A five-day strike initiated by baristas at Starbucks has led to the closure of 59 locations as of Monday afternoon, as reported by the union representing the employees.
The strike commenced on Friday in major cities including Los Angeles, Chicago, and Seattle, and by Monday had extended to Boston, Dallas, and Portland, Oregon. Over the weekend, workers from cities like New York, Denver, and Pittsburgh joined the movement as well.
The protesting employees are voicing their concerns over stalled contract negotiations with the coffee giant. Starbucks Workers United, the organization that initiated the unionization process in 2021, claims that Starbucks has not fulfilled its promise made in February to finalize a labor agreement this year.
Additionally, the union seeks to address unresolved legal matters, including numerous unfair labor practice allegations that workers have lodged with the National Labor Relations Board. Since the union’s inception, baristas from 535 company-owned Starbucks outlets across the U.S. have voted to join the union.
This labor action coincides with one of Starbucks’ busiest seasons, yet the company stated on Monday that the strike has had “no significant impact” on their store operations. Starbucks operates approximately 10,000 company-owned outlets in the country.
“We respect our partners’ right to engage in lawful strike activity, and we appreciate the thousands of partners across the country who are continuing to support each other and deliver the Starbucks experience for our customers,” the company stated on Monday.
Negotiations between the two parties have been ongoing since spring, but they appear to have hit a deadlock over financial matters. Starbucks has reportedly pledged to provide annual pay increases of 1.5% or more for unionized staff. The company assured that if non-union employees received a lower increase in any year, unionized workers would still get their 1.5% raise.
According to Starbucks, baristas in the U.S. earn an average hourly wage of $18. Including benefits such as healthcare, paid family leave, and tuition assistance, the overall compensation package is valued at roughly $30 per hour for baristas working at least 20 hours each week.
However, employees assert that they are entitled to higher compensation, highlighting that Brian Niccol, the new Chairman and CEO who took office in September, could potentially earn over $100 million in his inaugural year.
