Starbucks Workers United union sends contract proposal to company

Starbucks As baristas try to negotiate their first employment contract with the coffee giant, the union said in a call with investors Friday that Workers United has presented the company with a comprehensive contract offer.

Here’s what the baristas wanted in that offer:

• Protection of union baristas against discrimination, unfair dismissals, and temporary or permanent store closures.
• Starting pay starts at $17 per hour; That’s down from the previous offer of $20 an hour, but still above the company’s current starting wage of $15.25 to $16 an hour in 43 states.
• Annual increases 4%.
• A process for resolving labor grievances of baristas, management, and union representatives.
• A dress code approved by the union.
• Requirement that there be at least three workers on the floor at all times and that applicable personnel and safety precautions be taken.
• The authority to offer open hours to existing employees before hiring new baristas.
• Resolving hundreds of outstanding unfair labor practice charges.

The union said Starbucks has not yet responded to the content of the proposal.

The coffee giant told CNBC that it wants to restart talks with Workers United as soon as this month.

“Starbucks offered to resume face-to-face bargaining with Workers United on March 30 and remain available for ongoing talks through April,” Starbucks spokeswoman Jaci Anderson said in a statement. he said.

Workers United represents about 6% of Starbucks’ company-owned locations in the United States, according to regulatory filings.

The announcement comes months after bargaining talks between the two sides hit a wall. Starbucks and the union last held formal negotiations in December 2024. A few months later, the two sides met for mediation, but hundreds of baristas delegates rejected The economic package the company proposed in April.

Over the holiday season, baristas in more than 40 cities staged an open-ended strike that spanned several weeks. The work stoppage led to the closure of dozens of temporary stores during the coffee chain’s busiest period, but the company said it did not materially affect its business.

Starbucks’ tense relations with its baristas are likely to draw attention at the annual shareholder meeting scheduled for March 25.

A group of investors led by union-affiliated SOC Investment Group is urging shareholders to vote against the re-election of Jørgen Vig Knudstorp and Beth Ford, citing their oversight role tied to the company’s labor relations. Proxy advisory firm Glass Lewis, chairman of the nominating and corporate governance committee, recommended voting against Ford’s re-election.

The long-running battle between the company and its baristas poses a potential hurdle as Starbucks tries to turn around its stagnant U.S. business. The company’s holiday store traffic increased for the first time in two years.

Starbucks’ newest annual filingThe company has stated that potential risks such as further business disruption or damage to its reputation and brand lie ahead.