The Morning: Starbucks and its union

Plus, protests in Kenya, primary elections and "White Chicks" at 20.

View in browser|nytimes.com June 26, 2024 Good morning. Today, we're covering a favorable development for U.S. labor unions — as well as protests in Kenya, primary elections and "White Chicks" at 20. At the Starbucks Workers United headquarters in Buffalo, N.Y. Libby March for The New York Times Coffee and a contract By Noam Scheiber I cover workplace issues and the labor movement. Labor unions have won some big victories in the past few years, including in the auto industry and Hollywood. But if organized labor is going to have a true resurgence in the United States, it can't simply win raises for workers it already represents. It will need to organize new workers and reverse the decades-long decline in union membership. That's why recent events at Starbucks have been so significant. The company and the union — which represents more than 400 of Starbucks's 10,000 U.S. stores — appear on track to reach a contract that will cover wages, benefits and disciplinary policies. This would be a major milestone. Even after workers win a union election, companies often drag their feet when bargaining a contract. If years pass with little or no progress, union supporters may get demoralized and leave, causing the union to unravel. By contrast, a contract could encourage workers to unionize across Starbucks and other food and beverage chains, which are part of an industry that is overwhelmingly nonunion. What's remarkable about the Starbucks development is that it comes after the company spent years resisting the union campaign, which began in Buffalo in 2021. Starbucks's former chief executive, Howard Schultz, portrayed organizers as outside agitators. He warned employees not to be "distracted" by them. But in February the two sides announced that they would soon begin hashing out a framework for a contract. What explains the turnaround? In today's newsletter, I'll explain four key factors. In Seattle, Wash. Grant Hindsley for The New York Times 1. A winning streak. While unions are broadly popular with Americans, they tend to be especially popular among the young and politically progressive, which describes much of Starbucks's work force. This made it difficult for Starbucks to contain the union's growth. The campaign slowed down in mid-2022, when Schultz introduced benefits that did not apply to union stores. But organizers regained momentum as union supporters framed their campaign as a fight for liberal values like L.G.B.T.Q. rights. The union won roughly 100 elections in 2023, which kept the campaign in the news and made it tough for Starbucks to wait it out. 2. A new boss. Schultz, who spent decades at Starbucks before retiring in 2018, returned to the top job in 2022. He focused on fixing operational issues — like outdated equipment and store layouts, which he appeared to believe had fueled the union campaign — and promised to find a successor quickly. That turned out to be Laxman Narasimhan, the C.E.O. of Reckitt, a consumer products company based in England. Though little was known about Narasimhan's feelings on unions at the time, Starbucks corporate officials who worked with him later told me that he took a pragmatic view — believing it could be less costly to engage the union than to fight it. His stance differed from that of Schultz, who viewed the union as a personal affront. It appeared to threaten his self-image as a generous boss. 3. External pressure. Socially minded investors pressed Starbucks to commission a report on its labor practices. It found that the company had fallen short of its commitments on labor rights. A coalition of unions spent heavily to back three labor-friendly candidates for seats on Starbucks's board. And the company became a target of protests and boycotts tied to the war in Gaza, which escalated after Starbucks sued the union over social media posts supportive of Palestinians. In Oakland, Calif. Mike Kai Chen for The New York Times It's hard to know how much these developments weighed on the company, but Starbucks appeared to take them seriously. It announced a new board committee to oversee employee relations shortly before it released the labor report. The company began talks with the union on how to bargain a contract a few weeks before the scheduled vote on the labor-friendly board candidates. And Narasimhan suggested on an earnings call that the protests and boycotts were having "a negative impact" on business even though they were "driven by misperceptions." 4. Government help. U.S. labor law is relatively weak: If a company fires an employee for union organizing, the National Labor Relations Board can seek back pay. But it can't fine the employer. And the process often takes years. Still, the N.L.R.B. tends to be more active and creative under Democratic administrations. It has been especially active and creative and under President Biden. The board issued more than 100 complaints against Starbucks and went to court to reinstate workers it deemed to have been wrongly fired (though the Supreme Court just reined in this practice). The board even said it would begin ordering unions into existence if an employer's labor-law violations affected the outcome of a union election. Though Starbucks consistently denied wrongdoing and appealed findings against it, the board's actions were another source of pressure that raised the cost of fighting the union. A programming note: David Leonhardt is off until next week, and other Times journalists will continue writing the newsletter until then. THE LATEST NEWS Primary Elections Jamaal Bowman Gregg Vigliotti for The New York Times In New York, George Latimer, a centrist challenger, defeated the progressive congressman Jamaal Bowman. Bowman is the first of the "squad" — an influential group of left-wing House members — to lose a seat. Read takeaways. In Colorado, Lauren Boebert won a crowded Republican primary, nearly guaranteeing she will serve another two years in Congress. More on Politics The judge who presided over Donald Trump's Manhattan criminal trial ruled that Trump can now criticize the prosecution witnesses. Oklahoma's Supreme Court blocked state funding for what would have been the nation's first