Workers at Starbucks stores in the United States began a five-day strike on December 20 in a dispute over pay and working conditions. The strike which initially closed Starbucks cafes in Los Angeles, Chicago and Seattle, expanded to New Jersey, New York, Philadelphia and St Louis, Starbucks Workers United — a union representing more than 10,000 baristas — said on December 21.
Starbucks has said the strike has so far not significantly affected its operations. The company runs more than 16,000 stores in the US, and only a handful of them have shut down.
Here is a look at the demands of the union, and what Starbucks is saying.
What are the demands of Starbucks Workers United?
The current negotiations between the union and Starbucks are focused on pay rises. According to the company, it has assured an annual pay increase of at least 1.5% for unionised workers. If Starbucks provided a lower increase to non-union workers in any given year, it still would give union workers a 1.5% increase, according to a report by CBS News. In case the company raises the wages by more, the workers would get the higher amount.
The Workers United, however, wants to hike the minimum wage for hourly workers by 64% immediately and 77% over the life of a three-year contract, according to Starbucks. The union’s website says that it wants a base wage of at least $20 an hour for all baristas — the company claims to pay more than $18 an hour.
The union has also pointed out the disparity between unfair pay disparity between its members and senior Starbucks bosses, including chief executive Brian Niccol.
Niccol’s annual base pay is $1.6 million, according to a report by the BBC. He could also get a performance-related bonus of as much as $7.2 million and up to $23 million per year of Starbucks shares.
What is Starbucks’ counter?
The company has said it not only pays more than $18 an hour to baristas but also “best-in-class benefits.”
“Taken together they are worth an average of $30 per hour for baristas who work at least 20 hours per week,” Starbucks said.
The Workers United and Starbucks have been negotiating a national contract framework since April. They have reached more than two dozen tentative agreements on a host of issues such as health and safety, attendance policies, and ensuring that workers can be fired only for just cause, according to a report by The New York Times.
Andrew Trull, a Starbucks spokesman, told the NYT that union delegates “prematurely ended” last week’s negotiations. “It is disappointing they did not return to the table given the progress we have made to date,” he added.
What does the strike mean for Starbucks?
Although Starbucks has said that the strike has not impacted it significantly, experts believe that it can hamper the company’s Christmas sales.
The strike has come at a time when Starbucks has been witnessing a drop in sales, particularly due to price increases and boycotts sparked by Israel’s war against Gaza.
“The company said global sales tumbled by 7% between July and September. The downturn was more dramatic in China, where sales fell 14% for the same period,” according to a report by the BBC.
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