Norway's $1.3 trillion wealth fund, one of the world's largest investors, will vote in favor of a shareholder motion calling on Starbucks (SBUX.O) to report on how it respects labor rights, the fund's manager said on Thursday.
The Norwegian fund owns 1.05% of Starbucks' shares, worth $1.2 billion at the end of 2022, according to fund data. It is the company's tenth-largest shareholder, according to Refinitiv Eikon. Starbucks is due to hold its annual meeting on Thursday.
Over the years, Schultz helped Starbucks build a reputation as a progressive employer, offering higher salaries and more benefits - including company stock and health insurance - than other restaurant chains.
But the company's response to a growing union campaign, as well some of Schultz's public comments, have been described by some critics, including some shareholders, as overly aggressive.
Norges Bank Investment Management (NBIM), which operates the Norwegian wealth fund, said it would vote in favor of commissioning a third-party assessment of Starbucks' commitment to freedom of association and collective bargaining rights.
In a separate opinion piece published on Thursday, NBIM's Chief Governance and Compliance Officer, Carine Smith Ihenacho, and Caroline Eriksen, a senior fund official, said NBIM had grown concerned over the issue.
"Freedom of association and the right to collective wage bargaining are fundamental employee rights - and human rights," they said.
Starbucks was not immediately available for comment.
Reuters