Starbucks Workers United launched an open-ended strike in more than 40 cities Thursday on Red Cup Day, one of the chain’s biggest sales days of the year.
The protest, which included more than 1,000 baristas from more than 65 stores, came after Workers United voted to authorize an indefinite strike after baristas and major coffee companies failed to reach a collective bargaining agreement, according to the union.
The strike could hurt Starbucks’ performance during the busy holiday season, which typically boosts sales and is key to the chain’s plans to turn around its U.S. performance under new CEO Brian Nicol. Starbucks ended nearly two consecutive years of same-store sales declines in its most recently reported quarter. The company says less than 1% of its stores have been affected by past strikes.
As of late Thursday morning, Starbucks said the suspension had limited impact on key sale days.
“It’s a great start to the day. From what we’ve seen this morning, we’re on track to exceed our sales expectations for the day across all of our coffee houses in North America,” Starbucks spokesperson Jaycee Anderson told CNBC on Thursday.
The union is demanding better working hours, higher wages and resolution of hundreds of unfair labor practice charges against Starbucks. Since negotiations between the two sides broke down at the end of last year, the two sides have not actively negotiated a contract.
Starbucks and the union went to arbitration in February, and hundreds of barista representatives voted against Starbucks’ proposed stimulus package in April. Both sides have held the other party responsible for not reaching a negotiated agreement and have said they are willing to negotiate.
Workers United, which began organizing at Starbucks in 2021, says it now represents more than 12,000 workers in more than 550 stores. The company told CNBC last week that the union only represents 9,500 employees at 550 cafes.
The baristas say they are prepared to extend the stoppage, threatening to make this the “largest and longest strike in the company’s history” unless Starbucks reaches a fair union contract and resolves the unfair labor practice charges. The company is seeking new proposals that address the biggest issues in closing the deal.
Michelle Eisen, a spokeswoman for Starbucks Workers United and a former barista who worked for the company for 15 years, said in a statement: “If Starbucks continues to refuse to give us a fair contract and refuse to end union-busting practices, our business will stall.” “No contract, no coffee is just a tagline. It’s a pledge to suspend Starbucks operations and profits until we win a fair union contract and an end to unfair labor practices. Starbucks knows where we stand.”
Following the outcome of last week’s strike vote, Starbucks previously said it was ready to serve customers at its approximately 18,000 company-operated and licensed stores this holiday season.
“Starbucks offers some of the best jobs in the retail industry, with an average hourly wage of more than $30 an hour and benefits for hourly partners.Workers United, which makes up just 4% of our partners, is committed to staying away from the bargaining table. We have asked them multiple times to come back, and if they are ready to come back, we are ready to talk and we believe we can move quickly to a reasonable deal,” Anderson said in a statement Monday.
In a letter to workers regarding last week’s strike authorization vote, Starbucks Chief Partner Officer Sarah Kelly reiterated her belief that the two companies could quickly reach an agreement.
“We have been at the table for months working in good faith with Workers United and representatives from across the country to reach an agreement that makes sense for our partners and the long-term success of Starbucks,” Kelly said. “More than 30 preliminary agreements have been reached regarding full contract terms.”
“Our approach to negotiations remains unchanged,” she added. “Workers United has walked away from the table, but if they are ready to come back, we are ready to talk. We believe we can move quickly towards a reasonable agreement.”
