Starbucks Corporation (SBUX.US) union to strike in three cities on Friday, salary negotiations deadlocked

date
20/12/2024
avatar
GMT Eight
The union representing Starbucks Corporation(SBUX.US) baristas announced plans to go on a five-day strike starting Friday, as negotiations have hit a standstill with no breakthrough. The strike will cover Starbucks Corporation stores in Los Angeles, Chicago, and Seattle that are affiliated with the union, which represents employees in over 500 company-owned stores in the US. The union stated that the decision to strike came after Starbucks Corporation's proposal to immediately raise wages for union baristas was not met. Since the first store union was formed in December 2021, Starbucks Corporation has been in intense negotiations with the union over wages, working hours, and other conditions. This strike marks the first action taken since both parties agreed to resume negotiations in February, with more stores expected to join the strike before Christmas. In response to the strike, Starbucks Corporation stated in a statement that the union had "prematurely ended" negotiations this week and expressed willingness to continue negotiations to reach an agreement, urging the union to return to the negotiating table. Starbucks Corporation emphasized that meaningful agreements had been reached on over 30 issues of concern to workers, including economic needs, and that the company is committed to enhancing employee experience by providing an average hourly wage and benefits of $30 for baristas working at least 20 hours per week. However, the Starbucks Workers United union countered that the company had not presented a comprehensive economic proposal at the negotiating table and that hundreds of unfair labor practice allegations made since 2022 remain unresolved. The union and Starbucks Corporation are set to hold their final negotiation meeting of the year on Tuesday. Since resuming negotiations in April, the two sides have reached "dozens of interim agreements," but wages remain a key unresolved issue. Union negotiators are calling for a framework that includes meaningful investment in baristas and addressing unfair labor practices. Starbucks Corporation, on the other hand, stated that multiple agreements have been reached on issues raised by employees and expressed disappointment in the union's decision to strike instead of focusing on negotiations. Additionally, Starbucks Corporation announced on Monday that it will expand childcare leave benefits for baristas based on employee feedback, a suggestion raised during union negotiations. Due to lower-than-expected financial performance, this year's wage increase for baristas is lower than last year's, but Starbucks Corporation emphasized that the average hourly wage and benefits amount to $30 for baristas working 20 hours or more per week. It is worth noting that in some industries, such as the automotive industry, securing strike approval before negotiations is a common practice to exert pressure on companies. Since February, the Starbucks Corporation union has not initiated a strike or filed new unfair labor practice allegations or lawsuits.

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