April 24 (Reuters) - A U.S. appeals court on Wednesday
rejected Starbucks' ( SBUX ) claims that an election won by a
union at the coffee company's flagship Seattle store was invalid
because it was held via mail ballot during the COVID-19
pandemic.
A three-judge 9th U.S. Circuit Court of Appeals panel upheld
a National Labor Relations Board decision that said the company,
which is facing a nationwide union organizing campaign, must
recognize and bargain with the store's union, which represents
nearly 100 workers.
Starbucks ( SBUX ) claimed that a labor board official who ordered
the mail-ballot election in March 2022 used the wrong data to
determine that an in-person election was unsafe because there
was an upward trend in COVID cases in the Seattle area at the
time. Workers at the store voted 38-27 to unionize.
The 9th Circuit on Wednesday disagreed, finding that the
official correctly applied a test the board adopted in 2020 for
determining when a mail-ballot election was appropriate because
of the pandemic.
Starbucks ( SBUX ) and Workers United, the union organizing the
company's stores, did not immediately respond to requests for
comment.
During the pandemic, most union elections were held via mail
ballot, and the labor board is still ordering elections by mail
in some cases.
Business groups and Republican lawmakers have criticized the
labor board for continuing to shun in-person elections even as
the pandemic subsided. They claim mail-ballot elections lower
voter participation and jeopardize workers' rights to choose
whether to be represented by a union.
In a 2020 decision involving hospital operator Aspirus, the
labor board said that, among other factors, regional directors
should look at the 14-day trend in local COVID cases in deciding
how to administer a union election.
In Wednesday's case, Starbucks ( SBUX ) claimed that meant looking at
the average rate of new cases each day over a 14-day period, and
not the number of cases reported 14 days apart as the regional
director had done.
But the 9th Circuit in its decision noted that the labor
board had not defined what a 14-day trend was or laid out a
specific method for calculating it.
"Even if we credit Starbucks's ( SBUX ) approach ... our standard of
review does not permit us to displace the NLRB's choice between
two fairly conflicting views," Circuit Judge M. Margaret McKeown
wrote for the court.
Workers at more than 420 of Starbucks' ( SBUX ) 9,000 U.S. stores
have voted to unionize since 2021. The 9th Circuit case is one
of several involving the organizing campaign to reach federal
appeals courts.