Business
As Starbucks CEO, Howard Schultz violated labor law with barb at Long Beach barista, labor board finds
In April 2022, a Starbucks barista and union organizer was invited to meet with the company’s upper management in Long Beach. During the meeting, the employee raised several concerns, including charges of unfair labor practices the company faced.
Howard Schultz, who had just begun his third stint as the company’s chief executive, became irritated and shot back: “If you’re not happy at Starbucks, you can go work for another company.”
Now, the National Labor Relations Board has found that Schultz acted unlawfully by inviting an employee to quit after they raised issues related to unionization.
The board’s decision, issued Oct. 2, ordered Starbucks to cease and desist from implying employees could be fired for engaging in protected activities such as union organizing. The company must also post a notice of employee rights at all of the Long Beach stores from which employees attended the meeting with Schultz.
In its decision, the board wrote that it has “long held unlawful employers’ statements that employees dissatisfied with working conditions should quit rather than try to improve them through union activity.”
Starbucks did not immediately respond to a request for comment regarding the NLRB’s Long Beach decision, which comes as the coffee chain has changed its stance on unionization efforts.
Until this year, the company had ardently resisted the campaign to organize its workers, which began in 2021. Federal labor regulators found Starbucks repeatedly violated labor laws by disciplining and firing workers involved in unionizing activity, shutting down stores and stalling contract negotiations.
But in February the company announced it had agreed with the union behind the campaign, Starbucks Workers United, to streamline negotiations on contracts and take a more neutral approach when workers at unionized stores took steps to organize.
Earlier this week, the unionization drive reached a milestone, when a store in Washington became the 500th U.S. location to unionize. Starbucks Workers United has credited the company’s new posture for a wave of some 100 Starbucks stores that have unionized since March.
“We’re happy to see the NLRB continue to stand up for workers and our legal right to organize. At the same time, we’re focused on the future and are proud to be charting a new path with the company,” Michelle Eisen, national organizing committee co-chair at Starbucks Workers United and a barista at a Buffalo, N.Y., store, said in an emailed statement about the decision on Schultz’s comment.
Starbucks spokesperson Phil Gee said the company disagreed with the decision, and that sessions such as the one held with baristas in Long Beach and other locations across the country aimed to gather input from workers.
“Our focus continues to be on training and supporting our managers to ensure respect of our partners’ rights to organize and on progressing negotiations towards ratified store contracts this year,” Gee said in emailed statement Friday.
Beyond charges from federal regulators and other fallout from its earlier anti-union approach, the company is grappling with a change in leadership, softening demand, boycotts over its perceived support for Israel, pressures from activist investors and criticism that it has strayed far from its roots with menus of overly complicated items that take too long to serve. Sales in North American stores dipped 2%, and sales in the rest of the world dipped 7%, the company reported in July.
Schultz stepped down last year and in August the company named a new chief executive, Brian Niccol, to replace Schultz’s successor. Niccol has said he’ll stick with the company’s new position on unions.
“I deeply respect the right of partners to choose, through a fair and democratic process, to be represented by a union,” Niccol wrote in a letter addressed to union members and posted on the company’s website last week. “I am committed to making sure we engage constructively and in good faith with the union and the partners it represents.”
Niccol penned the remarks in response to a letter signed by hundreds of workers who serve as bargaining delegates from various stores for the union. The workers reached out ahead of a scheduled bargaining session, the first of Niccol’s tenure.
Still, workers’ views on whether to unionize is not unanimous.
As employees at the store in Washington were voting to join the union, workers at a Starbucks in Hollywood on Monday chose not to join. Also on that day, a store in Salt Lake City failed to secure votes needed to win union recognition.
The NLRB has conducted a total of 602 union elections at Starbucks stores, with 102 of them falling short and 500 passing, according to NLRB spokesperson Kayla Blado. In California, 61 stores have held union elections and 41 of them have had their bargaining units recognized by the labor board.
