Starbucks (SBUX) unionized baristas plan to go on strike next week in an effort to force management into contract negotiations to improve hours, increase take-home pay, and address union busting actions by the coffee chain.
As many as 12,000 Starbucks (SBUX) baristas are expected to participate in the strike across 25 states on November 13, coinciding with Red Cup Day, one of the company’s busiest days of the holiday season.
“Starbucks can improve operations and public perception right now by listening to the union baristas who are committed to building a better Starbucks. This multi-billion-dollar company can afford a fair contract that ensures the support and protections we need,” said Starbucks Workers United (SWU).
In an emailed statement to Bloomberg, Starbucks said, “We are disappointed that Workers United, who only represents around 4% of our partners, has voted to authorize a strike instead of returning to the bargaining table. When they’re ready to come back, we’re ready to talk.”
Starbucks’ (SBUX) reluctance to engage the union stems from management’s belief that SWU is making “financially unsustainable proposals” in what is already “the best job in retail” with average pay of more than $19 an hour and over $30 an hour when including benefits.
The company’s latest offer to the union in April included an annual pay raise of 2%, although did include any assurances that employees would get enough hours to qualify for benefits. The union rejected the offer and claims Starbucks (SBUX) has not made any counteroffers since.
Starbucks, however, says 85% of employees now get their preferred hours and shifts are more consistent and fully covered.
“The facts show people like working at Starbucks. Our turnover is at record lows – about half the industry average. And based on our latest surveys, a growing majority of partners recommend Starbucks as a great place to work.”
“Our customers can be assured that our partners will be ready to serve them at the vast majority of our 10,000 company-owned and 7,000 licensed locations across North America throughout the holiday season, regardless of the union’s plans,” Starbucks’ statement said.
Shares are unaffected by the recent development, trending higher for a gain of 3% over Tuesday’s close.