relatives.
 You MAY tell employees what you know about 
the union and about restrictive provisions in the 
union’s constitution such as fines, assessments, 
dues increases, union “trials,” and similar rules 
that give the union power over their work lives. 
Our campaign manager will provide you with the 
information you need. Be sure your statements are 
truthful.
 You MAY tell employees about restrictive language 
in union contracts at other facilities that would 
make them worse off than under present policies. 
 You MAY tell employees why you believe they will 
be better off without the union. 
 You MAY tell employees who express resistance 
to signing a card for the union that they have the 
right to speak out against it and to tell coemploy-
ees about the company’s good points and why a 
union is not needed. (But don’t directly ask or di-
rect a worker to campaign against the union; just 
tell them they have the right to do so). n
4 Management Report / January 2010
© 2010 Wiley Periodicals, Inc. 
Management Report DOI: 10.1002/mare
to restrain, coerce, or interfere with rights guaranteed 
employees by the Act. 
Meaning for Management
As can be seen from this case, Board decisions on 
whether the employer committed an unfair labor prac-
tice can turn on subtle definitions, such that many 
remarks supervisors or managers might naturally 
make may be unlawful. It is virtually impossible for 
untrained supervisors to avoid committing unwitting 
violations of the Act. 
Considering the hefty fines for unfair labor prac-
tices that are anticipated with the eventual passage of 
some version of the Employee Free Choice Act, super-
visory training before organizing activity commences 
is an imperative. n
Making the Case That EFCA Is 
Remedy for Hard Times
You might think that today’s economic hard times 
are not a good climate to make the radical changes in 
labor law that would occur if any version of the pro-
posed Employee Free Choice Act were enacted. 
That is not how the measure’s most ardent sup-
porters see it. Blogging for the Drum Major Institute 
for Public Policy, a progressive think tank, Amy Traub 
argues that current conditions make it clearer than 
ever why the EFCA is needed. Hers are arguments we 
are likely to hear from other supporters when the U.S. 
Congress gets back to consideration of the measure.
Traub observes that businesses are finding that 
one place they squeeze out a little extra profit in these 
difficult economic times is by reducing labor costs. In 
some cases, wages have been cut or planned increases 
withheld. Many workers are also being saddled with 
increases in their contributions for health insurance, 
as employers switch to high-deductible or other plans 
that require higher employee payments. 
Another method of belt tightening at the expense 
of workers that is being widely employed, Traub says, 
is to reduce the payroll by reducing staff, and then 
demanding that the remaining workers work harder 
and for longer hours, which they will do to avoid losing 
their own jobs and having to look for another in this 
dismal job market.
All this means working people are bearing the brunt 
of the economic downturn, Traub argues. The remedy, 
she claims, is “to give workers more power in the work-
place, enough to push back and stop making America’s 
working families the single easiest target for every 
negative economic development. The Employee Free 
Choice Act was a good idea before the recession, when 
middle-class Americans weren’t sharing the benefits of 
economic good times, but it’s absolutely essential now 
that working people are bearing the disproportionate 
brunt of the economic hard times,” Traub says.
One important fact unmentioned in this pro-EFCA 
spin is that unions have been unable to protect their 
members from layoffs and terminations during this 
recession. n
NLRB Orders Starbucks  
to Reinstate Two Workers,  
But Not a Third
The NLRB has ordered Starbucks to reinstate 
with back pay two former employees who were fired 
for supporting a union. In a partial victory for the 
company, the Board declined to order reinstatement 
for a third worker whose behavior was not protected 
(Starbucks Corp. d/b/a Starbucks Coffee Co., 352 
NLRB No. 99 (2009)).
In March 2006, Starbucks had settled various 
charges filed by the union and entered into an agree-
ment approved by an NLRB regional director that 
recognized the right of employees to wear “reasonably-
sized-and-placed buttons or pins that identify a par-
ticular labor organization or a partner’s support for 
that organization.” 
Starbucks officials interpreted the settlement to 
limit employees to wearing a single union button and 
told employees they could wear only one pin. The 
Board, however, agreed with the administrative law 
judge (ALJ) that the company could not convincingly 
support its assertion that there was a compelling busi-
ness reason to restrict employees to one prounion pin. 
