Business
Efforts brewing at UC Riverside and UCLA to evict Starbucks from campuses for 'union busting' activities
Two dozen UC Riverside students chanted “People over property” and carried signs that read “Crush the contract” and “Seize the beans of production” as they climbed four flights of stairs within the university’s administrative office Wednesday afternoon.
The goal was to present Chancellor Kim Wilcox a petition with nearly 800 signatories calling on the school’s administration to dump licensing agreements with coffee juggernaut Starbucks because of what critics call “union-busting campaigns.”
The protest Wednesday in Riverside mirrored a similar action Tuesday at UCLA, where students affiliated with the union-organizing group Starbucks Workers United have been leading efforts to push Starbucks off college campuses.
Starbucks Workers United says there are more than 385 stores and more than 9,500 workers unionized throughout company-owned Starbucks outlets. The coffee giant operates 38,587 stores in 80 countries with 235,000 employees.
A number of UC Riverside students rally against Starbucks at UC Riverside.
(Irfan Khan/Los Angeles Times)
One student-run campaign claimed victory last year when Cornell University pledged not to renew a partnership with Starbucks when their contract ends in June 2025.
“We want Starbucks off this campus,” said UC Riverside junior Eren Whitfield, an organizer with the group UC Riverside Students Against Starbucks. “There is a countless list of federal labor violations against Starbucks, including the firing of employees involved with union organizing, the denying of increased benefits and so many other things.”
Whitfield, a psychology major who aspires to get involved in social work, led a protest at noon in front of Hinderaker Hall, the office of the chancellor and school administrators.
He carried a printed copy of the digital petition and headed toward the chancellor’s office with a small cadre of supporters.
The only traffic they ran into was from a line of students and employees that snaked out of one of the several school-run stores that offer Starbucks drinks and snacks.
After reaching the chancellor’s office, Whitfield knocked on Wilcox’s door and received no answer.
Eren Whitfield, right, presents signed petition against Starbucks to Gerry Bomotti, Vice Chancellor and Chief Financial Officer, at Hinderaker Hall, UC Riverside on Jan. 31.
(Irfan Khan/Los Angeles Times)
That’s when Gerry Bomotti, UC Riverside’s vice chancellor and chief financial officer, opened his door near the chancellor’s office and accepted the petition on behalf of the administration.
Whitfield asked that the group be given “some sort of response” by administrators within a week.
Bomotti agreed to read the letter and offer some feedback.
“We’ll want to educate ourselves on what their concerns are and be able to get back to them and chat about it,” he said.
UC Riverside owns a licensing agreement with Starbucks that is also up for renewal in 2025, Bomotti said.
“In essence, we participate in a franchise agreement with them, but we sell and operate everything,” he said.
The campus has one Starbucks store, but several school-affiliated stores that sell Starbucks-branded drinks and products.
All full-time, nonmanagement workers at Starbucks locations throughout the campus are unionized university employees who have collective bargaining rights, campus officials confirmed.
“This protest isn’t just about the workers on campus but about the actions that Starbucks has taken with its employees across the country,” said Max Ohshima-Li, a UC Riverside senior who’s majoring in political science.
The National Labor Relations Board filed a complaint in December accusing Starbucks of closing six Los Angeles-area stores and 17 other locations nationwide in 2022 allegedly to suppress union organizing.
A Starbucks official rejected claims that the corporation was hostile to organizing.
“We respect our partners’ right to organize, freely associate, engage in lawful union activities and bargain collectively without fear of reprisal or retaliation — and remain committed to our stated aim of reaching ratified contracts for union-represented stores in 2024,” spokesperson Andrew Trull said in a statement.
Trull said Starbucks has engaged in negotiations with several labor organizations representing employees throughout North America, including the Teamsters and United Steelworkers. He acknowledged some difficulty in agreeing to a “format of bargaining” with Starbucks Workers United.
“We disagree with claims made that Starbucks engages in ‘union busting,’” he said.
He also said Starbucks offered robust benefits for student workers.
Trull said the average salary is $17.50 an hour for baristas, plus tips, along with full medical, dental and vision benefits for those working at least 20 hours a week. He said the business also offers free undergraduate degrees for employees who lodge 20 or more hours a week through a partnership with Arizona State University’s online program for first-time degree seekers.
At UCLA on Tuesday, about 15 students offered statements during an Associated Students of UCLA board meeting.
They then delivered a petition to ASUCLA Chief Executive Pouria Abbassi.
