Starbucks Corporation SBUX was reportedly sued by eight unionized employees of a South Carolina store that complained that the coffee chain was making false accusations against them.
What happened: The coffee chain’s employees filed the lawsuit in a South Carolina state court against Starbucks and the store manager in Anderson, Southern California. reported Reuters.
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What happened: Workers reportedly complained that the manager had asked police to charge them with assault and kidnapping after demanding a pay rise in August.
Starbucks said it was reviewing the lawsuit, and a company spokesman said that “no Starbucks affiliate has been or will be disciplined for supporting or engaging in legitimate union activities,” Reuters reported.
“Interest in a union does not exempt partners from following policies and procedures that apply to all partners.”
Why it matters: According to Reuters, store employees voted 18-0 to unionize.
That National Industrial Relations Committee said in August that Starbucks had illegally withheld Wages and benefits of union employees.
The new CEO of Starbucks, Laxman Narasimhanwho succeeded Howard Schultzfights with a Wave of union organizing since the beginning of August, 209 shops have voted to form unions.
Price promotion: On Monday, Starbucks shares closed 2.9% higher at $88.90, up 0.8% in after-hours trading Data from Benzinga Pro.
Continue reading: Union claims Starbucks closed two locations in retaliation: Reuters
