IUF - International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Associations

09/08/2025 | News release | Distributed by Public on 09/08/2025 09:01

Trade unions challenge investors over human rights at Starbucks

Published: 08/09/2025

The IUF-together with its European regional organization EFFAT and United States affiliates Workers United and SEIU-on September 5, 2025 filed formal complaints with the Organization for Economic Cooperation and Development (OECD). The complaints seek mediation with two of the largest European institutional investors in Starbucks, UBS Asset Management and Northern Trust Global Investments, over the failure by Starbucks to adhere to global human rights standards.

The complaints, submitted to OECD's National Contact Points in the firms' home countries of Switzerland and the United Kingdom, argue that both investors have failed in their due diligence responsibilities under the OECD's Guidelines for Multinational Enterprises on Responsible Business Conduct. Those guidelines call on the investors to engage with Starbucks management over its failures to adhere to international standards on human rights, labor rights, and consumer protection.

Since late 2021, over 650 Starbucks locations in the United States have been unionized by Workers United/SEIU. While Starbucks began negotiations with Workers United in early 2024, these negotiations broke down after Starbucks refused to bargain in good faith, forcing workers to take action to bring the company back to the negotiating table.

"Investors UBS and Northern Trust should be concerned that Starbucks isn't acting like the socially-responsible company it claims to be, and this step will help trigger necessary dialogue. They fell short on Starbucks, but we hope that engagement with us through an NCP-sponsored mediation will get them back in the lead," said Kristjan Bragason, Acting General Secretary of the IUF. "We hope that mediation can lead to agreement on a robust program of engagement by these top European investors with Starbucks and with stakeholders that can help end the company's violations of international standards."

We hope that mediation can lead to agreement on a robust program of engagement by these top European investors with Starbucks and with stakeholders that can help end the company's violations of international standards.
Kristjan Bragason, Acting General Secretary of the IUF
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IUF - International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Associations published this content on September 08, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on September 08, 2025 at 15:01 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]