The Recent Starbucks Decision

The National Labor Relations Board issued yet another Starbucks decision this past week. Again, the Board upheld an administrative law judge’s opinion that Starbucks violated the National Labor Relations Act during a union’s organizing campaign at a New York retail location. This new Starbucks decision is an excellent reminder about what the Board believes is impermissible employer conduct during a union campaign.

The TIPS Rules

Long embedded in labor relations law are the TIPS rules. While not inclusive of every possible employer violation during a union campaign, the TIPS rules cover most areas of violations in a general way. So, what are they?

• Employers cannot Threaten. Don’t say the location will shut down if the union is voted in.
• Employers cannot Interrogate. Don’t ask employees who is behind all this.
• Employers cannot Promise. Don’t promise increased pay and benefits (or better air conditioning) if the union is voted down.
• Employers cannot Spy. Don’t increase surveillance, even by watching those already existing cameras, once union activity begins.

Coffee Shop Specifics

So, what did the Board find Starbucks guilty of? Basically, Starbucks was accused of violating almost all of the TIPS rules. First, the Board upheld the ALJ’s finding that Starbucks Threatened its employees by stating that there would be a loss of pay and benefits if the union came in. Specifically, there was an alleged threat to take way a college tuition benefit. Second, although not described specifically as improper Interrogation, Starbucks was found guilty of unlawfully asking employees to describe their grievances in a way that never had been done prior to the onset of union activity. Third, Starbucks further was found to have made Promises of a sort – that is, promises to remedy any grievances with the implication that union representation was unnecessary. Finally, as to Surveillance, Starbucks was found guilty of parking its district manager in the store with a laptop in a position from where she could monitor all the activities of the baristas. Starbucks was ordered to cease and desist and to post notices.

Take-Outs

The takeaways from this recent Starbucks decision are fairly simple. When union activity begins, be careful to follow the TIPS rules. Do not change past company activity in such a way that it appears to be a reaction to, or be in retaliation for, the protected union activity of your employees. Instead, consult with counsel and formulate a legal plan for the company response within the bounds of the current law under the NLRA.