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What if unionization really made it unprofitable for Starbucks to operate?
by caskstrength 4y ago
What if unionization really made it unprofitable for Starbucks to operate?
- tchaffee 4y agoStarbucks profit for 2022 was $22 billion. A 7% increase over the prior year. That leaves loads of room for unions to negotiate higher salaries and better benefits before there is any risk of that happening. And unions tend to not drive companies out of business because then there is no need for the union anymore and no paychecks to take union fees from.
- caskstrength 4y agoI would assume they didn't made all those billions by running unprofitable shops, didn't they?
- tchaffee 4y agoThe shops are obviously highly profitable. Which is my point. More of that profit could be shared with the workers who generate it. And they would still be profitable. Your scary "unprofitable" is not in sight even after significant raises to workers.
- caskstrength 4y agoHow do you know any of that? Just throwing the word "obvious" in there doesn't make an argument.
- tchaffee 4y agoIt's in their annual and quarterly reports where their profit comes from. They run highly profitable coffee stores around the world.
- caskstrength 4y ago... and in order to do that they must sometimes close unprofitable ones.
- tchaffee 4y agoYes, they have always done that. What's your point?
- newswasboring 4y agoThen they need to be better at business. In american people are not unionizing to slack off, most of them just want better working conditions. If you're company cannot operate without exploiting people, maybe its time to change the business model.
- caskstrength 4y agoIt seems like did change the business model - they decided to close shops in unprofitable locations.
- tchaffee 4y agoThat's always been part of their business model. What they didn't do - because it's illegal - is close shops because they unionized.
- newswasboring 4y agoI hope you are joking because this is the worst take I've seen in forever on this topic. It doesn't even address my original point. If the only profitable Starbucks outlet is the ones with bad working conditions then perhaps they shouldn't exist.
- cercatrova 4y agoYou seem to be moralizing them, eg "then perhaps they shouldn't exist," "maybe its time to change the business model", etc. You said "then they need to be better at business" and when they changed their business model to be "better at business" by closing unprofitable stores, it's like you said, "no, not like that" as it sounds like you don't like how they took your advice. The fact is closing unprofitable branches is how many companies make money, they don't run a charity after all.
- newswasboring 4y agoYou again don't engage with my point. If the only profitable stores are exploitative why would society tolerate this? This is not a market issue, it is indeed a moral issue.