Starbucks Workers United union strikes on Red Cup Day

Starbucks Workers United launched an open-ended strike in at least 40 cities on Thursday on Red Cup Day, one of the chain’s biggest sales days of the year.

The protest, which the union said involved more than 1,000 baristas at more than 65 stores, came after Workers United voted to authorize an open-ended strike after the baristas and the coffee giant failed to reach a collective bargaining agreement.

The strike could hurt Starbucks’ business during the busy holiday season; This typically leads to a boost in sales and will be key to the chain’s plan to improve its performance in the U.S. under new CEO Brian Niccol. Starbucks broke a nearly two-year streak of same-store sales declines in the most recently reported quarter. The company said past strikes affected less than 1% of its stores.

The union is pushing for improved working hours, higher wages and a settlement of hundreds of unfair labor practice allegations against Starbucks. 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. Both sides blamed the other 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 550 stores. The company told CNBC last week that the union represents only 9,500 workers at 550 cafes.

The baristas say they’re ready to escalate the walkout even further, threatening to make it “the largest, longest strike in the company’s history if Starbucks fails to offer a fair union contract and resolve unfair labor practice charges.” He is looking for new proposals that address the most important issues to conclude a contract.

“If Starbucks continues to obstruct a fair contract and refuses to stop union-busting, they will see their jobs grind to a halt,” Starbucks Workers United spokeswoman Michelle Eisen, a former barista who worked for the company for 15 years, said in a statement. “No contracts, no coffee is nothing more than a slogan; it’s a commitment to disrupt Starbucks operations and profits until there’s a fair union contract and an end to unfair labor practices. Starbucks knows where we stand.”

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

“Starbucks offers the best job in retail, including an average salary 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 come back — multiple times. If they are ready to come back, 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 permit vote, Starbucks chief executive officer Sara Kelly reiterated her belief that the parties could quickly reach an agreement.

“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.”