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The Starbucks Paradox
By Kim Fellner, ColorLines
April 27, 2004

It was November 1999 in Seattle and the U.S. global justice movement
had taken to the streets. Suddenly, there was a crash not 20 feet
from where I stood, and the Starbucks window collapsed in a hail of
glass. "Zowie," I said to my husband Alec, "I sure hate the WTO and
capitalism, but that's our coffee store."

I've been pondering the contradictions ever since, watching my
progressive colleagues devour the latest episode of Friends,
gleefully shop for real estate, and sip their lattes. Political
ideology notwithstanding, we were avid participants in popular
culture and petty capital. How could we so glibly demonize that which
we so cheerfully consumed?

And as I went around the country, I couldn't help notice that both
the employees and habitues of Starbucks seemed far more diverse by
race and class than the American anti-globalization movement. I
wanted to know, was big, by definition, bad? Was Starbucks' touted
commitment to "values" just a cynical ploy to complement its branding
and market share?

Few people argued that coffee was inherently evil like bombs or SUVs.
Rather, Starbucks stood accused of: buying coffee at prices that
couldn't sustain the farmers; purchasing from farms that degraded the
environment; causing neighborhoods to gentrify and small cafes to
wither; and representing the mega-branding that's killing small
businesses and homogenizing the world.

I frankly like having Starbucks at the airport, and at strip malls in
strange cities. I wouldn't mind independently-owned coffee shops
instead, but Starbucks is usually what's there. Moreover,
progressives have tended to romanticize small businesses; yet many
sweatshops in this country have been small, family-owned enterprises,
and that didn't benefit those who worked there. As a rule, racial
minorities have fared better in larger institutions. Was Starbucks
doing right by race? What about class and politics?

What, specifically, is wrong with this emblematic corporation? And is
anything right? It seems to me that the movement is old enough to
make some distinctions.

The View from Headquarters

The mermaid from the Starbucks logo peers coyly from the top of the
refurbished Sears warehouse in Seattle that serves as company
headquarters. Although one union official claims this is cultishness
gone amok, I can't help seeing it as a humorous and engaging design
feature.

The people I meet are also humorous and engaging. They include Paula
Boggs, executive vice president, general counsel and secretary; Wanda
Herndon, senior VP, Worldwide Public Affairs; David Pace, executive
VP, Partner Resources; and Sandra Taylor, senior VP, Corporate Social
Responsibility. While they are polished spokespeople for the
Starbucks mission and policies, they don't really strike me as cult
material. What does strike me is that three of the four are African
American women. Women comprise barely 13 percent of Fortune 500
general counsel and women of color merely 1.6 percent of all
corporate officer positions. At Starbucks, more than 34 percent of
the top officers (vice president or higher) are women and/or people
of color. And although Starbucks is cagey about its statistics,
they're clearly far ahead of the miserable norm. "Certainly, at the
top of this company, diversity in the form of race rings loud," says
Boggs, the general counsel. "I would think, fairly, we have some work
to do when it comes to middle management, but we're on the right
path. "

"You will see diversity by age, sex, race, sexual orientation, family
status throughout the organization," David Pace asserts. "It holds an
equal place in our guiding principles, just like respect and dignity,
just like customer satisfaction."

Those principles are spelled out in the company's six-point mission
statement, which is central to the way the company defines itself and
acculturates its employees. Yet Pace is aware that, "Our guiding
statement is probably not that different from people who are involved
in scandals. The difference is the commitment to it."

Making Good on Eighth Street

Tawana Green, a lively 28-year-old African American, Washington, DC
native with unruly dreads, believes in the Starbucks mission. She
started with the company the same year as the Seattle protests and
now, four years later, is the manager of the new Starbucks on SE
Eighth Street, two blocks from my home on Capitol Hill.

It's the opportunity Green was looking for. "I've been on my own
since I was 17," she relates, "and started work right out of high
school. I did the office thing, but found myself sleeping at the
computer. So I went into retail where I could work with people."

She was impressed by the full benefits for anyone working 20 hours or
more, almost unheard of in the world of retail. In addition to a
generous health, life, and disability insurance package, the company
offers: a 401K with a match; Starbucks "bean stock," which reflects
the annual success of the company and is allocated among employees
based on hours worked; discounts on Starbucks public stock; and to
top it off, a free pound of coffee every week.

She has hired a total of 15 workers, and all but one survived the
first month. Visiting on different shifts, it's clear that she has
assembled mostly people of color from the community; they start at
$7.50 an hour plus tips, and most of them work enough hours to
qualify for the health benefits. Although some Starbucks workers
claim they have a difficult time getting those hours, the company
says that more than two-thirds of all employees qualify.

