Starbucks CEO Addresses Controversy Surrounding Protests at Its Stores Amid Israel-Gaza Conflict
Starbucks CEO dismisses protests over Israel war as misinformation; Laxman Narasimhan clarifies company's stance amidst online rumors
"People protesting and causing disruptions at our stores over the Israel-Hamas war have been misled by false information circulating online about our company's position," said Starbucks CEO Laxman Narasimhan in a letter to employees and customers.
"Protests in cities worldwide, including North America, have escalated, leading to numerous incidents of vandalism in many of our stores," he stated. "We have collaborated with local authorities to prioritize the safety of our partners and customers."
The letter serves as an effort to disentangle Starbucks from war-related controversies. Additionally, Starbucks has endeavored to distance itself from pro-Palestine stances adopted by Starbucks Workers United, a union for Starbucks employees, which have offended certain pro-Israel advocates.
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Simultaneously, it is experiencing weaker holiday sales, as estimated by analysts. Its stock recently endured its longest decline to date, lasting 12 days until earlier this month. Starbucks is also contending with union demands for better pay and working conditions, as well as allegations of unlawful anti-union practices.
The company stated that certain demonstrations related to the conflict in Gaza were directly influenced by the unions' remarks. Approximately 350 of the company's 9,300 corporate-owned stores in the United States are now unionized.
After the October 7 terrorist attacks by Hamas against Israel, the Starbucks Workers United union shared a "Solidarity with Palestine" post on social media platform X. The post included an image of a bulldozer operated by Hamas tearing down a fence on the Gaza strip during the attacks, as reported by certain news organizations.
The union clarified that the tweet was not authorized by them or their workers, and the account promptly deleted the post. Despite this, the incident led to some pro-Israel supporters calling for a boycott of Starbucks on social media.
Starbucks attributed some of the protests surrounding the Gaza conflict directly to the comments made by the union. Out of the approximately 9,300 corporate-owned stores in the United States, over 350 are unionized. The company publicly disassociated itself from the tweet.
Starbucks has stated their strong condemnation of the acts of terrorism, hate, and violence, as well as their disagreement with the statements and views expressed by Workers United and its members. The company emphasized that the words and actions of Workers United belong to them alone. Additionally, Starbucks has taken legal action against the union for trademark infringement and has demanded that they cease using the company's name and logos. Starbucks expressed concern that the association with the union was causing damage to its reputation and putting its workers at risk.
In October, the union responded with a lawsuit, alleging that Starbucks had made false accusations against the union in an attempt to strengthen its unlawful anti-union efforts. The lawsuit claimed that the company's statements were aimed at tarnishing the union's reputation among both workers and the public.
The union endorsed a statement from Jewish Voice for Peace in October condemning Hamas attacks on Israel and calling for "people of conscience to stop the imminent genocide of Palestinians."
