Starbucks Workers United launched an indefinite strike in more than 40 cities on Thursday in observance of Red Cup Day, one of the biggest sales days of the year for the chain.
The protest, which the union says involves more than 1,000 baristas at more than 65 stores, comes after Workers United voted to go on an indefinite strike after baristas and the coffee giant failed to reach a collective agreement.
The strike could hurt Starbucks’ business during the holiday season, which typically boosts sales and will be key to the chain’s plan to turn around its U.S. performance under new CEO Brian Niccol. Starbucks ended a nearly two-year streak of declining same-store sales in its most recent reported quarter. Past strikes have affected less than 1% of its stores, the company said.
Starbucks said the work stoppage had limited effects on its main sales day Thursday morning.
“The day is off to an incredible start – based on what we’ve seen this morning, we’re on track to exceed our sales expectations for the day at company-operated cafes across North America,” Starbucks spokeswoman Jaci Anderson told CNBC on Thursday.
The union is pushing for improved hours, higher wages and a resolution to hundreds of unfair labor practice charges filed against Starbucks. The two sides have not engaged in active negotiations to reach an agreement after negotiations broke down late last year.
Starbucks and the union entered into mediation in February and hundreds of barista delegates voted against the economic package proposed by Starbucks in April. Both sides have blamed each other for their failure to reach a negotiating agreement and say they are ready 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 represents just 9,500 workers at 550 cafes.
The baristas say they are prepared to escalate the work stoppage, threatening to make it “the largest and longest strike in company history if Starbucks cannot reach a fair union contract and resolve accusations of unfair labor practices.” He is looking for new proposals that answer his main questions to finalize a contract.
“If Starbucks continues to obstruct a fair contract and refuse to end union fighting, they will see their business grind to a halt,” Starbucks Workers United spokeswoman Michelle Eisen, a former barista who spent 15 years with the company, said in a statement. “No contract, no coffee, it’s more than a slogan: it’s a commitment to interrupt Starbucks’ operations and profits until a fair union contract and an end to unfair labor practices are achieved. Starbucks knows where we stand.”
In response to the results of last week’s strike vote, Starbucks previously said it would be prepared to serve customers at its nearly 18,000 company-operated and licensed stores during the holiday season.
“Starbucks offers the best work in retail, averaging over $30 an hour in pay and benefits for hourly partners. Workers United, which represents only 4% of our partners, has chosen to walk away from the bargaining table. We have asked them to come back several times. If they are willing to come back, we are willing to talk. We believe we can reach a reasonable agreement quickly,” Anderson said in a statement Monday.
In a letter to workers regarding the strike authorization vote last week, Sara Kelly, a managing partner at Starbucks, echoed the belief that the parties could reach an agreement quickly.
“For months, we were at the negotiating table, working in good faith with Workers United and delegates across the country to reach agreements that made sense for the partners and for the long-term success of Starbucks,” Kelly said. “We have reached more than 30 agreements in principle on complete articles of the contract.”
“Our commitment to negotiate has not changed,” she added. “Workers United walked away from the table, but if they are willing to come back, we are willing to talk. We believe we can reach a reasonable agreement quickly.”