The U.S. Supreme Court justices seemed to indicate support for Starbucks Corp (SBUX) in a legal battle over the reinstatement of seven workers at a Memphis cafe who were terminated after they pursued unionization. The coffee chain contested the move, and the justices heard arguments in Starbucks’ appeal against a lower court’s ruling that favored the U.S. National Labor Relations Board (NLRB), which had ordered the reinstatement of the terminated employees.
The case centers around the legal standard for issuing a preliminary injunction under the National Labor Relations Act. Starbucks argues for a stricter evaluation, while the NLRB takes a different stance, as reported by Reuters. Some justices appeared to agree that the courts, not the NLRB, should have the primary role in determining the likelihood of success in a case before an injunction is issued.
Starbucks claims that a more stringent evaluation by lower courts would have resulted in a different outcome in this case, highlighting discrepancies in the application of legal standards. Amidst accusations of unfair labor practices from both sides, about 400 Starbucks locations in the U.S. have unionized, involving over 10,000 employees. The Supreme Court is expected to issue its verdict on the case by the end of June.
