Starbucks Barista Strike Expands to 5,000 Workers Demanding Pay Raises

Organizers Claim More Than 300 Stores in 45 States Involved

A Starbucks barista strike is expanding to some 5,000 workers at more than 300 stores in 45 states, just as the company’s busy holiday stretch begins. Although it still only represents approximately 3% of all U.S. Starbucks locations, it’s an expansion of an action that began last week in three cities.

Unfair Labor Practices and Stalled Negotiations at Issue

Organized by the Service Employees International Union and Starbucks Workers United, the strike aims to draw attention to alleged unfair labor practices and stalled negotiations over a contract that would cover thousands of workers. The workers are seeking an immediate increase in Starbucks’ minimum hourly wage by as much as 64%, and over 77% over the life of a three-year contract.

Workers’ Demands

“After all Starbucks has said about how they value partners throughout the system, we refuse to accept zero immediate investment in baristas’ wages and no resolution of the hundreds of outstanding unfair labor practices,” Lynne Fox, president of the Workers Union, said in a statement. “Baristas know their value, and they’re not going to accept a proposal that doesn’t treat them as true partners.”

Starbucks’ Response

Starbucks said only around 170 Starbucks stores did not open as planned. With over 10,000 company-operated stores, it said, 98% of its stores and nearly 200,000 employees continued to work as normal.

In a memo to employees posted by the company, a Starbucks executive called the union’s demands “not sustainable,” while touting the overall benefits package workers can receive, noting employees who work at least 20 hours a week receive $30 an hour, on average, when combining pay and benefits.

“The union chose to walk away from bargaining last week,” said Sara Kelly, Starbucks’ executive vice president. “We are ready to continue negotiations when the union comes back to the bargaining table.”

Investor Sentiment and Company Performance

Starbucks enjoyed a surge in investor sentiment after it poached Chipotle CEO Brian Niccol to be head of the coffee chain in August, though its share price has since declined in recent weeks alongside the broader market pullback.

Niccol has pledged to negotiate with the union in good faith, though his previous tenure at the burrito chain was marked by at least two settlements with workers demanded by the National Labor Relations Board.

Conclusion

The strike has expanded to over 5,000 workers across 45 states, with the union demanding significant wage increases and resolution of alleged unfair labor practices. While Starbucks has maintained that the union’s demands are “not sustainable,” the strike is likely to continue to put pressure on the company to negotiate a new contract.

FAQs

* What is the scope of the strike?
The strike involves over 5,000 workers at more than 300 stores in 45 states.
* What are the union’s demands?
The union is seeking an immediate increase in Starbucks’ minimum hourly wage by as much as 64%, and over 77% over the life of a three-year contract, as well as resolution of alleged unfair labor practices.
* How has Starbucks responded to the strike?
Starbucks has called the union’s demands “not sustainable” and has maintained that 98% of its stores and nearly 200,000 employees continued to work as normal.