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Key Takeaways
- The U.S. Supreme Court ruled in favor of Starbucks in a dispute over the firing of pro-union workers in Tennessee in 2022.
- The justices said a lower court did not use a strict enough standard when deciding that the coffee chain had to rehire the employees.
- Starbucks claimed the firings came because the employees brought a TV crew into a closed store, while the workers said the dismissals were because of their union activities.
Starbucks (SBUX) shares rose Thursday as the U.S. Supreme Court ruled in favor of the world’s biggest coffee chain in a dispute over fired pro-union employees in Tennessee.
The justices voted overwhelmingly to reject a lower court ruling that approved a National Labor Relations Board (NLRB) decision requiring Starbucks to rehire seven Memphis employees while the board’s administrative case against the company proceeded.
Starbucks claimed the workers were let go in 2022 because they brought a television crew into a closed store. The employees claimed the firings were because of their unionizing efforts.
Supreme Court Rules That Lower Court Should Have Used Higher Standard
The high court ruled that the lower court should have used a higher standard to determine if Starbucks actually violated labor laws.
Eight justices signed on to the opinion written by Justice Clarence Thomas. Justice Ketanji Brown Jackson concurred with the overall decision but dissented on some points.
In an email to Investopedia, Starbucks said “consistent federal standards” are important to make sure “employees know their rights and consistent labor practices are upheld.”
Workers United President Calls Ruling ‘Particularly Egregious’
Lynne Fox, President of Workers United, the union representing Starbucks workers, called the ruling “particularly egregious” because “working people have so few tools to protect and defend themselves when their employers break the law.”
Shares of Starbucks rose 1.6% to $80.63 as of 1:45 p.m. ET Thursday but are down about 16% year-to-date.