Starbucks has been in a bit of a pickle recently. Over the past year or so, union activity at American company-owned locations has never been higher, and the company appears to be doing everything in its power to stem the tide. With public approval of unions higher than it has been in nearly 60 years, the company’s alleged work-stopping tactics may not be viewed so favorably by their customers. So what should the global coffee giant do? If recent news is any indication, NFTs! They are cool and popular and will certainly make you forget all about their union de-incentive practices of questionable legality.
It’s a two-part Starbucks today. First up: trade unions. Less than a month after the National Labor Relations Board sided with Starbucks Workers United, alleging that the coffee company “unlawfully withheld wages and benefits from thousands of unionized baristas,” Starbucks is redoubling its efforts and continuing to extend benefits exclusively to non-union workers. As reported by Reuters, the Seattle-based coffee chain announced on Monday, Sept. 12, an enhanced benefits package including “student loan repayment tools and a savings account program for all non-union U.S. employees.”
Announced ahead of their annual investor day the following day, the company maintains it is not allowed to offer the benefits to union workers without engaging in collective bargaining first. Earlier, Starbucks Workers United waived its right to bargain collectively for the increased benefits package that included wage increases, faster sick time accrual and medical travel reimbursement for employees seeking abortions or gender-affirming care, saying Starbucks was free to provide those benefits to both unions and non-unions – trade unions. The company has yet to offer the enhanced benefits to union workers, prompting the complaint filed with the NLRB.
And according to an analyst at BTIG, a global financial services firm, Starbucks’ gambit is paying off. The wage increases have a negative effect on union activity, and the number of new stores seeking a union vote falls to its lowest level all year.
It won’t be until October that an administrative law judge will hear the NLRB complaint and decide whether it is legal to withhold benefits from union workers.
Meanwhile, as public perception of the brand may change due to their very public dispute with unions, Starbucks is seeking to retain customers with an exciting new loyalty program. And what is more exciting than NFTs! That is correct, NFTsnon-fungible tokens, JPEG files you cannot copy (but you really can).
On Monday, the company announced Starbucks Odyssey, a “revolutionary web3 experience” to boost its loyalty program. According to the announcement, Starbucks Rewards members as well as US employees will be able to “earn and purchase digital collectibles” that will give them access to new benefits and “immersive coffee experiences.” With Odyssey, users will be able to go on a series of “journeys” — “play interactive games or take on fun challenges to deepen their knowledge of coffee and Starbucks” — which, when completed, will earn them a “digital collector’s trip” stamp. ‘” Or, you know, an NFT.
Of course, you can also use real money to buy “limited edition stamps” via a built-in Odyssey marketplace, where users can also sell or trade their stamps. Each stamp has a point value based on rarity, and the more points a member has, the more “access to unique benefits and experiences” become available, including virtual espresso martini-making classes, merchandise or even invitations to exclusive “trips to Starbucks “Hacienda Alsacia coffee farm in Costa Rica.”
To drum up excitement and create a sense of exclusivity, Starbucks has created a waiting list for anyone who wants to take part in this Odyssey.
Union busting and NFTs, two very good ideas that history will surely look back on.
Zac Cadwalader is managing editor at Sprudge Media Network and a staff writer based in Dallas. Read more Zac Cadwalader at Sprudge.
