Starbucks Workers United has launched an open-ended strike in more than 40 cities on “Red Cup Day,” one of the coffee chain’s biggest annual sales events. The union says over 1,000 baristas are participating in the walkout.
This is the third strike to hit the chain since the union launched four years ago. Unionized baristas are reportedly calling for better pay and increased staffing.
The strike is likely to hurt business during the holiday season, which typically provides a major sales boost and is key to plans to turn around performance in the U.S. under new CEO Brian Niccol. In its most recently reported quarter, Starbucks had broken a nearly two-year streak of same-store sales decline. The company claims that past strikes have impacted less than 1% of its outlets.
The union is pushing for improved hours, higher wages, and the resolution of hundreds of unfair labor charges against Starbucks. The two parties have not been in active negotiation.
Read: Starbucks baristas strike, affecting stores in at least 25 cities (
The baristas say they are prepared to escalate the strike, and that they could make it “the largest, longest strike in company history if Starbucks fails to deliver a fair union contract and resolve unfair labor practice charges.” It is seeking new proposals to address its top issues to finalize a contract.
“If Starbucks keeps stonewalling a fair contract and refusing to end union-busting, they’ll see their business grind to a halt,” Starbucks Workers United spokesperson Michelle Eisen, a former barista who spent 15 years at the company, said in a statement. “No contract, no coffee is more than a tagline — it’s a pledge to interrupt Starbucks operations and profits until a fair union contract and an end to unfair labor practices are won. Starbucks knows where we stand.”
Starbucks responded to last week’s strike by saying it will be ready to serve customers across its nearly 18,000 company-operated and licensed stores this holiday season.
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“Starbucks offers the best job in retail, including more than $30 an hour on average in pay and benefits for hourly partners. Workers United, which represents only 4% of our partners, chose to walk away from the bargaining table. We’ve asked them to return—many times. If they’re ready to come back, we’re ready to talk. We believe we can move quickly to a reasonable deal,” Starbucks spokesperson Jaci Anderson told CNBC in a statement Monday.
Sara Kelly, chief partner officer at Starbucks said that the two sides could reach an agreement swiftly. “For months, we were at the bargaining table, working in good faith with Workers United and delegates from across the country to reach agreements that make sense for partners and for the long-term success of Starbucks,” Kelly said. “We reached more than 30 tentative agreements on full contract articles.”