As the Christmas season approaches, Starbucks Workers United, a union representing employees at Starbucks in the United States, announced on Wednesday that its members have voted to authorize an indefinite strike to protest the year-long stalemate in labor negotiations with the management.
The union stated that if an agreement is not reached by November 13, known as “Red Cup Day,” employees will initiate strike actions in over 25 cities nationwide, with a possibility of expanding the scale based on the progress of negotiations. Red Cup Day is a holiday sales peak for the company where they give out a reusable red cup, crucial for their holiday business performance.
Accusing Starbucks of continuously stalling negotiations since the end of last year, the union has filed over 1,000 unfair labor practice charges with the National Labor Relations Board (NLRB). Starbucks, on the other hand, refuted the claims, stating that they are willing to resume discussions and highlighting that the union only represents about 4% of their total U.S. store employees, approximately 9,500 workers.
Michelle Eisen, a spokesperson for the union and a former Starbucks employee of 15 years who later became a union activist, stated in a release, “If Starbucks continues to obstruct, they should expect their business to come to a standstill. It’s time for Starbucks to make a stand now.”
Starbucks Workers United has been in negotiations with the company since last year, pushing for a contract that reflects “fairer staffing, higher wages, and job security.” In October, the union conducted voting in around 60 cities to decide on striking.
In its statement, Starbucks emphasized that any agreement should be “realistic” and highlighted that they provide the best working conditions in the retail industry. For employees working over 20 hours a week, benefits such as health insurance, parental leave, and tuition for Arizona State University online courses are offered. Starbucks also claimed that even if the union takes action, “the vast majority of stores can still operate during the holiday season.”
Brian Niccol, the CEO of Starbucks, is spearheading reforms in U.S. stores to regain customer confidence. After six consecutive quarters of declining sales, the quarterly report ending on October 29 showed stagnant sales in North American stores with only a 1% global growth.
To cut costs, Starbucks closed over 600 stores in September, including their first unionized store in Seattle, and laid off some corporate headquarters employees.
In April, the union representatives rejected Starbucks’ proposed annual wage increase plan, arguing that it only guaranteed a 2% raise per year without improvements to medical benefits or immediate wage hikes. In October, the New York City Comptroller and some shareholders jointly wrote to the Starbucks board urging a return to the negotiation table.
With only a few days left until Red Cup Day, the labor-management standoff remains unresolved. If negotiations fall through, this will be Starbucks’ biggest labor challenge during the holiday sales season.
Starbucks, founded in 1971 in Seattle, is one of the largest global coffee chains. Operating in more than 80 countries, the company has over 40,000 stores and employs over 360,000 workers. Facing challenges like slowing sales, labor disputes, and shifts in consumer markets, Starbucks is seeking transformation through digitization and store restructuring.
(Reference from Reuters)