From Slough to Seattle: the challenges facing Starbucks’ new boss

theguardian.com:

When Reckitt Benckiser announced the surprise departure of its chief executive, Laxman Narasimhan, on Thursday, the Durex to Dettol maker cited “personal and family reasons”.

Those reasons became clear a few hours later: Narasimhan is swapping the Reckitt office in Slough for a perch in Seattle as he joins the Starbucks chain.

In a statement, Howard Schultz, the billionaire who built Starbucks into a global empire, praised Narasimhan’s “passion of investing in humanity”.

That passion is to be tested, as Starbucks faces a widespread unionisation drive at home even as it seeks reinvigorating growth abroad.

Starbucks Workers United says it has unionised 230 stores, with a further 90 having filed to hold elections. The group complains that workers’ interests are put behind shareholders’ and says they are “understaffed, overextended, exhausted and burnt-out”.

The company denies using delaying tactics, despite the fact that only three stores have so far started negotiations with unions over new terms.

A US judge last month told Starbucks to reinstate seven staff in Memphis, Tennessee, who were allegedly fired for union activities – the company denied the allegations and said it would appeal. Starbucks has also accused US federal officials of interfering in workers’ favour.

It will be a fresh challenge for Narasimhan, who did not face significant labour relations problems during his three-year tenure at Reckitt. Starbucks said he would spend part of the first few months on the job meeting “partners” – Starbucks’ word for employees – from around the world.

Schultz, who grew the chain from 11 stores to more than 28,000, stepped in as interim chief executive in April after his hand-picked successor retired. He has already set a new