Starbucks Corporation (NASDAQ: SBUX) was reportedly sued by eight unionized employees of a South Carolina store who complained that the coffee chain threw false accusations against them.
What Happened: The coffee chain’s employees filed the lawsuit in a South Carolina state court against Starbucks and the store manager in Anderson, South California, reported Reuters.
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What Happened: The workers reportedly complained that the manager asked the police to charge them with assault and kidnapping after they asked for a wage hike in August.
Starbucks said it was reviewing the lawsuit and a company spokesperson said that “no Starbucks partner has been or will be disciplined for supporting or engaging in lawful union activity,” reported Reuters.
“Interest in a union does not exempt partners from following policies and procedures that apply to all partners.”
Why It Matters: The employees at the store had voted 18-0 to unionize, according to Reuters.
The National Labor Relations Board said in August that Starbucks illegally withheld wages and benefits from union workers.
Starbucks’ new CEO, Laxman Narasimhan, who succeeded Howard Schultz, is grappling with a wave of unionization with 209 stores voting in favor to form unions since early August.
Price Action: On Monday, Starbucks shares closed 2.9% higher at $88.90 and gained 0.8% in the after-hours trading, according to data from Benzinga Pro.
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