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A US labour union group has ended its board fight with Starbucks ahead of the coffee company’s annual shareholder meeting next week.
The Strategic Organizing Center, a coalition of labour unions that nominated three people for Starbucks’ board, on Tuesday said the company and organiser Workers United had agreed to work together to reach collective bargaining agreements for represented stores and employees.
“We believe that by and large shareholders are optimistic the company has committed to these changes in good faith and intends to begin to repair its relationship with its workers,” SOC said in a statement.
“We feel that now is the time to acknowledge the progress that has been made and to allow the company and its workers to focus on moving forward,” it added. “As such, we are withdrawing our director nominations.”
Starbucks said on Tuesday that it appreciated the decision announced by SOC. The company said in late February that it would begin discussions on collective bargaining agreements, “including a fair process for organising, and the resolution of some outstanding litigation”.
Last week, the influential proxy advisory firm Institutional Shareholder Services, sided with Starbucks in recommending investors vote against SOC’s board nominees.
Starbucks’ shares are down 12 per cent over the past 12 months.
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