December 23rd 2024.
According to the union representing Starbucks employees, as of Monday afternoon, 59 stores had been forced to close due to a five-day strike initiated by baristas. The strike initially began in Los Angeles, Chicago, and Seattle, the home of Starbucks, last Friday. However, on Monday, it had expanded to include stores in Boston, Dallas, and Portland. Over the weekend, workers in New York, Denver, Pittsburgh, and other cities also joined the strike.
The main reason for this strike is the dissatisfaction with the lack of progress in contract negotiations with the company. The union, known as Starbucks Workers United, has been working towards unionization since 2021 and claims that the company has not fulfilled its promise made in February to reach a labor agreement this year. Additionally, the union is demanding that Starbucks resolves various legal issues, including the numerous unfair labor practice charges that have been filed with the National Labor Relations Board. In fact, since 2021, employees at 535 Starbucks locations across the US have voted to join the union.
The timing of this strike is crucial, as it coincides with one of the busiest periods of the year for Starbucks. However, the company has released a statement claiming that the strike has not significantly impacted their store operations. With approximately 10,000 company-operated stores in the US, Starbucks stated that they respect their employees' right to engage in lawful strike activity and appreciate the support and dedication of the thousands of employees across the country who are still delivering the Starbucks experience to customers.
Negotiations between the two sides have been ongoing since spring, but it seems that they have hit a roadblock when it comes to economic issues. According to Starbucks, they have committed to providing an annual pay increase of 1.5% or more to their unionized workers. Even if the company were to offer a lower increase to non-union workers in a particular year, they would still give union workers a minimum of a 1.5% raise.
Starbucks has stated that their baristas in the US earn an average of $18 per hour. However, taking into account benefits such as healthcare, free college tuition, and paid family leave, the company's pay package for baristas who work at least 20 hours per week is worth an average of $30 per hour. On the other hand, workers argue that they deserve better compensation, especially considering that Starbucks' new Chairman and CEO, Brian Niccol, who took over in September, may earn over $100 million in his first year on the job.
As negotiations continue, it remains to be seen if the strike will come to an end and if Starbucks will meet the demands of their employees. Until then, the strike continues to affect operations in various stores across the country, with both sides standing firm in their positions.
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