Starbucks workers in South Korea have unionized
What's the story
Starbucks Korea, the third-largest market for the global coffee giant after the US and China, has seen its workers form a labor union. The move comes in light of a major marketing blunder that reminded many of a 1980 government crackdown on pro-democracy activists. The incident led to the resignation of Starbucks Korea's CEO and forced over 2,000 stores nationwide to shut down early for employee education sessions on the historical significance of the uprising last month.
Union formation
Union says it tried to engage with Starbucks Korea
In a statement on the website of the Korean Federation of Chemical, Textile and Food Workers' Unions, the newly formed group announced their decision to unionize.
They said they wanted to "protect" their rights and "work with sincerity and pride."
The union also claimed that despite repeated requests for better working conditions, Starbucks Korea had "ultimately ignored partners' demands."
Company stance
What the company has to say
A Starbucks Korea official told AFP that the company will "continue to engage with the labor union in accordance with the relevant laws and regulations."
The newly formed labor union is a first for Starbucks Korea since it opened its doors in 1999.
The company employs some 23,000 people across its stores.
Sales impact
Significance of the new labor union
The so-called Tank Day controversy led to a "sharp decline in sales" in the early days of the scandal, according to the operator.
In the US, only a small proportion of company-operated stores are unionized and are represented by Starbucks Workers United.
The formation of this new labor union at Starbucks Korea marks a significant development in the company's labor relations history.