1. Abstract
Starbucks and McDonald’s are very famous companies based in the United States. The workers working in these companies are many. The workers of these companies want to build a workers’ union for their rights.
Some of the Starbucks workers have built their own workers’ union. It is called as “Starbucks Workers United.” But it is difficult for the workers working in McDonald’s. Because McDonald’s has many stores, and every store has different store owners.
And it is difficult that every store owner will recognise these workers’ union.
In India, workers working in these companies are just temporary. So making worker’s union is very difficult for the workers.
2. Introduction
As we know that in old time workers were treated as machines. Bosses of business only gave importance to the work done by the workers.
Sometimes they have to work for more than fourteen hours in the factories. Workers did not have any rights. They have to work as per their boss’s command.
Trade Union And Labour Union
A trade union or labour union is an organisation of workers who join together to protect their rights and improve their working conditions.
The main goal of these type of trade union is help workers to get:
- Better wages as per their work
- Safe work environment
- Job security
The laws for these type of labour union is different in different countries.
Union Recognition And Multinational Companies
There are certain rights held by the companies whether they want to recognise worker’s union or not.
Because in every country rules and rights for unionisation is different.
Gig Economy And Worker Unionisation
The gig economy is a labour market where people do temporary, flexible jobs instead of working as full time employees for one company.
Examples include:
- Delivery drivers
- Swiggy employees
- Zomato employees
- Home services providers
3. Trade Union Recognition
United States
The trade union recognition is the legal process by which a labour union becomes the official and exclusive bargaining representative for a group of employees.
This process is generally governed by the National Labour Relations Act, 1935.
National Labour Relations Board Secret Ballot Election
When employer does not recognise the union automatically then this method is used.
Workers first collect signed “Union Authorization Card” or a petition of at least 30% of the eligible employees in a specific workgroup of organisation.
Majority Support And Voluntary Recognition
But when majority of workers wants representation then there is not always necessary to conduct election.
Coverage Under The National Labour Relations Act
The standard National Labour Relations Act recognition rules applies to the private sector workers in United States.
India
The registration of union is handled by the registrar of the Trade unions under the Trade unions act, 1926.
Registration gives these unions legal identity.
There are two types of recognition:
- Voluntary recognition
- Statutory recognition
Rights Of Registered Trade Unions In India
- The trade unions have permanent succession and a common seal.
- The registered trade union can acquire, hold and dispose of moveable and immovable properties.
- The registered trade union can enter into contracts in its own name.
- The registered trade union can sue and be sued in its own name.
4. Different Situation Of Trade Unions In United States And India
United States Scenario
In the United States, the fast food industry is progressing rapidly.
Workers working in these types of industries have been fighting for their rights to form a trade union for many years.
Indian Scenario
In India, fast food industries are growing very fast but the situation in Indian context is very different.
Because in India there is non-existence of workers’ union.
5. Comparative Points / Lessons For United States And India
How Trade Union Works
In United States, trade unions fight against the corporate rules directly.
But in India trade unions are usually tied to political parties.
Acts And Laws
In United States, there is particularly law for the worker’s union which is National Labour Relations Act.
And in India, according to new labour codes there is a specific code for workers’ union which is “Industrial Relations Code”.
McDonald’s Or Starbucks Situation
In United States, McDonald’s and Starbucks have faced massive strikes against them.
But in India we can hardly see any worker’s union made for any demand.
6. Rights Of Workers
In United States
Wages For Overtime
If any worker works more than forty hours in a week then the company must pay 1.5 time more wages than their regular hourly wages for the extra hours workers by the workers.
Minimum Wage Rates
Companies must pay the minimum amount of wages mentioned in the National Labour Relations Act to their workers.
Joining Each Other
Every worker has right to join any trade union.
Safety And Security
Some companies have kitchen in their premises. And in kitchen there are very risky things like hot oil, sharp tools and slippery floors.
So to prevent any injuries, employer should provide safety kits and training to the workers.
In India
Wages For Overtime
If any worker works more than his usual working hour, then employer should give him double wage rate than the usual wage rate.
Working Hour Limit
Employer cannot force employees or workers to work for more than eight to nine hours.
Workers or employer can work for maximum forty-eight hours in a week.
Weekly Off
Every worker and employees should get one day paid leave in every week.
Safety At Workplace
Employer should provide safety kits and training to the workers and employees.
7. Types Of Labour Union
Craft Union
Craft union is a union in which workers make their union on the basis of their special skills.
Examples: Union of carpenters, union of electricians, etc.
Industrial Union
Industrial Union is a union in which workers and employees of a particular Industry make a group even if they have different skills and knowledge.
General Union
General Union is the union in which all the workers and employees of any industry make their own union even if they have different working background.
Enterprise Union
Enterprise union is a union in which workers and employees of a particular organisation or company makes a Labour union.
Professional Union
Professional Union is the union in which employees having college degree, Special licence are making their own union to get their rights.
8. Levels Of Trade Unions
Enterprise Or Workplace Level
An enterprise or workplace level trade union operates inside one single company or workplace.
Industry Level
At Industry level the trade union is made and operated by the workers and employees of the same industry.
National Level
At the National level there is one trade union for every types of workers and employees.
The International Level
At international level the national level union comes together to discuss the problem faced by the whole world.
9. Case Study Of Starbucks Vs. NLRB
It is a case involving Starbucks and their worker’s union.
Issue
Starbucks have make statements about unionisation.
So did it violate employee’s rights under National Labour Relations Act or not?
The major issues included:
- Starbucks have threatened their workers that they will lose benefits if they unionize.
- Starbucks have reduced the store working hour because of the union.
- Starbucks have closed the hiring portal of the company because of the union.
- Starbucks was alleged to be watching their union activities.
Rule
There mainly three rules mentioned in National Labour Relations Act:
- Section 8(c)
- Section 8(a)(1)
- Section 7
Application
The case then examines each issue separately, including statements concerning employee benefits, store working hours, the hiring portal and alleged monitoring of union activities.
10. The United States Landscape: Frontline Employees
Frontline employee means the worker who is the direct link between the organisation and the customer.
| Sector | Examples Of Frontline Employees |
|---|---|
| Healthcare Sector | Nurses, Care workers and medical assistants |
| Logistics | Bus drivers, delivery drivers, postal workers |
| Support And Services | Call centre workers, bank teller, customer service agents |
| Hospitality And Retail | Waiters, baristas, cashier, receptionist |
| Education And Safety | Teachers, firefighter, police |
Many years ago unions were losing in United States. But in present time these unions are rebirthing or making comebacks.
11. In Context Of Indian Landscape
There is less possibility of making of union in India.
As we know that workers working in these organisations are mostly college students and migrated persons.
But now there are gig workers who are forming their own trade union for gig workers.
12. Findings And Conclusion
To conclude, there are many trade unions in the United States, while there are rarely any trade unions in India.
There are certain rights of the workers working in an organisation. Every employee and worker should get their rights.
Trade unions have to face many problems nowadays.
The article also discusses:
- Multiple unionism
- Political interference
- Low membership
- Leadership problems
13. References
- Industrial Relation Code, 2020 — Ministry Of Labour And Employment
- Corporate Culture At McDonald’s
- Rights Of McDonald’s For Unionisation In US — Google Scholar
- Case Study: Starbucks Corporation Vs. National Labour Relation Board — Justia Law
- Wikipedia — Starbucks Unions
- Wikipedia — McDonald’s Unions
- Research Paper — No Contract No Coffee
- Research Article Of Starbucks — Starbucks Unionisation

