Starbucks union authorizes open-ended strike as holiday season begins

Starbucks Workers United has authorized an open-ended strike that could begin on Red Cup Day, one of the coffee chain’s biggest sales days of the year, the union announced Wednesday.

The union is preparing to strike in more than 25 cities if it does not reach a collective bargaining agreement with Starbucks by November 13, which coincides with Red Cup Day this year. The two sides were not in active negotiations to reach a contract after talks between them broke down late last year. Starbucks and the union reached a settlement in February and hundreds of baristas delegates rejected The economical package offered by Starbucks in April.

The strike mandate won 92 percent of the vote, according to Starbucks Workers United.

The union is pushing for improved working hours, higher wages and a settlement of hundreds of unfair labor practice allegations against Starbucks.

The strike may conflict with Starbucks’ annual giveaway of reusable red cups bearing the company’s logo with any purchase. This freebie has become a collectible for the coffee giant’s biggest fans.

With no end date in sight, the strike will also disrupt Starbucks’ public holiday season, which falls in the first quarter of the company’s fiscal year and is one of the busiest times of the year for the coffee chain. Customers flock to cafes for seasonal drinks like peppermint mochas, as well as gift cards and other items.

Workers United, which began organizing at Starbucks in 2021, says it now represents more than 12,000 workers at more than 650 stores. (The company told CNBC that the union represents workers at only 550 cafes, which accounts for some store closures over time.)

In a statement, Starbucks said it will be ready to serve customers at approximately 18,000 company-operated and licensed stores this holiday season.

“We’re disappointed that Workers United, which represents only 4 percent of our partners, voted to authorize a strike rather than return to the bargaining table. We’re ready to talk when they’re ready to come back,” Starbucks spokeswoman Jaci Anderson said.

Starbucks said any agreement with the union “must reflect the fact that it already offers the best work in retail, including an average hourly wage of more than $30 and benefits for hourly associates. The facts show people enjoy working at Starbucks. Associate engagement is up, turnover is nearly half the industry average, and we receive more than 1 million job applications a year.”

The company is in the midst of a turnaround plan called “Return to Starbucks” under new CEO Brian Niccol, which is starting to show momentum. Starbucks reported In the fiscal fourth quarter, same-store sales returned to growth for the first time in nearly two years. The coffee chain’s global same-store sales increased 1%, driven by international markets. Same-store sales in the U.S. were flat in the quarter but turned positive in September.

Starbucks also announced a $1 billion restructuring plan in September that included closing nearly 500 stores in North America and laying off 900 workers in non-retail jobs, according to analysts’ estimates.