Starbucks Union Stores Strike Over Pay and Staffing Issues
Sixty-five Starbucks stores in the US with a union presence are on strike over pay and staffing as part of Starbucks Workers United. More than 1,000 union baristas across over 40 cities are participating in an unfair labour practices strike timed to coincide with Red Cup Day.
The union has won elections at more than 600 company-owned US stores, representing about 5% of all locations. Contract talks broke down in the spring, and although a mediator was engaged in January, disagreements persist regarding pay, staffing, and hundreds of unfair labour practice charges.
This strike affects fewer than 1% of Starbucks stores. Service will continue at the vast majority and might expand if no deal is reached.
Starbucks CEO Brian Niccol has introduced the Back to Starbucks strategy, which includes banning non-customers from bathrooms, enforcing a tighter dress code, reintroducing seating, and planning to invest more than $500 million to improve staffing and training.
Starbucks argues that the proposed pay raises would significantly impact store operations. The union counters that the current offer includes no first-year raise and only modest increases thereafter, calling instead for a livable wage and better scheduling.
Starbucks has reported 1% growth in global sales at stores open at least one year, while US sales remained flat. The company maintains that it already offers competitive pay and benefits, citing an average hourly wage of about $30 and low staff turnover.