At the Hollywood store, pro-union workers had been optimistic ahead of the vote count, which came out 14 opposed to unionization to 6 favoring it. The workers had reached out to union officials in February, frustrated by problems of chronic understaffing.
Mikey Martinez, a shift supervisor who has worked at the store for more than five years, said he was fearful when he and co-workers began talking about unionizing. But his initial concerns about backlash dissipated after managers held a meeting about a month ago to explain the company’s new, more neutral stance.
It was “really good to be able to speak about it without checking behind our shoulders to see if anyone is listening,” Martinez said.
Business
Ivan Boesky Was Seen as Greed Incarnate, and Never Said Otherwise
Before the answers to life’s questions fit in our pocket, you used to have to turn a dial. If you were lucky, Phil Donahue would be on, ready to guide you toward enlightenment. In a stroke of deluxe good fortune, Dr. Ruth Westheimer might have stopped by to be the enlightenment. He was the search engine. She was a trusted result.
Donahue hailed from Cleveland. The windshield glasses, increasingly snowy thatch of hair, marble eyes, occasional pair of suspenders and obvious geniality said “card catalog,” “manager of the ’79 Reds,” “Stage Manager in a Chevy Motors production of ‘Our Town.’” Dr. Ruth was Donahue’s antonym, a step stool to his straight ladder. She kept her hair in a butterscotch helmet, fancied a uniform of jacket-blouse-skirt and came to our aid, via Germany, with a voice of crinkled tissue paper. Not even eight years separated them, yet so boyish was he and so seasoned was she that he read as her grandson. (She maybe reached his armpit.) Together and apart, they were public servants, American utilities.
Donahue was a journalist. His forum was the talk show, but some new strain in which the main attraction bypassed celebrities. People — every kind of them — lined up to witness other people being human, to experience Donahue’s radical conduit of edification, identification, curiosity, shock, wonder, outrage, surprise and dispute, all visible in the show’s televisual jackpot: cutaways to us, reacting, taking it all in, nodding, gasping. When a celebrity made it to the “Donahue” stage — Bill Clinton, say, La Toya Jackson, the Judds — they were expected to be human, too, to be accountable for their own humanity. From 1967 to 1996, for more than 6,000 episodes, he permitted us to be accountable to ourselves.
What Donahue knew was that we — women especially — were eager, desperate, to be understood, to learn and learn and learn. We call his job “host” when, really, the way he did it, running that microphone throughout the audience, racing up, down, around, sticking it here then here then over here, was closer to “switchboard operator.” It was “hot dog vendor at Madison Square Garden.” The man got his steps in. He let us do more of the questioning than he did — he would just edit, interpret, clarify. Egalitarianism ruled. Articulation, too. And anybody who needed the mic usually got it.
The show was about both what was on our mind and what had never once crossed it. Atheism. Naziism. Colorism. Childbirth. Prison. Rapists. AIDS. Chippendales, Chernobyl, Cher. Name a fetish, Phil Donahue tried to get to its bottom, sometimes by trying it himself. (Let us never forget the episode when he made his entrance in a long skirt, blouse and pussy bow for one of the show’s many cross-dressing studies.) Now’s the time to add that “Donahue” was a morning talk show. In Philadelphia, he arrived every weekday at 9 a.m., which meant that, in the summers, I could learn about compulsive shopping or shifting gender roles from the same kitchen TV set as my grandmother.
Sex and sexuality were the show’s prime subjects. There was so much that needed confessing, correction, corroboration, an ear lent. For that, Donahue needed an expert. Many times, the expert was Dr. Ruth, a godsend who didn’t land in this country until she was in her late 20s and didn’t land on television until she was in her 50s. Ruth Westheimer arrived to us from Germany, where she started as Karola Ruth Siegel and strapped in as her life corkscrewed, as it mocked fiction. Her family most likely perished in the Auschwitz death camps after she was whisked to the safety of a Swiss children’s home, where she was expected to clean. The twists include sniper training for one of the military outfits that would become the Israel Defense Forces, maiming by cannonball on her 20th birthday, doing research at a Planned Parenthood in Harlem, single motherhood and three husbands. She earned her doctorate from Columbia University, in education, and spent her postdoc researching human sexuality. And because her timing was perfect, she emerged at the dawn of the 1980s, an affable vector of an era’s craze for gnomic sages (Zelda Rubinstein, Linda Hunt, Yoda), masterpiece branding and the nasty.
