Labor Movements Are Heating Up Again

What Starbucks, Walmart, and Amazon Union Wins Mean for Management

If you're in management, there's much to pay attention to in labor relations. The latest union activity at Starbucks, Walmart, and Amazon is making waves, and it's got implications for leaders across industries. These developments signal a growing momentum for organized labor and new challenges for businesses that may not have dealt with unions before—or in a long time. Here's what you need to know and how to prepare.

Starbucks: Reopening Stores Amid Union Pressure

After a labor judge ruled that the closures were illegal, Starbucks was just ordered to reopen two stores in Ithaca, NY. The judge said the coffee giant shut down the locations last year to discourage union organizing—something the National Labor Relations Board (NLRB) is increasingly cracking down on.

For Starbucks management, the decision means more than just reopening a couple of stores. It's about navigating what comes next: working with union representatives, dealing with the NLRB, and facing more pressure from employees who see unionization as a path to better working conditions. Starbucks has been resisting unionization efforts for a while, but the tide may be turning as Workers United continues to gain traction in more locations across the country.

Takeaway for Management: If your business faces union activity, be prepared for legal scrutiny. Carefully assess how your decisions might be viewed in the context of labor law, and start thinking about how you can foster positive employee relations to avoid the same pitfalls Starbucks is now dealing with.

Walmart: Unionization in Canada

Walmart may have its first unionized depot in Canada. Around 800 workers at a Mississauga, Ontario, warehouse voted to join Unifor, Canada's largest private-sector union. The vote still needs to be certified, but if it goes through, Walmart will need to navigate collective bargaining with the workers on issues like safety, scheduling, wages, and benefits.

Historically, Walmart has resisted unionization, so management is likely preparing for a challenge. Unifor's president expects legal battles ahead, but this could inspire workers at other Walmart locations and companies to pursue similar efforts.

Takeaway for Management: Once the momentum starts, unionization can spread quickly. If your workforce sees a successful unionization effort in a similar company, they may consider it themselves. Take this time to review your employee relations policies, compensation, and working conditions. Staying ahead of labor issues is critical to maintaining a productive and engaged workforce.

Amazon: Teamsters Gain a Foothold in New York

Amazon is no stranger to labor challenges, and the Teamsters are the latest union to make inroads with the company's delivery drivers. Hundreds of workers employed by third-party contractors in Queens, NY, have joined the union, calling for better working conditions, including reasonable workloads and properly maintained trucks.

The NLRB recently ruled that Amazon should be considered a "joint employer" for some of these workers, which could open the door to more bargaining obligations for the e-commerce giant. This move is particularly significant, as it means Amazon can't sidestep responsibility by saying these workers are technically employed by contractors.

Takeaway for Management: The joint employer ruling is a game changer. If you use third-party contractors, you may not be immune to labor disputes and union efforts. Keep an eye on how this plays out with Amazon, and start reviewing your contracts and relationships with subcontractors. You might need to adjust your approach to ensure compliance with labor laws and avoid unnecessary risk.

What This Means for Management

The lesson here is clear: union activity is on the rise, affecting even the most prominent players in the game. Whether it's reopening stores, handling union certification votes, or facing the joint employer doctrine, these companies are showing that no business is too large to face union pressure.

For management, the key is preparation. Understand that the push for unionization isn't just about wages but also working conditions, schedules, safety, and benefits. Workers are increasingly looking for a fair share of the profits, and unions are happy to step in when they see an opportunity.

Here are a few steps you can take:

1. Proactive Communication: Keep open lines of communication with employees. Transparency, respect, and direct dialogue can often alleviate concerns before they escalate into a unionization drive.
2. Evaluate Compensation and Benefits: Regularly review your pay structure, benefits, and overall work environment. Fair and competitive compensation is one of the best deterrents to union organizing.
3. Understand the Legal Landscape: Stay updated on labor law changes, particularly around the joint employer doctrine and recent NLRB rulings. Ensure your legal team is prepared to handle potential challenges.
4. Plan for Contingencies: If your business faces unionization, have a plan in place. Educate your management team on labor relations' dos and don'ts and work closely with legal counsel to ensure compliance.

The takeaway? It's time to review how your business treats its workforce and what steps you can take to foster a positive, engaged, and loyal team. Waiting until union efforts are underway might be too late.

What's your strategy for handling potential union activity? Have you made changes to your employee relations policies recently? Share your insights in the comments!