WASHINGTON, April 23 (Reuters) - The U.S. Supreme Court
on Tuesday steps into the contentious unionization drive at
Starbucks ( SBUX ) as the coffee chain challenges a judicial
order requiring it to rehire seven employees at a Tennessee cafe
who were fired as they pursued efforts to organize.
The justices are set to hear arguments in the company's
appeal of a lower court's approval of an injunction sought by
the U.S. National Labor Relations Board ordering the
reinstatement of the workers. It is a case that could make it
harder to bring a quick halt to labor practices challenged as
unfair under federal law while the NLRB resolves complaints.
The case centers on the legal standard that federal courts
must use to issue a preliminary injunction requested by the NLRB
under the a federal law called the National Labor Relations Act.
Such orders are intended as an interim tool to halt unfair labor
practices while a case is proceeding before the board.
Under section 10(j) of the labor law, a court may grant an
injunction if it is deemed "just and proper." Starbucks ( SBUX ) contends
that if the lower courts had applied stricter criteria, similar
to the standard used by some other courts and in non-labor legal
disputes, the case would have come out differently.
About 400 Starbucks ( SBUX ) locations in the United States have
unionized, involving more than 10,000 employees. Both sides at
times have accused the other of unlawful or improper conduct.
Hundreds of complaints have been filed with the NLRB
accusing Starbucks ( SBUX ) of unlawful labor practices such as firing
union supporters, spying on workers and closing stores during
labor campaigns. Starbucks ( SBUX ) has denied wrongdoing and said it
respects the right of workers to choose whether to unionize.
In a break from the acrimony, both sides in February said
they had agreed to create a "framework" to guide organizing and
collective bargaining and potentially settle scores of pending
legal disputes.
The case began in 2022, when the workers at the Poplar
Avenue store in Memphis became among the first to unionize.
Early in their efforts, they allowed a television news crew into
the Starbucks ( SBUX ) cafe after hours to talk about the union campaign.
Seven workers present that evening were fired, including several
who belonged to the union organizing committee.
Despite the dismissals, employees there later voted to join
Workers United.
The union filed unfair labor charges with the NLRB over the
firings and other discipline by managers. The NLRB sought an
injunction, alleging that Starbucks ( SBUX ) unlawfully fired the workers
for supporting the union drive and to send a message to other
workers.
U.S. District Judge Sheryl Lipman granted the injunction in
2022, reinstating the workers in order to address the "chilling
effect" of the dismissals on the unionization effort while the
NLRB resolves the case. The Cincinnati, Ohio-based 6th U.S.
Circuit Court of Appeals upheld the injunction in 2023.
The 6th Circuit rejected the company's argument that Lipman
should have used a stringent four-factor test to weigh the bid
for an injunction, as courts typically do in non-labor disputes.
This test includes an assessment of whether the side seeking
relief would suffer irreparable harm and is likely to succeed on
the merits of the case.
The Supreme Court's ruling is expected by the end of June.