Peet's Coffee & Tea - Employee and Labor Relations

Employee and Labor Relations

With a significant population of part-time and relatively short-term employees, Peet’s, like Starbucks, was seen by economists and media sources as a model for the evolving service economy, notable for its extensive benefit plans for both full- and part-time salaried and hourly workers. By 2010, Peet's was offering health, dental and vision plans to part-time workers who had worked at least 500 hours, and were averaging over 21 -hour workweeks.

Peet's became a target for union organizing as early as 2002. At that time, workers at the Santa Cruz, California branch of Peet’s sought affiliation with the United Food and Commercial Workers International Union (UFCW) Local 839. In August 2003, after intensive anti-union lobbying by Peet’s Coffee & Tea, retail employees at Peet’s store 221 in Santa Cruz, CA, voted 11-6 against representation by the UFCWIU.

One consequence of that unionization effort and its failure was an increased media attention to Peet’s and its employee relations, primarily in the Bay Area. Articles based on interviews with retail employees pointed to increased dissatisfaction, especially after cuts in pay and benefits during the economic downturn, coupled with widespread reports of the corporation’s success in maintaining and expanding revenues and profits.

A significant factor in both profit-margin increases and employee turnover was the corporation’s implementation of worker-efficiency systems, including the use of task-timers, scripts for customer interaction, and a point system for disciplinary action over policy infractions. In response to employee complaints that Peet’s has steadily cut back on pay and benefits, while pushing employees to work faster and under unsafe conditions, a company spokesperson said, “We feel very comfortable that all our employees are treated fairly and with respect.”