Starbucks recently broke a two-year streak of same-store sales declines, and past strikes have affected less than 1% of its stores|@SBWorkersUnited|X
Starbucks Workers United launched an open-ended strike on Thursday across more than 40 cities, targeting Red Cup Day, one of the coffee chain’s biggest annual sales events.
The union says over 1,000 baristas from more than 65 stores walked out after negotiations for a collective bargaining agreement stalled.
The strike lands during Starbucks’ crucial holiday season, a period the company relies on to lift US performance under new CEO Brian Niccol.
According to the company, past strikes have affected less than 1% of its stores. On Thursday morning, Starbucks said the work stoppage had minimal impact and reported stronger-than-expected early sales for Red Cup Day.
The coffee giant recently broke a two-year streak of same-store sales declines.
Workers United is demanding better hours, higher wages, and resolution of hundreds of unfair labor practice charges. It says that strikes were scheduled at more than 65 sites across 45 cities, and added that if Starbucks doesn’t reach a contract with the union, baristas across 550 unionized locations are expected to join the strikes.
The two sides have not held active contract talks since negotiations collapsed late last year, though they entered mediation in February. Baristas rejected Starbucks’ April proposal, and both sides accuse each other of blocking progress.
Seeing the growing labor disputes, investors have urged the company’s board to resume negotiations, as they are concerned about the potential impact on stock prices.
The union now represents more than 12,000 workers, though Starbucks says the figure is closer to 9,500. Baristas warn they are prepared to escalate the walkout and make this potentially the “largest, longest strike in company history” unless Starbucks presents a fair contract.
The strike comes after Starbucks shuttered several stores, including more than 50 unionized locations.