As I listen to Green and take in the familiar decor, the comfortable
chairs and small merchandise displays, I find myself thinking about
what journalist/activist Naomi Klein describes as the branding
phenomenon, where what's on sale is not just a product but an image
and a lifestyle: not just coffee, but "The Starbucks Experience."
Klein hates the clone-like nature of the stores and what she sees as
the cynical manipulation of the consumer. And I honestly know what
she means. Starbucks is putting in a bid to be a Pleasantville
version of the village square.

Then I look at Green, her co-workers, and the customers, and it
doesn't look like such a terrible thing. "My goal is to provide a
great place to hang out and also give back to the community," Tawana
Green tells me. "I'm not saying it's easy. But here I am, 28, with a
high school education, and I'm a store manager with a piece of the
company. Where else could I get this opportunity? It doesn't get much
better than this!"

Uniform Misery

However, for Sandra Evans, an employee at Cintas - the mega-company
producing uniforms, laundry, and cleaning supply products with which
Starbucks contracts - it doesn't get much worse. Evans, a 57-year-old
African American, works 40 hours a week sorting shirts at the Cintas
plant in Aspen, Pennsylvania. She also works 20 hours at the local K-
Mart. "I've got two jobs, and I'm still struggling," she wryly
notes. "This company is making millions, and people can't even pay
their electric bills." She loves to walk, entertain, and cook,
but "I'm just too busy working." And while she drinks a cup of coffee
a day, she's never had a Starbucks, "although I hear they're
excellent."

Driven by grievances of unpaid and forced overtime, discrimination
and unsafe working conditions, she and her fellow workers are engaged
in a campaign to join UNITE, the Union of Needletrades, Industrial
and Textile Employees. Evans is also among a group of workers who
recently filed an EEOC class action complaint against Cintas for
gender and race discrimination. "When I got hired two years ago, they
told me $8.50 was the starting rate. Then they hired an 18-year-old
white girl, right out of high school, and started her at $9.50.
Recently a Hispanic woman started, and they're paying her $8.25."
Evans reports there's only one black supervisor at her plant; at
another plant, they do not hire any blacks as drivers, even if they
are well-qualified, and some plants are stratified by gender as well.

"It's a sad situation," Evans sighs. "I just hope they can be a fair
company, hire people at the same rate, and a decent rate, and give
people of color a chance to move up. It's not just about me, and it's
not just about money. It's about finally treating people with
respect."

Voice vs. Vote

"I've met Howard twice," Tawana Green tells me, easily referring to
Starbucks board chair Howard Schultz. At a company leadership
conference, "he told us, 'we take care of the partners, the partners
take care of the customers, and the customers take care of the
business.'"

Green avoids the word "employees" in favor of the company
lexicon, "partners," and quickly corrects herself the one time the e-
word slips in. However, a number of Starbucks workers in Canada and
the U.S. have begged to differ on the partner/employee question.

Jef Keighley, a national representative for the Canadian Automobile
Workers, is bitter when he describes his experiences organizing
Starbucks in British Columbia, where the union is in a drawn-out
contract negotiation covering 10 Vancouver stores. "We used to have
12 stores," he says, "but the company has had a hand in organizing
decertifications at two of those stores, even selecting and paying
for the lawyer. We've been at the Labor Board for a year and a half."

Keighley admires Starbucks' tactical and PR sophistication, but
dismisses any sincerity around the mission statement as "an absolute
crock." He's particularly exercised about the bean stock
benefit. "Most would be better off with the money in their
paychecks," he asserts. "Our committee knows they're only getting the
sizzle while Starbucks keeps the steak."

In his own book, Howard Schultz - a Brooklyn boy made good - clearly
expresses a belief that benevolent management should make unions
superfluous. It's almost as though the desire to have outside
representation is seen as a personal affront that hurts Schultz's
feelings more than his profit margins.

UNITE says it has yet to hear from Starbucks about Cintas. But
Starbucks General Counsel Paula Boggs insists that, "We take any
allegation regarding our suppliers very seriously. We have instituted
a supplier code of conduct, and we do look for partners that share
our values. Is it perfect, always? No. But it's certainly worked in
the main for us."

Bringing It All Back Home

So, what about the most common grievances against Starbucks?

