Starbucks' investor group urges shareholders to replace directors over labor row

Core Viewpoint - Starbucks is facing pressure from a coalition of investors, including public-sector pension funds, urging shareholders to vote against the reelection of two directors due to ongoing labor relations issues [1][4]. Group 1: Labor Relations and Union Activities - The coalition's move targets lead independent director Jorgen Vig Knudstorp and Beth Ford, chair of the Nominating and Corporate Governance Committee, amid Starbucks' struggle to finalize a collective agreement with its unionized baristas [2]. - Over 3,800 baristas participated in a nationwide strike last year, marking the longest work stoppage in Starbucks' history, as the union demands better staffing, predictable schedules, and higher pay [3]. - Investors expressed concerns that a lack of constructive relations with the unionized workforce could hinder the company's turnaround efforts [4]. Group 2: Investor Concerns and Company Response - The investor group previously raised concerns about the board's decision to eliminate the Environmental, Partner, and Community Impact Committee without explanation [5]. - Starbucks stated that the responsibilities of the eliminated committee were reassigned to existing committees, with the full board taking on primary labor oversight [6].