First NJ Starbucks votes for union: What does that mean for coffee drinkers?

The decision by Starbucks employees in Hopewell to become the first among the coffee giant's stores to join a union sets up a showdown between the workers who say they need better working conditions and the company that prizes flexibility.

At stake, experts say, are a range of issues that get to the heart of customer service. More hands on deck could lead to happier workers and shorter lines — and potentially higher prices to pay for it.

"You could see higher costs, you could see an increase in morale, and you could see less flexibility," said Lori Rassas, a human resources consultant based in New York. "Sometimes it is invisible (to the customer), sometimes it's not."

Starbucks baristas in Hopewell this week voted 15-0 to join the Workers United union, joining more than two-dozen other Starbucks locations nationwide. The company's stores in Hamilton and Summit also have organizing campaigns underway.

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The votes are part of what experts say is an increased interest, particularly among young workers in the private sector, to join labor unions and have a bigger voice in their companies' operations.

It could leave customers in the middle of a long-standing debate about the impact of the union on their experience. Starbucks workers who support the union have said they are short-staffed and are burning out. Starbucks has said its very business model relies on flexibility to move employees around to meet demand.

"Companies have really grown to rely on this kind of flexibility (to staff their stores)," said Michael Sturman, professor of human resource management at Rutgers School of Management and Labor Relations. "But this kind of flexibility has proven very challenging for some individuals. And I think individuals are starting to push back on this lack of clarity in their personal futures."

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Worker frustration mounts

Starbucks, one of the world's most iconic brands, has about 250 stores in New Jersey. It has carved out its niche by becoming a "third place," what the company describes as a warm and welcoming place outside of the home or office.

It's designed to be a place where people can connect, either in person or online, thanks to the company's generous Wi-Fi.

But workers have shown signs of frustration during the pandemic, occasionally taking to TikTok to let off steam over trying to keep up with demanding customers while working short-handed.

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Hailey Kenney started working as a barista at the Hopewell Starbucks in December, just as Workers United announced successful organizing campaigns at Starbucks in Buffalo, New York.

The wins caught her attention. She said she makes a little less than $14 an hour. She typically works Sunday through Thursday, starting at 4:30 a.m. And she tries to work as much as 40 hours a week, although lately her hours have been cut.

Kenney said other co-workers' hours have been cut as well, and she can't figure out why; the store is busy and they could use the extra hands.

When the chance came to join Workers United, she voted in favor.

"I would like to see changes where hours could not be cut as suddenly as they are," Kenney, 24, said. "Sometimes you will work up to 40 hours and then sometimes you’re barely getting 20. I can’t afford to live like that."

Starbucks has challenged the union's bid to organize individual stores with the National Labor Relations Board, but it has been unsuccessful.

The company's business model would be put to the test. In filings with the NLRB, Starbucks' lawyers said chain depends on a unified customer experience no matter the location, down to the location of the cake pops in the food display.

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Starbucks said in its filings that the company relies heavily on technology that forecasts customer demand and helps schedule employees.

The result: Customers can visit any Starbucks and confidently know exactly what to expect.

"Starbucks designed its operations to enable its partners (most of whom are part-time) to work in any store, at any time, to meet its operational needs," the company said.

After the vote on Monday, a Starbucks spokesperson said the company previously announced it is raising its minimum wage for baristas to $15 an hour.

The company's average wage is $17 an hour nationwide, and it offers benefits, including health coverage for employees working at least 20 hours a week, college tuition and vacation time.

“We are listening and learning from the partners in these stores as we always do across the country," the company said in a statement. "From the beginning, we’ve been clear in our belief that we are better together as partners, without a union between us, and that conviction has not changed. We respect our partners' right to organize and are committed to following the NLRB process.”

How will a union affect Starbucks?

Experts said the labor market is tilting in workers' favor — a shift in the landscape that has seen unionization among the private sector fall from a peak of 35% in 1953 to just 6.1%. 

Ruth Milkman, chair of the Labor Studies department at the City University of New York, said the renewed interest is being led by millennials and Generation Z who have grown up managing crises: climate change, income inequality, student debt, affordable housing, and, most recently, a pandemic.

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With job openings plentiful, experts said, workers are emboldened.

"I think we're at a sort of moment in time where many young people who were led to expect that if they play by the rules, went to college, did things right, got a job, that they would have a decent life," Milkman said. "And instead, they face a situation where, if they do find a job, it's often very unstable."

In the case of Starbucks in Hopewell, the union's win sets the stage for the company to negotiate a collective bargaining agreement, a contract that spells out working conditions for employees, including pay, benefits and work rules.

James Brudney, a law professor at Fordham University School of Law in New York, said customers in the short-term could see worker actions designed to put pressure on the company if negotiations are drawn out. But there is little clarity about what would follow.

For example, Starbucks could increase prices to pay for more hiring, higher wages and extra benefits. But it also might be wary of doing so to stay in line with its competition, experts said.

Meanwhile, the union could insist on rigidly adhering to rules regarding breaks or overtime, potentially leaving customers waiting in line watch as a barista clocks out.

On the flip side, the union also could demand more stability in scheduling and more workers to help out, presumably leading to a improved morale and more satisfied customers.

"Employees have a lot more bargaining power now because of the tight labor market," said Bill Conerly, an economist and business consultant based in Portland, Oregon. "One way that you see this is people resigning from one job going across the street to get hired elsewhere."

"Another way, you see it is the unionization effort," he said. "I think they're all just part and parcel of an exceptionally tight labor market that I think will continue for years to come."

Michael L. Diamond is a business reporter who has been writing about the New Jersey economy and health care industry for more than 20 years. He can be reached at mdiamond@gannettnj.com.