Starbucks shares slip amid looming barista strike

Investing.com -- Starbucks Corporation (NASDAQ:SBUX ) shares edged down 0.75% as the company faces a potential strike from unionized baristas. The union representing Starbucks Corp . baristas announced plans for a five-day strike starting Friday after negotiations reached a stalemate. The strike is expected to affect stores in major cities, including Los Angeles, Chicago, and Seattle.

The labor dispute has been ongoing since the first store organized in December 2021, with employees seeking improved compensation, schedules, and hours. This marks the latest development in a series of contentious interactions between Starbucks and its unionized workforce. In November, a high-profile strike occurred on the company's Red Cup Day, a significant promotional event.

Starbucks Workers United, representing workers at over 500 of the company's approximately 10,000 operated stores in the U.S., has expressed dissatisfaction with the coffee chain's latest offer, which did not include immediate raises for union members. The union anticipates the strikes could expand to hundreds of stores by Christmas Eve, potentially impacting the company's holiday season performance.

In response to the planned strike, Starbucks stated that the union "prematurely ended" the recent bargaining session and emphasized its readiness to continue negotiations. The company highlighted that it had reached "meaningful agreements" on more than 30 issues important to workers, including economic demands. Starbucks also noted that it is concentrating on enhancing the worker experience, claiming that its pay and benefits package for baristas working at least 20 hours a week averages $30 an hour.

As the situation develops, investors will be watching closely to see how the strike impacts Starbucks' operations and whether the two parties can come to an agreement that satisfies both sides and ends the labor dispute.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com