New Starbucks CEO looks to cool union tension

New Starbucks Corporation (NASDAQ:SBUX) CEO Brian Niccol tread lightly into the sensitive issues of unionization in a letter to employees. Niccol said that he deeply respects the right of the Seattle-based company’s workers to choose to be represented by a union, and that he was committed to engaging in a positive with union representatives. In his letter, Niccol also reiterated the company’s commitment to foster a positive work environment in its U.S. stores, and values direct relations with workers. “If our partners choose to be represented, I am committed to making sure we engage constructively and in good faith with the union and the partners it represents,” he wrote.

What to watch: Starbucks (SBUX) continues contract negotiations with the Workers United union this week. The coffee chain giant began negotiations with Workers United earlier in the year to create a foundational framework to guide collective bargaining in the U.S. The union delegation represents more than 10,500 Starbucks (SBUX) employees across over 490 stores. Analysts think the positive dialogue could help Starbucks (SBUX) in the near term, but have warned that it is likely that Starbucks (SBUX) will have trouble reaching an agreement with the union, which means tensions could easily flare back up again.

Shares of Starbucks (SBUX) dipped 0.15% in premarket trading to $94.35. The stock has not traded over $100 since late in 2023.