religious charter school. Biden is expected today to pardon around 2,000 veterans convicted of engaging in gay sex, which was outlawed by a military code for more than 60 years. Biden administration officials urged medical experts to remove age minimums for surgeries from their transgender medical care guidelines, emails show. In more than 50 years in Washington, Biden has learned to make deals and work across the aisle. It is an old-school instinct rarely rewarded in today's political climate, Peter Baker writes. Kenya Protesters in Nairobi, Kenya's capital. Brian Inganga/Associated Press Crowds of Kenyans stormed their Parliament building and set fire to its entrance in protest against a bill raising taxes. President William Ruto called the protesters treasonous and deployed the military to quell the demonstration. At least five people were killed, human rights groups said. The tax bill would raise the price of diapers, eggs and phone data, among other things. Officials say it's needed to pay off Kenya's debt. Auma Obama, a Kenyan British activist who is a half sister of Barack Obama, was tear-gassed as she spoke about her opposition to the bill on CNN. See the video. Kenya is among Africa's fastest-growing economies, yet the benefits have not reached many ordinary people. The unrest is a sign of a growing economic crisis across the continent. On the same day, 400 Kenyan police officers arrived in Haiti — which has been plagued by gang violence — to restore order. Israel-Hamas War Waiting to receive food in southern Gaza. Haitham Imad/EPA, via Shutterstock An international group of experts said nearly half a million people in Gaza were at risk of starvation. Hamas said a sister of its political leader, Ismail Haniyeh, was killed in an Israeli strike on their family home. Haniyeh leads the group from exile in Qatar. The U.S. and Israeli defense secretaries met in Washington to discuss the intensifying conflict along Israel's border with Lebanon. Russia The Wall Street Journal reporter Evan Gershkovich went on trial today in Russia on espionage charges. Russia has presented no evidence of his guilt, and the trial is being held in secret. The International Criminal Court issued arrest warrants for two top Russian security officials over strikes against Ukraine's power plants. Other Big Stories The WikiLeaks founder Julian Assange pleaded guilty to violating the U.S. Espionage Act, securing his freedom under a plea deal. He was sentenced to time served in Britain and has returned home to Australia. A new space race: The U.S. and China are competing to build permanent outposts at the moon's most strategic location, the lunar south pole, The Wall Street Journal reports. Opinions What do Biden and Trump need to do to win the presidential debate? The most important thing is to be energetic, say Chris Whipple and Kristen Soltis Anderson. Former Prime Minister Ehud Barak and five other prominent Israelis urge Congress to disinvite Benjamin Netanyahu from its joint session next month. Here are columns by Bret Stephens on Jews and the Ivy League and Thomas Edsall on who gains from voting restrictions. Games for relaxation. Games for concentration. We have them all. For a limited time, save 50% on your first year of a New York Times Games subscription and enjoy new puzzles every day. MORNING READS In London. Andrea DiCenzo for The New York Times Kew Gardens: London's famous botanical garden has deep ties to Japan. This week, the emperor comes to visit. A national obsession: In Jamaica, the popularity of lychee cake tells the history of Chinese immigration. Traveling in style: New York City is in a golden age of weird vehicles. Conversation: A government meteorologist explains what it takes to monitor and predict space weather. Lives Lived: Eric Hazan elevated many of France's most provocative left-wing writers through his publishing house, La Fabrique, but he made his greatest mark as a politically engaged historian of Paris. He died at 87. SPORTS N.B.A.: The New York Knicks acquired Mikal Bridges, a Brooklyn Nets guard who looks like the star they need for a title run. The league's draft starts tonight: See a mock draft. N.F.L.: A month before training camps begin, The Athletic explores the league's underrated and overrated teams. Antonio Pierce: A bankruptcy filing revealed that the Las Vegas Raiders' coach is subject to $28 million in judgments. ARTS AND IDEAS Craig Frazier It's a hard time for wine: Sales are down, climate change threatens smaller producers and many in the industry worry about losing ground to legal marijuana. In a new story, Eric Asimov, The Times's chief wine critic, defends "the beauty and joy of wine," a drink that humans have embraced since the beginning of civilization. More on culture Marlon Wayans and Shawn Wayans in "White Chicks." Joe Lederer/Columbia Pictures The Wayans brothers' subversive comedy "White Chicks" came out in 2004. Twenty years later, the film is still a "culturally, racially and sexually savvy tale," Robert Daniels writes. A wax statue of the Lincoln Memorial melted during the heat wave in Washington and turned into an online meme. THE MORNING RECOMMENDS … Christopher Simpson for The New York Times. Enjoy this cooling gazpacho when it's hot out. Stay safe while traveling with food allergies. Consider these things before buying solar panels. Elevate your coffee at home with a great milk frother. GAMES Here is today's Spelling Bee. Yesterday's pangram was rankling. And here are today's Mini Crossword, Wordle, Sudoku, Connections and Strands. Thanks for spending part of your morning with The Times. See you tomorrow. Sign up here to get this newsletter in your inbox. Reach our team at themorning@nytimes.com. Editor: David Leonhardt Deputy Editor: Adam B. Kushner News Editor: Tom Wright-Piersanti Associate Editor: Lauren Jackson News Staff: Desiree Ibekwe, Sean Kawasaki-Culligan, Brent Lewis, German Lopez, Ian Prasad Philbrick, Ashley Wu News Assistant: Lyna Bentahar Saturday Writer: Melissa Kirsch Need help? Review our newsletter help page or contact us for assistance. You received this email because you signed up for the Morning newsletter from The New York Times, or as part of your New York Times account. 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