Hers was the age of Mapplethorpe and Madonna, of Prince, Skinemax and 2 Live Crew. On her radio and television shows, in a raft of books and a Playgirl column and through her promiscuous approach to talk-show appearances, she aimed to purge sex of shame, to promote sexual literacy. Her feline accent and jolly innuendo pitched, among other stuff, the Honda Prelude, Pepsi, Sling TV and Herbal Essences. (“Hey!” she offers to a young elevator passenger. “This is where we get off.”) The instructions for Dr. Ruth’s Game of Good Sex says it can be played by up to four couples; the board is vulval and includes stops at “Yeast Infection,” “Chauvinism” and “Goose Him.”
On “Donahue,” she is direct, explicit, dispelling, humorous, clear, common-sensical, serious, vivid. A professional therapist. It was Donahue who handled the comedy. On one visit in 1987, a caller needs advice about a husband who cheats because he wants to have sex more often than she does. Dr. Ruth tells Donahue that if the caller wants to keep the marriage, and her husband wants to do it all the time, “then what she should do is to masturbate him. And it’s all right for him to masturbate himself also a few times.” The audience is hear-a-pin-drop rapt or maybe just squirmy. So Donahue reaches into his parochial-school-student war chest and pulls out the joke about the teacher who tells third-grade boys, “Don’t play with yourself, or you’ll go blind.” And Donahue raises his hand like a kid at the back of the classroom and asks, “Can I do it till I need glasses?” Westheimer giggles, maybe noticing the large pair on Donahue’s face. This was that day’s cold open.
They were children of salesmen, these two; his father was in the furniture business, hers sold what people in the garment industry call notions. They inherited a salesman’s facility for people and packaging. When a “Donahue” audience member asks Westheimer whether her own husband believes she practices what she preaches, she says this is why she never brings him anywhere. “He would tell you and Phil: ‘Do not listen to her. It’s all talk,’” which cracks the audience up.
But consider what she talked about — and consider how she said it. My favorite Dr. Ruth word was “pleasure.” From a German mouth, the word conveys what it lacks with an American tongue: sensual unfurling. She vowed to speak about sex to mass audiences using the proper terminology. Damn the euphemisms. People waited as long as a year and a half for tickets to “Donahue” so they could damn them, too. But of everything Westheimer pitched, of all the terms she precisely used, pleasure was her most cogent product, a gift she believed we could give to others, a gift she swore we owed ourselves.
I miss the talk show that Donahue reinvented. I miss the way Dr. Ruth talked about sex. It’s fitting somehow that this antidogmatic-yet-priestly Irish Catholic man would, on occasion, join forces with a carnal, lucky-to-be-alive Jew to urge the exploration of our bodies while demonstrating respect, civility, reciprocation. They believed in us, that we were all interesting, that we could be trustworthy panelists in the discourse of being alive. Trauma, triviality, tubal ligation: Let’s talk about it! Fear doesn’t seem to have occurred to them. Or if it did, it was never a deterrent. Boldly they went. — And with her encouragement, boldly we came.
Wesley Morris is a critic at large for The New York Times and a staff writer for the magazine.
Business
Party City to shut down after nearly 40 years in business
Party City, the party and costume supply chain with more than 70 locations in California including several in Los Angeles, is shutting down operations immediately and laying off its employees.
In an online meeting Friday viewed by Bloomberg News, Party City Chief Executive Barry Litwin told corporate employees that it would be their last day of work. CNN reported that employees would not receive severance pay.
“That is without question the most difficult message that I’ve ever had to deliver,” Litwin said in the video. The company will be “winding down” immediately, he said.
