Employees and authorities at Starbucks have been at odds with each other for a long time. As a result, a strike was called to demand improved benefits and an immediate increase in wages.
The demonstrations started on December 20, 2024, in cities like Los Angeles, Chicago, and Seattle but have reportedly spread to more than 43 states and 300 stores, from which 5000 baristas walked off their jobs. Employees at Iowa City and Davenport also joined in the protest.
The strike was expected to last till Christmas Eve but extended to 10 major US cities. NDTV reported that workers across 500 stores have decided to unionize. Meanwhile, some stores saw baristas returning to work on December 25, 2024. NewsNation reported that the five-day strike had ended and the employees were willing to bargain with the company.
Starbucks Workers United, the union that called the strike, has accused the café company of not upholding a commitment made in February 2024 to formulate a labor agreement. Taking to X on December 24, 2024, the Union wrote:
“We’re fighting for a living wage, fair scheduling, and accessible benefits at a time when Starbucks seems to prefer investing in CEO Brian Niccol’s $113 million compensation package. The company's last economic proposal - NO immediate wage increases - is unacceptable.”
They have also been protesting the alleged unfair labor practices by the café giant. A protestor and an employee Lauren O’Hear claimed that the coffee shops get over 100 orders daily and yet they are poorly staffed. Another employee stated that they could not rely on companies to be ‘human’ and that they must bring humanity to the companies.
What did Starbucks say about the workers' demands?
Starbucks released a statement previously stating that it already offers pay and benefits equaling $30 per hour. However, the Union was not ready to bargain then. As per NDTV, The employees have demanded a base rate of $20 per hour be fixed for baristas and that for supervisors should be $25.40 per hour.
Besides that, they demanded a 5% annual raise in cost of living adjustments. They want an immediate 64% pay hike for the hourly workers. The workers also demand 100% healthcare by the employer, automatic 401(K) retirement plan enrolment, and paid sick leaves of 13 days for all employees.
Starbucks has called these demands unsustainable. Not only that but on December 23, 2024, the coffee giant reportedly understated the strikes through a public letter by Sara Kelly, Executive President and Chief Partner Officer.
“The overwhelming majority of Starbucks stores across the country have opened as planned and are busy with customers enjoying the holidays. We have over 10,000 company-operated stores across the U.S. that provide work for partners and serve our customers. Some of the stores that temporarily closed earlier in the weekend have reopened as partners sought to come back to work.”
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As per Reuters, earlier, the workers' union rejected a proposal offering no immediate wage increases but a 1.5% raise in future years, criticizing Starbucks for not presenting a "serious economic proposal."
The news outlet reported that the cafe company was willing to resume talks regarding the bargain, though it accused union representatives of ending the previous session prematurely.
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