Workers at Starbucks locations initiated a five-day strike on Friday, driven by frustrations over stalled contract negotiations with the company.
The protests, primarily involving baristas and other personnel, are being held in major cities like Los Angeles, Chicago, and Seattle, and there are concerns that the movement could extend to several other locations nationwide before Christmas Eve. According to Starbucks Workers United, the union representing Starbucks employees, at least ten stores were reported closed by midday on Friday.
This strike was launched shortly after the Teamsters union declared walkouts at seven Amazon delivery sites.
In response to the strikes, Starbucks asserted that there was “no significant impact” on its operations. The Seattle-based coffee chain stated, “While we are aware of some disruptions at a few locations, the vast majority of our U.S. stores remain operational and continue to serve customers as usual.”
Though workers at 535 company-owned stores across the United States have opted to unionize, Starbucks actually operates close to 10,000 company-owned locations.
Starbucks Workers United, which started its unionization campaign in 2021, claims that the company has not honored a pledge made in February to finalize a labor agreement this year. The union is also pushing for the resolution of various legal issues, which includes numerous unfair labor practice allegations filed with the National Labor Relations Board.
The union highlighted that Starbucks Chairman and CEO Brian Niccol, who took over in September, could earn upwards of $100 million in his first year. However, the company recently proposed a financial package that would not provide new wage increases for unionized baristas in the present and only a 1.5% increase in the coming years.
“Union baristas recognize their worth and will not accept a proposal that fails to acknowledge them as genuine partners,” stated Lynne Fox, President of Starbucks Workers United.
Starbucks, on the other hand, contends that Workers United prematurely ended a recent bargaining session.
“We are prepared to resume negotiations to reach agreements. The union needs to come back to the table,” the company affirmed in a statement.
Presently, discussions are concentrated on wage increases. Starbucks expressed its commitment to implement an annual pay rise of at least 1.5% for unionized employees, ensuring that if non-union workers receive a lower increase in any specific year, union members will still receive the 1.5% raise.
The union is advocating a dramatic increase of 64% to the minimum wage for hourly workers immediately, followed by a 77% raise over a three-year contract.
Starbucks claims to already offer an average hourly wage of $18, with additional benefits—including health care, complimentary college tuition, and paid family leave—resulting in an average pay package of $30 per hour for baristas working at least 20 hours a week.
These strikes aren’t the first for Starbucks during the holiday shopping season. In November 2023, thousands of workers staged a walkout on Red Cup Day, a day when the company typically distributes many reusable cups. In June of the same year, hundreds of employees also protested against the alleged ban on Pride displays in some locations.
Earlier this year, there were signs of cooperation between the company and the union as they resumed bargaining with intentions of reaching an agreement. Since April, Starbucks reported that it has participated in nine bargaining sessions and has come to over 30 accords with the union.
Nevertheless, the company has been facing challenges with declining sales and reduced customer traffic both in the U.S. and internationally this year. Following the summer departure of the CEO who had promised to negotiate a labor agreement, Laxman Narasimhan, Niccol—who previously sought to eliminate a unionization effort at Chipotle during his tenure there—committed in a letter to a collaborative working relationship with the union.
At this moment, it seems that Starbucks and the union are at an impasse.
“In a year in which Starbucks has invested millions into top executive talent, it has neglected to provide the baristas who drive the business with a reasonable financial proposal,” Fatemeh Alhadjaboodi, a barista from Texas and a member of the bargaining team, remarked.
In afternoon trading, Starbucks shares experienced a 1% decrease.