The strike, staged by Starbucks Workers United, began on Friday, December 20, 2024, and is intended to run through Christmas Eve, into the heart of one of the busiest sales periods for the chain.
Strike expands across several states
The strike first occurred in major cities like Los Angeles, Chicago, and Seattle, where Starbucks is headquartered and opened its first location. Over the weekend, it expanded to locations in Denver, Columbus, Ohio; Philadelphia, New York City, Boston, Dallas-Fort Worth, Texas, and Portland, Oregon. The union said on Sunday, December 22, that almost 50 stores have closed nationwide so far due to the strike.
Union’s demands and allegations
The group representing some 10,000 workers at over 525 Starbucks stores, is asking for immediate raises and resolution of the myriad legal complaints. In the letter, the union said Starbucks reneged on commitments it had made in February to negotiate on the labor agreement framework as well as to tackle outstanding legal issues, including unfair labor practice charges. Lynne Fox, the president of Workers United, had said, “After all Starbucks has said about how they value partners throughout the system, we refuse to accept zero immediate investment in baristas’ wages and no resolution of the hundreds of outstanding unfair labor practices. Union baristas know their value, and they’re not going to accept a proposal that doesn’t treat them as true partners.”
Starbucks’s position and response
Starbucks argued that the chain pays competitive compensation, averaging more than $18 an hour. Added to benefits, the company maintained that its baristas working 20 hours a week and over would take in the equivalent of $30 total compensation an hour. Starbucks also said it cannot afford to meet the union’s wage demands, saying its “proposals call for an immediate increase in the minimum wage of hourly partners by 64%, and by 77% over the life of a three-year year contract. This is not sustainable.”The union responded that its not a fair characterization, and Starbucks misrepresented their proposals.
How strike affects store operations during this holiday season
In the spirit of the holiday, this is also the time when the company experiences maximum patronage as many people usually flood its stores for seasonal drinks and other merchandise sold. Starbucks have assured customers that the strike has not affected the stores operations.
Undeterred by the strike, Starbucks spokesperson, Phil Gee, said: “The few disruptions we have experienced this week have had no significant impact to our store operations.
“Only a small handful of our US stores have been impacted,” Gee said. “We respect our partners’ right to engage in lawful strike activity, and we appreciate the thousands of partners across the country who are continuing to support each other and deliver the Starbucks experience for our customers.”
Ongoing negotiations
Implications of these negotiations which began in April between Starbucks and the union have become stuck on wages, staffing, and scheduling issues. The union also filed new unfair labor practice charges, accusing Starbucks of bargaining in bad faith. The longer the strike will last, the more there is pressure on both sides to make a deal, with things sure to worsen during the peak holiday season.
