More than 1,000 unionized Starbucks workers are set to strike at 65 locations across the United States on Thursday as they protest the stagnation in labor negotiations with the company. This strike aims to coincide with Starbucks’ annual Red Cup Day, which is one of the busiest shopping days for the coffee chain, known for distributing free reusable cups to customers who purchase holiday drinks.
The strike, organized by Starbucks Workers United, will affect stores in 45 cities, including major metropolitan areas such as New York, Philadelphia, San Diego, and Seattle, where Starbucks originated. Union leaders state that there is currently no end date for the strike and that more stores may join if efforts to reach a contract agreement with Starbucks are not successful.
While Starbucks maintains that the majority of its approximately 10,000 company-owned stores will operate normally on the day of the strike, the actions of the unionized workers highlight ongoing frustrations. Approximately 550 of these stores are currently unionized, even as Starbucks has faced significant backlash after closing 59 unionized locations during a recent reorganization.
The core issue at the heart of the strike is the lack of a finalized contract agreement since the first successful unionization vote took place at a Buffalo store in 2021. In December 2023, Starbucks had promised to finalize negotiations by the end of 2024; however, the resignation of CEO Laxman Narasimhan in August 2022 has led to claims from the union that progress on the contract has stalled under the leadership of current chairman and CEO, Brian Niccol.
Starbucks employees demand better pay and hours, with many reporting concerns about long customer wait times and insufficient hours that don’t meet the threshold required for benefits. The union has reported numerous instances of unfair labor practices, including retaliatory firings of employees involved in union efforts, as well as recent policy changes limiting restroom access to paying customers, which have raised safety and privacy concerns.
In response, Starbucks has argued that it offers one of the best compensation packages in retail, with an average wage of $30 per hour and numerous employee benefits, including extensive paid family leave and full tuition coverage for higher education. According to Starbucks’ Chief Partner Officer, Sara Kelly, the company has been open to negotiations and believes a reasonable deal can be reached.
Historically, unionized workers have conducted strikes on significant days for Starbucks, including Red Cup Days the previous two years, although the company reported minimal disruption to operations during those events. Experts believe the visibility of such actions is crucial for raising awareness of employees’ concerns in the retail sector, where the employee-customer relationship is paramount.
Despite the challenges posed by the ongoing disputes, Starbucks has also reported a modest improvement in same-store sales, which saw a 1% increase in the July to September quarter—the first growth reported in nearly two years. This indicates that while labor issues persist, the company is achieving some success in its business operations, and its efforts to enhance customer experience are resonating with patrons. As negotiations continue, the actions of the striking workers are expected to maintain public attention on the ongoing labor disputes within one of America’s most recognizable brands.