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Starbucks Workers United announced that the union baristas will go on a five-day unfair labor practice (ULP) strike in response to the company "backtracking" on their previous pledge. The union started its Christmas week strike on December 20. Unless Starbucks honors its "commitment to work towards a foundational framework," the ULP strike will expand from Los Angeles, Chicago, and Seattle to Columbus, Denver, and Pittsburgh until Christmas Eve.
According to the Starbucks Newsroom,
"An overwhelming 98 percent of union partners voted in favor of the strike authorization, showing their willingness to do whatever it takes to protest hundreds of still-unresolved unfair labor practice charges (ULPs) and win a strong foundational framework for union contracts."
Starbucks Workers United has been negotiating with Starbucks since February 2024 but claimed the company "refused to bargain" and worse, engaged in terrible negotiations. This led to the announcement of a strike last Thursday, December 19, 2024.
Starbucks Workers United, which has unionized over 525 Starbucks locations nationwide, stated in a press release that unfair labor practices and stalled talks with the company sparked the holiday season strike. The union announced that a series of escalating strikes would continue until December 24, targeting the company’s busiest days of the year.
In an X post, Starbucks Workers United mentioned that the company has "repeatedly pledged publicly" however "they have yet to present workers with a serious economic proposal."
The coffee chain, on the other hand, commented:
"Starbucks Workers United proposals call for an immediate increase in the minimum wage of hourly partners by 64%, and by 77% over the life of a three-year contract. This is not sustainable."
Demands of Starbucks Workers United
Negotiations between Starbucks and its unionized workers are currently centered on pay raises. Starbucks has committed to an annual pay increase of at least 1.5% for union workers, even if non-union employees receive a lower increase. The union is pushing for a 64% immediate increase in the minimum wage for hourly workers, with a total increase of 77% over a three-year contract.
Starbucks states that it already pays an average of $18 per hour, with benefits like healthcare, education reimbursement, and paid family leave raising the total compensation to $30 per hour for workers who put in at least 20 hours per week.
However, Silvia Baldwin, a Philadelphia barista and bargaining delegate, said through Starbucks Workers United:
"Starbucks can’t get back on track as a company until it finalizes a fair contract that invests in its workforce. Right now, I’m making $16.50 an hour. Meanwhile, Brian Niccol’s compensation package is worth $57,000 an hour. The company just announced I’m only getting a 2.5% raise next year, $0.40 an hour, which is hardly anything. It’s one Starbucks drink per week. Starbucks needs to invest in the baristas who make Starbucks run."
Effects of the holiday season strike
The strikes are not new for Starbucks, as workers previously protested during busy periods like Red Cup Day in November 2023 and during Pride Month in June 2023. Despite a more cooperative tone earlier this year, with over 30 agreements reached in nine bargaining sessions since April, the company is still facing challenges, including falling sales and a leadership shake-up. CEO Laxman Narasimhan, who had promised to work toward a labor agreement, was ousted this summer.
Currently, the company and the union are at an impasse. Fatemeh Alhadjaboodi, a Starbucks barista and bargaining delegate, criticized the company for investing millions in executives while not offering a reasonable economic proposal for its workers.
How will the strike affect Starbucks customers?
The holiday strike by Starbucks Workers United may affect customer service by causing longer wait times, reduced store hours, or even temporary store closures. With fewer staff on hand, some locations may struggle to meet customer demands, especially for seasonal items. Additionally, supply chain issues may arise, resulting in product shortages or potential price increases as the company works to manage the disruption.
Customers aware of the strike may choose to support the workers by shopping elsewhere or advocating for improved working conditions, influencing public opinion. The strike could also damage Starbucks' reputation, particularly among consumers who value ethical labor practices. As the company faces increasing pressure, the strike taps into bigger concerns about worker welfare, corporate responsibility, and transparency. While it may inconvenience customers, it also raises awareness about the importance of fair labor practices in large companies.
Why do strikes happen?
Strikes, like the one done by Starbucks Workers United, during the holiday season, allow unions to leverage negotiations by rallying support from workers and customers who care about worker welfare. By disrupting the company’s busiest and most profitable period, unions draw attention to issues like low wages, poor working conditions, lack of benefits, and inadequate staffing.
These strikes also give workers a platform to oppose unfair treatment, unsafe environments, and violations of labor rights, strengthening solidarity among workers and the public. Ultimately, they aim to pressure companies to meet workers' demands and push for fairer labor practices.