The chain, which has been in business for nearly 40 years and has around 700 locations, according to its website, could not handle a decrease in consumer spending triggered by everyday high prices, Litwin told employees.
Going-out-of-business sales began Friday, just 14 months after the company emerged from bankruptcy and four months after Litwin began as chief executive. The company filed for Chapter 11 bankruptcy in 2023 with about $1.8 billion in debt and emerged from the restructuring process under a plan meant to ensure its viability.
The company, however, continued to struggle and was considering reentering bankruptcy earlier this month, Bloomberg reported. The New Jersey retailer was falling behind on rent at some locations and running out of cash, according to the report.
Several retailers and fast-casual restaurant chains have struggled this year amid rising operating costs and inflation-wary consumers, including Big Lots, which is preparing to sell its stores, and Red Lobster, which filed for bankruptcy in May. Bricks-and-mortar locations in particular are scrambling to keep up with online retailers and big-box chains.
Business
How Wally Amos Made His Cookies — and Himself — ‘Famous’
Before the answers to life’s questions fit in our pocket, you used to have to turn a dial. If you were lucky, Phil Donahue would be on, ready to guide you toward enlightenment. In a stroke of deluxe good fortune, Dr. Ruth Westheimer might have stopped by to be the enlightenment. He was the search engine. She was a trusted result.
Donahue hailed from Cleveland. The windshield glasses, increasingly snowy thatch of hair, marble eyes, occasional pair of suspenders and obvious geniality said “card catalog,” “manager of the ’79 Reds,” “Stage Manager in a Chevy Motors production of ‘Our Town.’” Dr. Ruth was Donahue’s antonym, a step stool to his straight ladder. She kept her hair in a butterscotch helmet, fancied a uniform of jacket-blouse-skirt and came to our aid, via Germany, with a voice of crinkled tissue paper. Not even eight years separated them, yet so boyish was he and so seasoned was she that he read as her grandson. (She maybe reached his armpit.) Together and apart, they were public servants, American utilities.
Donahue was a journalist. His forum was the talk show, but some new strain in which the main attraction bypassed celebrities. People — every kind of them — lined up to witness other people being human, to experience Donahue’s radical conduit of edification, identification, curiosity, shock, wonder, outrage, surprise and dispute, all visible in the show’s televisual jackpot: cutaways to us, reacting, taking it all in, nodding, gasping. When a celebrity made it to the “Donahue” stage — Bill Clinton, say, La Toya Jackson, the Judds — they were expected to be human, too, to be accountable for their own humanity. From 1967 to 1996, for more than 6,000 episodes, he permitted us to be accountable to ourselves.
What Donahue knew was that we — women especially — were eager, desperate, to be understood, to learn and learn and learn. We call his job “host” when, really, the way he did it, running that microphone throughout the audience, racing up, down, around, sticking it here then here then over here, was closer to “switchboard operator.” It was “hot dog vendor at Madison Square Garden.” The man got his steps in. He let us do more of the questioning than he did — he would just edit, interpret, clarify. Egalitarianism ruled. Articulation, too. And anybody who needed the mic usually got it.
The show was about both what was on our mind and what had never once crossed it. Atheism. Naziism. Colorism. Childbirth. Prison. Rapists. AIDS. Chippendales, Chernobyl, Cher. Name a fetish, Phil Donahue tried to get to its bottom, sometimes by trying it himself. (Let us never forget the episode when he made his entrance in a long skirt, blouse and pussy bow for one of the show’s many cross-dressing studies.) Now’s the time to add that “Donahue” was a morning talk show. In Philadelphia, he arrived every weekday at 9 a.m., which meant that, in the summers, I could learn about compulsive shopping or shifting gender roles from the same kitchen TV set as my grandmother.
