Starbucks union members and their supporters, including baristas who just quit their jobs, picket in front of the store, effectively closing down their local branch, in New York City, February 28, 2025.
Andrew Lichtenstein Corbis News | Getty Images
starbucks The union said on a conference call with investors Friday that Workers United presented the company with a comprehensive contract proposal last month, as baristas seek to sign their first collective bargaining agreement with the coffee giant.
Here’s what the barista asked for in that proposal:
Protects union baristas from discrimination, unfair dismissal, and temporary or permanent store closures. The starting wage floor will be $17 an hour, down from the previous proposal of $20 an hour, but still higher than the company’s current starting wages of $15.25 to $16 an hour in 43 states. 4% salary increase every year. Process for resolving employee complaints by baristas, management, and union representatives. Union-approved dress code. At least three employees will be on the requirements floor at all times to provide mandatory staffing and safety protection. Before hiring new baristas, give existing employees the obligation to provide hours of operation. Resolved hundreds of unresolved unfair labor practice charges.
The union said Starbucks has not yet responded to the proposal.
The coffee giant told CNBC it hopes to resume negotiations with Workers United as early as this month.
“Starbucks resumed face-to-face negotiations with Workers United on March 30 and offered to remain available through April,” Starbucks spokesperson Jaycee Anderson said in a statement.
Workers United accounts for about 6% of Starbucks’ company-owned stores in the U.S., according to regulatory filings.
The announcement comes months after negotiations between the two parties hit a wall. The last formal negotiation between Starbucks and the union was in December 2024. Months later, the parties met for mediation, but hundreds of barista representatives rejected the company’s stimulus package in April.
Baristas in more than 40 cities went on a multi-week, open-ended strike during the holiday season. The work stoppage caused the coffee chain to temporarily close dozens of stores during its busiest season, but the company said it did not have a material impact on its business.
The strained relationship between Starbucks and its baristas is likely to be the center of attention at the company’s annual shareholder meeting, scheduled for March 25th.
A group of investors led by the union-affiliated SOC Investment Group is calling on shareholders to vote against the re-election of board members Jorgen Vig Knudstorp and Beth Ford because of their oversight role in relation to the company’s labor relations. Glass Lewis, a proxy advisory firm, recommended that Mr. Ford vote against re-election as chairman of the Nominating and Corporate Governance Committee.
“Starbucks’ Board of Directors has the skills and experience necessary to effectively oversee our strategy, including human capital management, which is critical to our ability to drive growth and serve our customers,” Anderson said in a statement to CNBC.
The company’s long-running battle with its baristas is a potential hurdle for Starbucks as it tries to turn around its struggling U.S. business. During the company’s holiday quarter, store foot traffic increased for the first time in two years.
In its latest annual report, Starbucks cited potential risks going forward, including further business interruptions and damage to its reputation and brand.
