A five-day strike by Starbucks (SBUX) baristas has resulted in the closure of 59 stores as of Monday afternoon, as reported by the union representing the workers. The strike, which commenced on Friday in Los Angeles, Chicago, and Seattle – the home city of Starbucks – has extended to stores in Boston, Dallas, and Portland, Ore. Additionally, workers in New York, Denver, Pittsburgh, and other cities have also joined the strike over the weekend.
Employees are protesting the lack of advancement in contract negotiations with the coffee giant. Starbucks Workers United, the organization behind the unionization effort initiated in 2021, has highlighted that Starbucks has failed to fulfill a commitment made in February to reach a labor agreement this year. The union is also calling for the resolution of pending legal matters, including numerous unfair labor practice charges filed by workers with the National Labor Relations Board. Since 2021, baristas at 535 company-owned Starbucks locations in the U.S. have voted in favor of unionizing.
The strike has come at a particularly busy time for Starbucks. However, the company has stated on Monday that there has been “no significant impact” on its store operations. Starbucks operates approximately 10,000 company-owned stores across the United States.
In a released statement on Monday, the company expressed, “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.” Negotiations have been ongoing between the two parties since spring, but they seem to have hit a roadblock primarily concerning economic matters. Starbucks has committed to an annual pay raise of 1.5% or more for unionized workers. Even if the company were to provide a lower increase to non-union employees in a particular year, union workers would still receive a minimum 1.5% raise.
Starbucks has disclosed that its U.S. baristas earn an average of $18 per hour. When factoring in benefits such as health care, tuition assistance, and paid family leave, the total compensation package for Starbucks baristas who work at least 20 hours per week amounts to an average of $30 per hour, according to the company. Nevertheless, workers argue that they merit higher compensation, pointing out that Starbucks’ incoming Chairman and CEO, Brian Niccol, who assumed the role in September, stands to earn over $100 million in his first year at the company.
The ongoing strike underscores the tensions between Starbucks and its workforce, highlighting the challenges of labor relations within the company. As negotiations continue, the impact of the strike on Starbucks’ operations and the resolution of the labor dispute remain key areas to monitor.
