When the employee highlighted the benefits of unionization and alleged unfair labor practices, Schultz responded with a remark perceived as a threat: “If you’re not happy at Starbucks, you can go work for another company.” Due to its coercive nature, the National Labor Relations Board (NLRB) later deemed this statement a violation of federal labor law.

The NLRB’s decision, issued on Wednesday, reflects the ongoing tensions between Starbucks and organized labor as more stores unionize. While Starbucks has faced numerous allegations of union-busting tactics, the company has continued emphasizing its focus on “respecting partners’ rights to organize.”

This case is part of a more extensive labor dispute history, including a recent Supreme Court decision in favor of Starbucks regarding seven employees who were fired after attempting to unionize. Despite these challenges, unionization efforts persist, with over 500 Starbucks locations having unionized as of October 2023.

Starbucks has expressed disagreement with the NLRB’s findings but remains engaged in discussions with labor groups, signaling a continued push to resolve these issues.