The Board adopted the ALJ’s findings that Star-
bucks discriminated against certain employees by pro-
hibiting them from using a company bulletin board and 
from talking about unions and working conditions, by 
Protected ConductEFCA Watch
 © 2010 Wiley Periodicals, Inc.
Management Report / January 2010 5
Management Report DOI: 10.1002/mare
disparately enforcing its dress code, and by preventing 
certain employees from working shifts at other Star-
bucks locations. 
The company had offered business justifications for 
several of its actions, but the judge found the arguments 
were undermined by evidence that rules were used to 
limit union-related conduct and were not consistently 
enforced against other forms of employee activity.
Deliberate Intimidation Not Protected
In a partial victory for the company, the Board 
reversed the ALJ’s finding that Starbucks’ discharge 
of employee Iris Saenz was a violation. After a union 
meeting, Saenz pursued a Starbucks regional vice 
president for nearly two city blocks shouting threats, 
taunts, and profane comments at him. Starbucks dis-
charged Saenz for her conduct “due to the fact that 
she was not following our guiding principle of treating 
people with respect and dignity.”
The Board considered whether the NLRA protected 
Saenz’s conduct because she had been at a union rally 
prior to the event. “Employees are permitted some lee-
way for impulsive behavior when engaged in concerted 
activity,” the Board said, but added that “this leeway is 
balanced against an employer’s right to maintain order 
and respect.”
The Board applies four factors to analyze conduct 
that occurs in connection with otherwise protected ac-
tivity: the place of the discussion, the subject matter, 
the nature of the employee’s outburst, and whether the 
outburst was provoked by an employer’s unfair labor 
practice. The Board found that when Saenz engaged in 
deliberate intimidation, she lost the act’s protection. Of 
the four factors, the Board said only the subject matter 
weighs in favor of protection of Saenz under the act. n
Sample Letter  
After Card Signing
Dear Employee,
A BIG MISTAKE HAS BEEN MADE.
I have been informed that employees have signed 
cards saying they wanted a union here.
First, I want you to know that I do not care whether 
or not you signed a card. There will be no consequences 
to you if you did or did not sign the card.
However, I am concerned with making sure you 
understand what a BIG MISTAKE this is. I want to 
outline below some information that perhaps you’re not 
aware of regarding unions and the false pretense under 
which many of you may have signed these cards.
I believe you are being taken advantage of. Have 
you looked into unions in general, and in particular 
this union??? Unions survive by adding members who 
pay dues, who pay their salaries. The union trying to 
get the right to charge you dues, Local 210, has lost 
MORE THAN HALF OF ITS MEMBERS IN THE 
PAST FEW YEARS ALONE! Why would members 
leave the union unless the union was NOT delivering 
on promises they offered? ALSO—if the union gets in, 
your paycheck will be drastically REDUCED! You will 
each spend hundreds and hundreds of dollars each 
year on union dues—so you can pay the people that 
run this union hundreds of thousands of dollars a year 
taken from hard-working people like you.
THEY NEED YOU TO CONTINUE TO SUPPORT 
THEIR SALARIES. WHOSE BEST INTEREST DO 
YOU REALLY THINK THEY HAVE IN MIND—
THEIRS OR YOURS?
I have been told that many of you were tricked 
into signing these union cards. You either did not 
know what you were signing or you signed under the 
false pretense that your supervisors Joe and Miguel 
signed the cards. They did not sign—and do not want 
to unionize. Some of your co-employees here have had 
bad experiences in unions before and absolutely DO 
NOT want to unionize, because all a union does is take 
money out of your own pocket.
Understand that the union did not create your 
job. We did. The union did not hire you. We did. The 
union did not provide you with the highest yearly pay 
you have ever earned. We did. The union did not give 
you job security. We did. The union did not make our 
product. We did.
You should know that this is the WORST time to 
even think about unions: unemployment is the highest 
it has been in our country for a long time, many compa-
nies are going out of business or laying off employees, 
we have not made a profit in months, and my partners 
and I have stopped taking a paycheck from the com-
pany so that we can keep the company going. Even 
with the bad times we have experienced, our company, 
YOUR company, made many improvements.
We gave you raises, health insurance, and dental; 
added air conditioning; started Pizza Fridays, built a 
more comfortable workplace; and have attempted to 
save our company and give you job security. We have 
Campaign Workshop
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