Starbucks Korea workers form first union after promotion controversy

Workers at Starbucks Korea have formed a labor union, the company confirmed Sunday, after a marketing controversy linked to memories of a 1980 crackdown on pro-democracy activists.

Starbucks Korea, described in the report as the coffee chain's third-largest market after the United States and China, drew criticism over a reusable cup promotion called “Tank Day” on May 18. The date was the 46th anniversary of the Gwangju uprising, in which 165 civilians were killed according to the official toll.

The controversy led to the resignation of Starbucks Korea's chief executive. It also led to early closures at more than 2,000 stores nationwide last month for staff education sessions about the historical significance of the uprising.

In a statement posted Thursday on the website of the Korean Federation of Chemical, Textile and Food Workers' Unions, the new union said workers had decided to unionize to protect their rights and work with sincerity and pride. It said the company had ignored repeated demands for better workplace conditions, including protest messages displayed on trucks, and had instead introduced more burdensome promotional events.

The union statement did not mention the Tank Day promotion.

A Starbucks Korea official said Sunday that the company would continue to engage with the union in line with relevant laws and regulations. The official did not say how many workers had joined.

Starbucks Korea employs about 23,000 people. The union is the first of its kind at Starbucks Korea since the chain launched in the country in 1999.

The operator said the Tank Day controversy caused a sharp decline in sales in the early days of the scandal. The report also said that only a small share of company-operated Starbucks stores in the United States are unionized and represented by Starbucks Workers United.