Starbucks workers' union goes on strike in US cities as talks hit impasse

By Savyata Mishra and Gursimran Mehar

(Reuters) - Some members of the workers' union representing over 10,000 baristas at Starbucks (NASDAQ:SBUX ) began a five-day strike at stores in Los Angeles, Chicago, and Seattle starting Friday, citing unresolved issues over wages, staffing and schedules.

This is the latest in a series of labor actions that have picked up pace across service industries following a period when workers at manufacturers in the automotive, aerospace and rail industries won substantial concessions from employers.

Amazon (NASDAQ:AMZN ) workers at seven U.S. facilities walked off the job on Thursday during the holiday shopping rush.

There were 33 work stoppages in 2023, the most since 2000, though far lower than in past decades, data from the U.S. Bureau of Labor Statistics showed.

At Starbucks, the Workers United union, which represents employees at 525 stores across the U.S., said late on Thursday that walkouts would escalate daily, and could reach "hundreds of stores" nationwide by Christmas Eve.

Starbucks declined to comment on the number of outlets impacted by the walkout and the number of workers on strike, but stated that there was no significant impact to store operations on Friday.

"It's (the strike) taking place during one of the busiest times of the year for Starbucks, which could magnify its impact while bringing unwanted public scrutiny into the company's labor practices," Emarketer analyst Rachel Wolff said.

Negotiations between the company and Workers United began in April, based on an established framework agreed upon in February, which could also help resolve numerous pending legal disputes.

The company said on Thursday it has held more than nine bargaining sessions with the union since April, and reached more than 30 agreements on "hundreds of topics", including economic issues.

The Seattle-headquartered firm said it is ready to continue negotiations, claiming the union delegates prematurely ended the bargaining session this week.

The union, however, said in a Facebook (NASDAQ:META ) post on Friday that Starbucks had yet to present a serious economic proposal with less than two weeks remaining until the year-end contract deadline.

The workers' group also snubbed an offer of no immediate wage hike and a guarantee of a 1.5% increase in future years.

"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 year contract. This is not sustainable," Starbucks said on Friday.

Hundreds of complaints have been filed with the National Labor Relations Board (NLRB), accusing Starbucks of unlawful labor practices such as firing union supporters and closing stores during labor campaigns. Starbucks has denied wrongdoing and said it respects the right of workers to choose whether to unionize.

Last month, the NLRB said that Starbucks broke the law by telling workers at its flagship Seattle cafe that they would lose benefits if they joined a union.

The coffee chain is undergoing a turnaround under its newly appointed top boss, Brian Niccol, who aims to restore "coffee house culture" by overhauling cafes and simplifying its menu among other measures.



"Given how much Starbucks is already struggling to win over customers, it can ill afford any negative publicity - or impact to sales - that the strike could bring," Wolff said.

The union has called for support at the picket lines in the three cities starting at around 1800 GMT, according to a post on X.

Source: Investing.com