Home Money & Business Business Starbucks employees are preparing to strike, potentially impacting hundreds of locations across the US by Christmas Eve.

Starbucks employees are preparing to strike, potentially impacting hundreds of locations across the US by Christmas Eve.

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Starbucks employees are preparing to strike, potentially impacting hundreds of locations across the US by Christmas Eve.

Workers at Starbucks locations are preparing to embark on a five-day strike, commencing this Friday, in response to the stagnation in contract discussions with the corporation.

The strike is set to initiate in major cities such as Los Angeles, Chicago, and Seattle, with the potential to expand to hundreds of other stores nationwide as Christmas approaches.

Starbucks Workers United, the union representing employees at 535 company-operated stores across the U.S. since 2021, has expressed frustration over Starbucks’ inability to fulfill a promise made in February about securing a labor agreement this year. Additionally, the union is pushing for the resolution of various legal issues, including numerous accusations of unfair labor practices lodged with the National Labor Relations Board.

The union pointed out that Brian Niccol, who became the new Chairman and CEO in September, stands to earn over $100 million within his first year. Meanwhile, according to the union, Starbucks recently proposed an economic package that offers no immediate wage increases for unionized baristas and only a modest 1.5% adjustment in the coming years.

“Union baristas recognize their worth and refuse to accept a proposal that does not treat them as true partners,” remarked Lynne Fox, the president of Workers United.

Starbucks, based in Seattle, stated that Workers United had prematurely concluded a negotiation session earlier this week. With nearly 10,000 company-owned locations in the U.S., Starbucks emphasized its eagerness to continue discussions and urged the union to return to the negotiations table.

The company highlighted that it currently provides compensation and benefits—including free college tuition and paid parental leave—that amount to approximately $30 an hour for baristas who work at least 20 hours each week.

This strike is not the first occurrence during the busy holiday season for Starbucks. Last November, thousands of employees at over 200 locations walked off the job on Red Cup Day, a significant event during which the company typically gives out thousands of reusable cups. Furthermore, in June 2023, hundreds of employees protested by striking after allegations arose about Starbucks prohibiting Pride displays at various locations.

Earlier this year, the union and the corporation had a more conciliatory tone, as both parties returned to the bargaining table with promises to secure an agreement. Starbucks has claimed to have conducted nine negotiation sessions with the union since April and has come to over 30 agreements with them.

Currently, however, it seems that both factions are at a deadlock.

“In a year where Starbucks has poured millions into acquiring top executive talent, it has neglected to present a reasonable economic proposal to the baristas who are the backbone of its operations,” stated Fatemeh Alhadjaboodi, a barista from Texas and a member of the bargaining team.