From Yahoo Finance · · 1m 40s
Starbucks Wins Court Ruling, One Finding Remains
Starbucks wins major court victory but one labor finding still sticks.
In brief
Starbucks wins major court victory but one labor finding still sticks. Starbucks won a federal appeals court ruling that Starbucks did not illegally threaten employees with reprisals for unionizing, but the company still faces a legal risk of cutting maternity benefits for a pregnant employee who unionized. Originally…
Starbucks Wins Court Ruling
A federal appeals court declined to enforce most of a National Labor Relations Board ruling that Starbucks illegally threatened employees with reprisals for unionizing and pretended to surveil organizing efforts.
Court Rejects Union Threat Claims
The 5th U.S. Circuit Court of Appeals rejected claims that a Wichita, Kansas store manager and assistant manager broke federal labor law by telling employees the store had closed its hiring portal and cut hours due to union activity.
Court Finds Maternity Benefit Threat
The court upheld a finding that Starbucks illegally threatened to deny maternity leave benefits to a pregnant employee if workers unionized.
Separate Ruling on Union Activity
A federal appeals court in Manhattan reversed an NLRB finding that Starbucks illegally barred workers at a Meatpacking District store from wearing union-supporting pins or T-shirts.
Starbucks' Financial Turnaround
Fiscal third-quarter global comparable sales rose 7.9%, while adjusted earnings per share of $0.85 beat estimates by roughly 31%.
Profitability Improves
Non-GAAP operating margin expanded 430 basis points to 14.4%, marking a second consecutive quarter of margin growth.
Remaining Labor Challenge
Starbucks still faces a major labor dispute as more than 700 stores have voted to unionize and employees filed hundreds of NLRB complaints.
At a glance
Starbucks won a federal appeals court ruling that Starbucks did not illegally threaten employees with reprisals for unionizing, but the company still faces a legal risk of cutting maternity benefits for a pregnant employee who unionized.
