More than 1,000 unionized Starbucks workers plan to strike at 65 U.S. Stores Thursday to protest a lack of progress in labor negotiations with the company.
TL;DR
- Over 1,000 unionized Starbucks workers are striking at 65 U.S. stores on Red Cup Day.
- The strike protests stalled labor negotiations and a lack of contract agreement with Starbucks.
- Workers demand higher pay, better hours, flexible schedules, and resolution of unfair labor practice complaints.
- Starbucks states it offers competitive wages and benefits, with most stores remaining open.
The work stoppage aimed to disrupt Starbucks' Red Cup Day, a day usually among the company's busiest. For years, since 2018, Starbucks has offered complimentary reusable cups to patrons purchasing a holiday beverage on this occasion.
Starbucks Workers United, the union organizing Starbucks baristas, said stores in 45 cities would be impacted, including New York, Philadelphia, Minneapolis, San Diego, St. Louis, Dallas, Columbus, Ohio, and Starbucks’ home city of Seattle. There is no date set for the strike to end, and more stores are prepared to join if Starbucks doesn’t reach a contract agreement with the union, organizers said.
Starbucks stated that most of its American locations would remain open and functional on Thursday. The prominent coffee company operates 10,000 company-owned outlets across the U.S., in addition to 7,000 franchised sites situated in venues such as supermarkets and airports.
Approximately 550 Starbucks locations in the U.S. Are presently unionized. Additional stores have voted to unionize, but Starbucks closed 59 unionized stores in September as part of a broader restructuring effort.
Here’s what’s behind the strike.
A stalled contract agreement
Striking workers say they’re protesting because Starbucks has yet to reach a contract agreement with the union. Starbucks workers first voted to unionize at a store in Buffalo in 2021. In December 2023, Starbucks vowed to finalize an agreement by the end of 2024. But in August of last year, the company ousted Laxman Narasimhan, the CEO who made that promise. The union said progress has stalled under Brian Niccol, the company’s current chairman and CEO.
Workers want higher pay, better hours
Employees are asking for more flexible schedules and better staffing levels in their stores, citing frequent long waits for customers. They claim that a significant number of employees aren't receiving the minimum 20 hours weekly necessary to qualify for Starbucks' benefits. Additionally, they are demanding increased wages, noting that executives such as Niccol are making millions.
Additionally, the union is requesting the company settle numerous unfair labor practice complaints from employees. These workers allege the company terminated baristas for their union involvement and neglected to negotiate policy shifts that employees are required to implement, such as the recent decision this year to limit restroom use for customers.
Starbucks stands by its wages and benefits
Starbucks asserts it provides the top wage and benefits in the retail sector, valued at approximately $30 per hour. The company's offerings include as much as 18 weeks of paid parental leave and full tuition coverage for a bachelor's degree. In a recent letter to its staff, Starbucks' Chief Partner Officer Sara Kelly stated that union representatives departed from negotiations earlier this year.
Kelly said Starbucks remained ready to talk and “believes we can move quickly to a reasonable deal.” Kelly also said surveys showed that most employees like working for the company, and its barista turnover rates are half the industry average.
Limited locations with high visibility
Unionized workers have gone on strike at Starbucks before. In 2022 and 2023, workers walked off the job on Red Cup Day. Last year, a five-day strike ahead of Christmas closed 59 U.S. Stores. Each time, Starbucks said the disruption to its operations was minimal. Starbucks United said the new strike is open-ended and could spread to many more unionized locations.
While most Starbucks stores remain non-unionized, Todd Vachon, a union expert from Rutgers School of Management and Labor Relations, believes any strike could garner significant public attention and inform people about baristas' issues.
Unlike manufacturers, Vachon said, retail industries depend on the connection between their employees and their customers. That makes shaming a potentially powerful weapon in the union’s arsenal, he said.
Improving sales
Starbucks’ same-store sales, or sales at locations open at least a year, rose 1% in the July-September period. It was the first time in nearly two years that the company had posted an increase. In his first year at the company, Niccol set new hospitality standards, redesigned stores to be cozier and more welcoming, and adjusted staffing levels to better handle peak hours.
Starbucks is also aiming to give preference to in-store purchases rather than mobile ones. The company's holiday beverage launch in the U.S. Last week proved so popular that its glass Bearista cup was nearly sold out right away. Starbucks indicated that demand for the cup surpassed their projections, but they declined to confirm if the Bearista would be available again before the holiday season concludes.