(This Dec. 21 story has been corrected to remove the word “contract” in paragraph 14.)
By Savyata Mishra, Gursimran Mehar and Renee Hickman
(Reuters) – Some members of the Starbucks (NASDAQ:) workers union, which represents more than 10,000 baristas, walked off their jobs in several U.S. cities on Friday, citing unresolved questions over wages, staffing and schedules.
The five-day strike that began Friday and closed Starbucks cafes in Los Angeles, Chicago and Seattle is expanding to Columbus (WA:), Denver and Pittsburgh through Saturday, the union said in a statement.
This is the latest in a series of industrial action that has gained momentum across service industries after workers in auto, aerospace and rail manufacturers won significant concessions from employers.
At Starbucks, the Workers United union, which represents employees at 525 stores across the U.S., said late Thursday that strikes would escalate daily and could reach “hundreds of stores” nationwide by Christmas Eve.
“It is estimated that 10 of the 10,000 stores operated by the company will not be open today,” Starbucks said, adding that there was no significant impact on store operations on Friday.
About 20 people joined a picket line at a Starbucks location on Chicago’s north side, where they were battered by snow and wind but cheered in response to the honking of passing cars.
A few confused customers tried to go into the closed store before the strikers began chanting, but union member Shep Searl said the reaction was mostly positive.
Searl said 100% of unionized workers at the Starbucks location in Chicago’s Edgewater neighborhood took part in the strike, and according to the workers, they were subjected to numerous unfair labor practices, including cover letters, “captive audience” meetings and firings.
The union member said they earned about $21 an hour, adding, “That would have been a great wage in 2013.”
Given inflation and the high cost of living in a big city, the baristas said it was an inadequate wage, especially since they rarely get a 40-hour week.
EMPLOYEE SNUB OFFER
Negotiations between the company and Workers United began in April based on a framework agreed to in February that could also help resolve numerous pending litigation.
The company said Thursday that it has held more than nine collective bargaining negotiations with the union since April and reached more than 30 agreements on “hundreds of issues,” including economic issues.
The Seattle-based company said it was ready to continue negotiations, claiming union delegates ended the bargaining session early this week.
However, the union said in a Facebook (NASDAQ:) post on Friday that Starbucks has not yet presented a serious economic proposal and there are less than two weeks until the end of the year.
The labor group also rejected an offer of no immediate wage increase and a guarantee of a 1.5% increase in future years.
“Workers United’s proposals call for an immediate 64% increase in the minimum wage for hourly associates and 77% over the life of a three-year contract. This is not sustainable,” Starbucks said Friday.
In response to Starbucks’ statement on the proposals, Michelle Eisen, Starbucks barista and negotiating delegate, said: “Starbucks’ characterization of our proposals is misleading and they know it. We are ready to finalize a framework that includes new investments in baristas in the first year of the contract.”
Separately, the barista union said Friday that it had filed a new labor practices lawsuit against the coffeehouse, alleging that Starbucks “refused to negotiate and negotiated in bad faith” over economic issues.
Hundreds of complaints have been filed with the National Labor Relations Board (NLRB) accusing Starbucks of unlawful labor practices such as firing union supporters and closing stores during labor disputes. Starbucks has denied wrongdoing and said it respects workers’ rights to decide whether to join a union.
WORKING ON A CHANGE
Last month, the NLRB said Starbucks violated the law by telling workers at its flagship Seattle coffee shop that they would lose benefits if they joined a union.
“The strike comes at one of the busiest times of the year for Starbucks, which could compound its impact while bringing unwanted public scrutiny over the company’s labor practices,” said Emarketer analyst Rachel Wolff.
The coffee chain is working on a turnaround under its newly appointed top boss Brian Niccol, who wants to restore “coffee house culture” by, among other things, renewing the cafés and simplifying the menu.
“Considering how much Starbucks is already struggling to attract customers, it cannot afford the negative publicity – or impact on sales – that the strike might bring,” Wolff said.
The Starbucks workers’ strike comes the same week that Amazon.com (NASDAQ:) workers walked off their jobs at seven U.S. facilities on Thursday during the holiday shopping rush.
There were 33 work stoppages in 2023, the most since 2000, although far fewer than in previous decades, data from the U.S. Bureau of Labor Statistics showed.
