Workers at Starbucks stores in the United States began a five-day strike on December 20 due to disputes over wages and working conditions. Starbucks Workers United, the union representing more than 10,000 baristas, said on Dec. 21 that the strike initially closed Starbucks cafes in Los Angeles, Chicago and Seattle and later expanded to New Jersey, New York, Philadelphia and St. Louis.
Starbucks said the strike so far has not had a significant impact on its operations. The company operates more than 16,000 stores in the United States, of which only a few have closed.
Here’s what the union is asking for and what Starbucks has to say.
What are the demands of the Starbucks Workers Union?
The current negotiations between the union and Starbucks are focused on wage increases. The company said it has guaranteed annual wage increases for union workers of at least 1.5%. According to CBS News, if Starbucks offered a lower raise to non-union workers in any year, it would still give union workers a 1.5% raise. If companies raise wages, workers get paid more.
However, according to Starbucks, the union wants to increase the minimum wage for hourly workers by 64% immediately and by 77% over the course of the three-year contract. The union’s website says it wants all baristas to receive a base wage of at least $20 an hour — the company claims it pays more than $18 an hour.
The union also cited an unfair pay gap between its members and senior Starbucks bosses, including Chief Executive Brian Nicol.
According to the BBC, Nicol’s annual base salary is $1.6 million. He can also receive performance bonuses of up to $7.2 million and up to $23 million in Starbucks stock annually.
What is the counter at Starbucks?
The company says it not only pays its baristas more than $18 an hour but also offers “best-in-class benefits.”
“For baristas who work at least 20 hours per week, these fees add up to an average value of $30 per hour,” Starbucks said.
The union and Starbucks have been negotiating a national contract framework since April. According to the New York Times, they have reached two dozen tentative agreements on a range of issues including health and safety, attendance policies and ensuring workers can only be fired for just cause.
Starbucks spokesman Andrew Trull told The New York Times that union representatives “ended early” last week’s negotiations. He added: “Given the progress we have made so far, it is disappointing that they have not returned to the negotiating table.”
What does this strike mean for Starbucks?
Although Starbucks said The strike did not have a major impact on itExperts believe this could hamper the company’s Christmas sales.
The strike comes as Starbucks sales have been declining, particularly due to price increases and a boycott triggered by Israel’s war in Gaza.
“The company said global sales fell 7% between July and September. According to the BBC, the decline was even more severe in China, where sales fell 14% during the same period.
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