Sex and sexuality were the show’s prime subjects. There was so much that needed confessing, correction, corroboration, an ear lent. For that, Donahue needed an expert. Many times, the expert was Dr. Ruth, a godsend who didn’t land in this country until she was in her late 20s and didn’t land on television until she was in her 50s. Ruth Westheimer arrived to us from Germany, where she started as Karola Ruth Siegel and strapped in as her life corkscrewed, as it mocked fiction. Her family most likely perished in the Auschwitz death camps after she was whisked to the safety of a Swiss children’s home, where she was expected to clean. The twists include sniper training for one of the military outfits that would become the Israel Defense Forces, maiming by cannonball on her 20th birthday, doing research at a Planned Parenthood in Harlem, single motherhood and three husbands. She earned her doctorate from Columbia University, in education, and spent her postdoc researching human sexuality. And because her timing was perfect, she emerged at the dawn of the 1980s, an affable vector of an era’s craze for gnomic sages (Zelda Rubinstein, Linda Hunt, Yoda), masterpiece branding and the nasty.
Hers was the age of Mapplethorpe and Madonna, of Prince, Skinemax and 2 Live Crew. On her radio and television shows, in a raft of books and a Playgirl column and through her promiscuous approach to talk-show appearances, she aimed to purge sex of shame, to promote sexual literacy. Her feline accent and jolly innuendo pitched, among other stuff, the Honda Prelude, Pepsi, Sling TV and Herbal Essences. (“Hey!” she offers to a young elevator passenger. “This is where we get off.”) The instructions for Dr. Ruth’s Game of Good Sex says it can be played by up to four couples; the board is vulval and includes stops at “Yeast Infection,” “Chauvinism” and “Goose Him.”
On “Donahue,” she is direct, explicit, dispelling, humorous, clear, common-sensical, serious, vivid. A professional therapist. It was Donahue who handled the comedy. On one visit in 1987, a caller needs advice about a husband who cheats because he wants to have sex more often than she does. Dr. Ruth tells Donahue that if the caller wants to keep the marriage, and her husband wants to do it all the time, “then what she should do is to masturbate him. And it’s all right for him to masturbate himself also a few times.” The audience is hear-a-pin-drop rapt or maybe just squirmy. So Donahue reaches into his parochial-school-student war chest and pulls out the joke about the teacher who tells third-grade boys, “Don’t play with yourself, or you’ll go blind.” And Donahue raises his hand like a kid at the back of the classroom and asks, “Can I do it till I need glasses?” Westheimer giggles, maybe noticing the large pair on Donahue’s face. This was that day’s cold open.
They were children of salesmen, these two; his father was in the furniture business, hers sold what people in the garment industry call notions. They inherited a salesman’s facility for people and packaging. When a “Donahue” audience member asks Westheimer whether her own husband believes she practices what she preaches, she says this is why she never brings him anywhere. “He would tell you and Phil: ‘Do not listen to her. It’s all talk,’” which cracks the audience up.
But consider what she talked about — and consider how she said it. My favorite Dr. Ruth word was “pleasure.” From a German mouth, the word conveys what it lacks with an American tongue: sensual unfurling. She vowed to speak about sex to mass audiences using the proper terminology. Damn the euphemisms. People waited as long as a year and a half for tickets to “Donahue” so they could damn them, too. But of everything Westheimer pitched, of all the terms she precisely used, pleasure was her most cogent product, a gift she believed we could give to others, a gift she swore we owed ourselves.
I miss the talk show that Donahue reinvented. I miss the way Dr. Ruth talked about sex. It’s fitting somehow that this antidogmatic-yet-priestly Irish Catholic man would, on occasion, join forces with a carnal, lucky-to-be-alive Jew to urge the exploration of our bodies while demonstrating respect, civility, reciprocation. They believed in us, that we were all interesting, that we could be trustworthy panelists in the discourse of being alive. Trauma, triviality, tubal ligation: Let’s talk about it! Fear doesn’t seem to have occurred to them. Or if it did, it was never a deterrent. Boldly they went. — And with her encouragement, boldly we came.
Wesley Morris is a critic at large for The New York Times and a staff writer for the magazine.
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