Introduction to the Strike
Starbucks’ union members have voted to strike at the company’s U.S. stores next week unless it finalizes a contract agreement, the union said Wednesday. The strike would begin on Nov. 13, which is the day Starbucks plans to distribute free, reusable red cups. Red Cup Day, a Starbucks tradition since 2018, is typically one of the company’s busiest days of the year.
Impact of the Strike
Starbucks Workers United, the union organizing baristas, didn’t say how many stores would be impacted. But it said workers in at least 25 cities planned to strike and more locations could be added if the union doesn’t see “substantial progress” toward finalizing a contract. Around 550 of Starbucks’ 10,000 company-operated U.S. stores are currently unionized. More stores have voted to unionize since 2021, but Starbucks closed 59 unionized stores in September as part of a larger restructuring.
Contract Negotiations
The union and the company have yet to agree to a labor contract. In December 2023, Starbucks vowed to finalize an agreement by the end of 2024. But the company ousted Laxman Narasimhan, the CEO who made that promise, last fall. The union said progress has stalled under Brian Niccol, the company’s new chairman and CEO. Starbucks said Wednesday that it’s disappointed the union plans to strike instead of returning to the bargaining table.
Proposed Agreement
In a letter to Starbucks employees released Wednesday, Starbucks’ Chief Partner Officer Sara Kelly said the union has proposed a 65% pay increase immediately and a 77% increase over three years, with additional payments for things like weekends or days when Starbucks runs promotions. Kelly also said some proposals would significantly alter Starbucks’ operations, such as giving workers the ability to shut down mobile ordering if a store has more than five orders in the queue. “These aren’t serious, evidence-based proposals," Kelly said.
Union Response
The union said Starbucks is unfairly lumping together various economic proposals from the union to arrive at those pay raise figures. Unionized baristas also said they don’t always get the 20 hours per week they need to be eligible for Starbucks’ benefits. They point to Starbucks’ generous pay package for Niccol, which saw him make $95.8 million in 2024. The package included $75 million in equity to make up for what he forfeited by his abrupt departure from Chipotle, his previous employer.
Worker Demands
“Our fight is about actually making Starbucks jobs the best jobs in retail. Right now, it’s only the best job in retail for Brian Niccol,” said Jasmine Leli, a three-year Starbucks barista and strike captain from Buffalo, New York. Leli said starting pay for baristas in most states is $15.25 per hour.
Previous Labor Actions
The strike would echo previous labor actions against the company. In 2023, thousands of Starbucks workers at more than 200 stores walked off the job on Red Cup Day. Last year, a five-day strike ahead of Christmas closed 59 U.S. stores.
Store Operations During the Strike
In her letter, Kelly emphasized that most company-owned stores as well as 7,000 licensed locations in places like airports will remain open if there is a strike. Starbucks shares rose nearly 4% in Wednesday trading.
Conclusion
The strike by Starbucks union members is a significant development in the ongoing labor dispute between the company and its workers. The union is seeking better pay and benefits, while the company claims that its current offers are already generous. The outcome of the strike and the contract negotiations will have a significant impact on the company’s operations and its relationship with its employees.
FAQs
Q: When is the strike planned to start?
A: The strike is planned to start on November 13, which is also Red Cup Day.
Q: How many stores are expected to be impacted by the strike?
A: The union didn’t say how many stores would be impacted, but workers in at least 25 cities planned to strike.
Q: What are the union’s demands?
A: The union is seeking better pay and benefits, including a 65% pay increase immediately and a 77% increase over three years.
Q: How has Starbucks responded to the union’s demands?
A: Starbucks has said that the union’s proposals are not serious or evidence-based and that the company already offers the best job in retail.
Q: Will all Starbucks stores be closed during the strike?
A: No, most company-owned stores and 7,000 licensed locations in places like airports will remain open during the strike.
