Union action at Starbucks spreads to 9 different states
Starbucks Workers United announced that on Sunday, union members in Missouri, New Jersey, and New York began a strike, following locations in Colorado, Ohio, and Pennsylvania who joined the action the previous day. The union represents over 10,000 workers across more than 525 stores.
According to a Starbucks Workers United spokesperson, 30 stores nationwide were completely shut down during the strike, but the total impact for Sunday is yet to be determined. The union predicted that by Tuesday, the strike could extend to "hundreds of stores," a small fraction of Starbucks' over 10,000 company-operated stores with over 200,000 employees.
The strike entered its third day after walkouts in Chicago, Los Angeles, and Seattle on Friday, where Starbucks has its headquarters and first-ever store.
Starbucks Workers United is aiming for wage increases for baristas as part of an economic proposal before the end of the year. They claimed to have had a plan in place with Starbucks management since February to reach their first labor agreement and resolve ongoing legal disputes.
Starbucks terminated bargaining sessions prematurely this week, they stated, having held over nine sessions and negotiated over 20 days since April. Starbucks argued that the union ended discussions without resolution.
Lynne Fox, president of Workers United, stated that the union would not accept zero immediate wage increases and no resolution of unfair labor practices. She mentioned that union baristas knew their worth and would not settle for a proposal that did not recognize them as true partners.
Starbucks proposed no immediate wage increases and a guarantee of only 1.5% in the future, equal to less than 50 cents an hour for most workers, in December.
The Christmas Eve Strike
The five-day strike is occurring during the busy holiday season when Starbucks typically sees an increase in sales due to its fall and winter beverages, gift cards, and drinkware products.
There are currently no picketing locations in New Jersey, but there have been pickets in Brooklyn and Long Island in New York. Missouri saw St. Louis join the strike on Sunday, while Pittsburgh joined in Pennsylvania on Saturday, and Philadelphia joined on Sunday.
"The few disruptions we have experienced this week have had no significant impact to our store operations. Only a small handful of our US stores have been impacted," Starbucks stated on Sunday.
Union Demands
In February, Starbucks agreed to use the established framework to resolve litigation related to partner benefits announced in May 2022 and the use of the Starbucks brand in an intellectual property lawsuit. The company also agreed to provide credit card tipping and the previously announced benefits to union workers.
Starbucks announced on Sunday that it offers a benefits package unlike any other retailer, with an average pay that exceeds $18 an hour when combined with its benefits package, amounting to $30 an hour for baristas working at least 20 hours a week.
However, the union claimed that Starbucks management has reversed course since September, when Brian Niccol took on the role of CEO. The union filed a new unfair labor practice charge on Friday, accusing Starbucks of refusing to bargain and engaging in bad faith bargaining over economic issues.
Starbucks argued that it cannot afford to meet the union's wage demands, saying that their proposals call for an immediate increase in the minimum wage of hourly partners by 64%, and a 77% increase over the course of a three-year contract. The company found these demands unsustainable.
The union denied asking for such significant wage increases in their proposals, stating that Starbucks' claim misrepresents and combines various separate demands. Despite this, the union declined to provide specifics about their demands.
The strike actions by Starbucks Workers United could potentially impact various business operations, as the dispute over wage increases and labor agreements continues to escalate. Starbucks, with over 200,000 employees, operates numerous stores across the country, making a nationwide resolution crucial for the overall business operations.