A crucial concern on the global level has been the survival of coffee
farmers and the environmental sustainability of production. Coffee is
second only to petroleum on the world commodities market, and the
price is at catastrophic lows of 40 to 50 cents per pound,
threatening roughly 250 million small farmers. There seems little
question that pressure from human rights and environmental groups in
the mid-'90s spurred Starbucks' commitments in Third World coffee-
growing countries. They instituted coffee-sourcing guidelines, and
have negotiated long-term contracts and created direct relationships
with suppliers to stabilize the income of the farmers. In 2002, they
paid an average of $1.20 per pound up to a high of about $1.41. Steve
Coats of the US/Labor and Education in the Americas Project (US/LEAP)
suggests that, "They don't move any faster than you push them. They
may purchase only 1 percent of the coffee, but they can set the
standards and tone." However, both US/LEAP and Global Exchange
acknowledge that Starbucks has made significant changes in its
policies and practices.

There is also a pervasive belief that Starbucks is driving out the
independents, but evidence is slim. As I recall, in the distant past
of 15 years ago, most coffeehouses were near universities and in
Italian neighborhoods. Cheap coffee was found at the local diner, and
good coffee was an oxymoron. Are we really saying that there should
be no coffeehouses in urban communities of color? Are we arguing
against a decent latte at the airport? It may be an unnecessary
luxury. But a sign of evil conspiracy? I'm not convinced.

Nor is Starbucks equivalent to Wal-Mart; it has not forced a downward
spiral in either prices or wages, it is arguably the best employer in
its sector, and it has not turned old main streets into ghost towns.
However, Starbucks has joined McDonalds and Wal-Mart in hyper-
aggressive expansion, especially abroad, thus setting itself up as a
symbol of the Americanization of the world.

At the community level, though, it's often hard for people to
understand why the store where they shop and work has been
targeted. "I remember being in a demonstration where a McDonalds or
Starbucks window, I forget which, was shattered," says Colin Rajah, a
long-time global justice organizer, currently a program associate at
the National Network of Immigrant and Refugee Rights. "We could see
the staff, people of color, running toward the back of the store and
cowering behind the counter, really scared. I was in a group of young
global justice activists of color, and we immediately found ourselves
identifying with the people inside the store. And we realized that
tactic was a mistake.

"Sure we have to look at the larger picture and how the capitalist
system works, but if these entities provide a service to the
community, and are not abusing their workers, there's something to be
said for that as well. What we should be looking for is the
democratization of the process."

I couldn't really get an answer at Starbucks headquarters on how big
was too big. "I guess too big is all relative," says Starbucks VP
Wanda Herndon, "but big is not necessarily bad if you're doing good
things." Mostly, she feels misunderstood by the protesters, who have
continued to sporadically damage stores around the country. "The way
I felt was that the people who were protesting didn't understand who
Starbucks really is, the company, the culture, the people," she
explains. "But because our siren makes good news, we became a symbol
of all that went wrong with WTO.

"We've always tried to balance profitability with benevolence, and I
think that's a concept that's hard for people to grasp. You want to
be profitable, but you realize you need to give back if you want to
be a part of the communities in which you do business."

As it turns out, Starbucks appears improved on trade, good on race,
and a model on health care for part-timers. Amazingly, they have only
recently acquired their first government relations staffer, and it
remains to be seen whether they will parlay their position into
fighting nationally for civil rights, the environment, or national
health care.

"People who go into corporate management didn't sign up to be civil
servants," notes global justice organizer Liz Butler. "But
increasingly, the crucial decisions are being made in board rooms,
and we need them to take on that role."

And, at Starbucks, there's some hope of getting through; after all,
some of the top management were the anti-war activists of the '70s.
Meanwhile, I'm certain that Tawana Green would care about the fate of
Sandra Evans, though I wonder whether the company VP's will feel the
same. I'm not holding my breath that they'll ever prefer union
representation to benevolence. But I'd like to think that they will
not be down with the race and gender discrimination of a Cintas.

As Liz Butler puts it, "McDonald's never says it's a good neighbor,
but Starbucks does. It's our job to hold them to it." Perhaps then
Starbucks won't be doing business with Sandra Evans' oppressor, and
activists won't be throwing bricks through Tawana Green's window.

Kim Fellner is a long-time union and community organizer off on
a "year of writing dangerously."



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DECLARATION & DISCLAIMER
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major and minor effects spread throughout the spectrum of time and thought.
That being said, CTRLgives no endorsement to the validity of posts, and
always suggests to readers; be wary of what you read. CTRL gives no
credence to Holocaust denial and nazi's need not apply.

Let us please be civil and as always, Caveat Lector.
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