More than 100 lawmakers push Starbucks to resume union negotiations

More than 100 MPs called Starbucks In letters sent to CEO Brian Niccol on Monday, it was stated that bargaining talks would continue with Workers United, the union representing the coffee giant’s baristas.

Congressional Working Group and Sen. Bernie Sanders, I-Vt. The two letters from a group of senators led by the union come as the union threatens strikes in 25 cities starting Thursday. This coincides with Starbucks’ Red Cup Day, one of the biggest sales days of the holiday season.

“It is clear that Starbucks has the money to reach a fair agreement with its workers,” the Senate letter, signed by 26 lawmakers, said. The statement is included. “Starbucks must reverse its current stance, resolve existing labor disputes, and enter into a fair contract with these employees in good faith.”

A second Congressional Labor Group letter was signed by 82 MPs.

Lawmakers argued that the coffee giant had the resources to increase workers’ wages and benefits, citing the $95 million in compensation Niccol has received since his hiring. The company said $90 million of the compensation package was in the form of stock awards to cover the equity Niccol left behind at Chipotle when he moved to Starbucks to take on the CEO role.

Last week, Workers United announced that its strike authorization vote had received 92 percent approval from its members. If the union decides to strike, it will be open-ended. Workers United is pushing to improve hours, raise wages and resolve hundreds of allegations of unfair labor practices against the company.

The two sides are not in active contract talks after talks 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.

Both sides blamed the other side for the failure to reach a bargaining agreement and said they were ready to negotiate.

Workers United, which started organizing at Starbucks in 2021, says it now represents more than 12,000 workers at more than 650 stores. The company told CNBC last week that the union represents only 9,500 workers at 550 cafes.

“We want Starbucks to succeed, but turning the company around and bringing customers back starts with listening to and supporting the baristas responsible for the Starbucks experience. If Starbucks continues to stonewall, they should expect their business to grind to a halt. The ball is in Starbucks’ court,” Starbucks Workers United spokeswoman Michelle Eisen said in a statement last week.

In response to last week’s strike vote results, Starbucks said it would be ready to serve customers at its approximately 18,000 company-operated and licensed stores this holiday season.

“As everyone knows, Starbucks offers the best job in retail, with an average pay of more than $30 an hour and benefits. Workers United, which represents only 4% of our partners, has chosen to walk away from the bargaining table. We have asked them to return multiple times. If they are ready to return, we are ready to talk. We believe we can move quickly to a reasonable agreement,” Starbucks spokeswoman Jaci Anderson told CNBC on Monday. he said.

In a letter to workers last week regarding the strike authorization vote, Starbucks chief executive officer Sara Kelly reiterated her belief that an agreement could be reached quickly.

“We have been at the bargaining table for months, working in good faith with Workers United and delegates from around the country to reach agreements that make sense for the partners and for Starbucks’ long-term success,” Kelly said. “We have reached more than 30 tentative agreements on full contract clauses.”

“Our commitment to bargaining remains unchanged,” he added. “Workers United have walked away from the table, but if they are ready to come back, we are ready to talk. We believe we can move quickly to a reasonable agreement.”

Reuters previously reported Letters from MPs.

— CNBC’s Amelia Lucas contributed to this report