David Ramirez, a UCLA senior majoring in geography and environmental and labor studies, said Starbucks “doesn’t share UCLA’s values.”
“We demanded that UCLA cut any purchasing agreements with Starbucks and to remove any facilities off campus,” Ramirez said. “We can do better.”
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
Business
Monterey Park takes landmark vote on banning data centers
Residents in the city of Monterey Park will be the first in the nation to vote on a permanent ban on data centers Tuesday.
If approved, Measure NDC would prohibit data centers within the city limits and could only be overturned by another vote.
Yard signs saying “No Data Center” in English and Chinese with images of dragons line sidewalks in the San Gabriel Valley city.
As a wave of data center opposition sweeps the country, numerous towns and counties across the U.S. have instituted temporary moratoria and other restrictions on the facilities. But only a handful have instituted indefinite bans, and just four other towns have sent related matters to the ballot.
Supporters are hoping the vote will set a precedent for the rest of the region, where residents are fighting proposals in Vernon and City of Industry.
“This is about as permanent a ban as we can get,” said Steven Kung, co-founder of the group No Data Center Monterey Park. “Winning Measure NDC would send a huge message to the rest of the San Gabriel Valley about how residents don’t want data centers.”
The ballot measure emerged from the fight against a 247,000-square-foot center proposed in 2024 by the Australian-owned investment firm HMC StratCap for a residential area in Monterey Park.
The facility would have sat less than 500 feet away from the nearest home and used three times the electricity of the 60,000-person, predominantly Asian American city.
While the developer touted the potential for jobs and tax revenue, residents expressed concerns about noise and air pollution, rising electricity rates and a potential to lower property values.
The company pulled its plans in late March following public outcry and a March 4 city council vote to extend a temporary data center moratorium and place a ban on Tuesday’s ballot.
In a letter to the city council, HMC StratCap said it would pursue a different use for the land and would not engage in a ballot measure fight.
The city council later banned data centers indefinitely, the first in California to do so, said Mayor Elizabeth Yang. But she’s still been out campaigning for the measure with all four other council members.
“If a council puts in an ordinance, a future council can reverse it too,” said Yang. “With the ballot measure, unbanning it is a lot harder because you need the entire city to vote on it.”
The measure proposes the ban “to protect air quality, drinking water resources, and public health” and “prevent impacts to electricity and water rates.”
While California places third in the country for existing data centers with about 300 facilities, it hasn’t been a hot spot in the recent AI-driven data center boom. High electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in Virginia, Texas, Georgia, Illinois or Arizona.
“Most of California’s data centers are small by today’s standards,” said Shaolei Ren, an engineering professor at UC Riverside who studies how to reduce the environmental impacts of data centers. “Ten years ago, they would be medium-sized, but the power demand for new AI data centers has increased a lot.”
The average operating data center demands 45 megawatts, according to the Washington Post, while the average planned one would draw 430 MW. The one proposed for Monterey Park would have required about 50 MW at peak demand.
As proposals crop up in SoCal, they’re met with fierce opposition. Montebello, El Monte and Baldwin Park have all enacted temporary moratoria, and Alhambra recently banned data centers as part of a zoning code update. City of Industry, Vernon, City of Commerce and Santa Fe Springs are moving in the other direction, trying to court developers and streamline data center approvals. Community groups are fighting that.
Outside the San Gabriel Valley, residents of Coachella and Imperial County are showing up in droves to protest local proposals.
Matthew Shaw, a volunteer with the Coalition for Responsible Data Center Development, who recently published a report on opposition to AI data centers, said a vote to ban them in Monterey Park “would lead to copycats, partially because so many groups are just opposed to any data center development at all.”
While there is no formal opposition to Measure NDC, some building trades like Ironworker Local 433 supported the Monterey Park data center when it was still live before city council. Those in the data center industry are lamenting the state of public opinion.
“These are multi-billion-dollar assets that are built by multi-trillion-dollar companies. These things will get done,” said Mehdi Paryavi, chairman of the International Data Center Authority. “My biggest problem is that our industry does not invest enough in community engagement.”
Paryavi said towns that seek to limit data centers are missing out on thousands of jobs generated by data center construction, operations and customers, as well as faster artificial intelligence speeds and better performance.
Kung said local community organizers are “looking at the empirical evidence” and seeing a ban as a win.
“We’ve never seen a city that embraces a data center and is like, ‘Look how our quality of life has increased, look how all the revenue has gone into citywide improvements,’” he said. “That just doesn’t exist.”
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