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FinanceStarbucks

Starbucks union approves strike ahead of final bargaining

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Bloomberg
Bloomberg
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December 17, 2024, 3:43 PM ET
Starbucks workers striking
Starbucks workers are striking due to overwhelming demands and understaffing at many of the stores in New York, USA, on November 16, 2023. Photo by Victor M. Matos/Thenews2/NurPhoto via Getty Images)

The union representing Starbucks Corp. baristas voted to authorize a strike ahead of the final stages of bargaining over contract terms.

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Starbucks Workers United said 98% of union members voted in favor of a stoppage, which will occur “if necessary,” according to an announcement Tuesday. No decision has been made on whether workers will strike or when. The union represents employees at over 500 of the company’s more than 10,000 company-operated stores in the US.

Starbucks had been locked in a bitter, high-profile battle with the union since the first store organized in December 2021 to seek better pay, schedules and hours. Tensions eased earlier this year, when the company and the labor group agreed to resume bargaining with the aim of drafting a contract framework.

On Tuesday, Starbucks Workers United said that the company has “yet to bring a comprehensive economic package to the bargaining table,” and that hundreds of charges filed since at least 2022 alleging that Starbucks has engaged in unfair labor practices remain unresolved.

Starbucks said it remains committed to reaching a final agreement.

“It is disappointing that the union is considering a strike rather than focusing on what have been extremely productive negotiations,” the company said in an emailed statement. “If the delegates want to serve the partners they represent, they need to continue the work of negotiating.” 

Final session

Union bargaining delegates are meeting with Starbucks on Tuesday for the last scheduled negotiating session of the year. Since resuming talks in April, the two parties have “advanced dozens of tentative agreements,” according to the union. Pay is among the key outstanding matters.

“It’s time to finalize a foundational framework that includes meaningful investments in baristas and to resolve unfair labor practice charges,” said Silvia Baldwin, a Philadelphia barista and bargaining delegate. 

Starbucks said the two parties have reached more than thirty “meaningful agreements on dozens of topics” that workers have raised, “including many economic issues.”

In some industries, including in the automotive sector, it’s common practice to get approval for a strike ahead of negotiations as a way to pressure companies. The Starbucks union hasn’t staged strikes, filed new unfair labor practice charges or lawsuits since February.

Starbucks said on Monday that it would expand parental leave benefits for baristas, based on worker feedback. Starbucks Workers United said it had made a proposal on the issue during bargaining. Raises for baristas will be smaller this year than last after the company’s weaker-than-expected financial results.

The company said its compensation and benefits are worth $30 an hour on average, and that baristas working 20 hours a week or more can qualify.

(Updates with comment from Starbucks.)

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