Starbucks Faces Turmoil Again: "We Can't Live Like This" as U.S. Union Deploys Unprecedented Strike Card

The Starbucks union in the United States has decided to resort to a general strike after four years of delayed collective bargaining. The union announced that if negotiations are not concluded within a week, it will launch the largest simultaneous strike in its history, starting on the 13th (local time) in 25 cities across the country. Notably, the strike date coincides with Starbucks' signature year-end event, 'Red Cup Day,' which is expected to impact the company’s year-end sales.

The Starbucks union in the United States announced that if a collective bargaining agreement is not reached within a week, they will go on strike starting from the 13th. Starbucks website

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According to Bloomberg News on the 5th, the Starbucks union, Starbucks Workers United, announced that thousands of members participated in a vote, with 92% approving the strike. The strike will represent employees at about 550 stores out of the 10,000 company-operated Starbucks locations nationwide. The union warned, "This will be the largest strike we have ever prepared," adding, "If the company does not return to the bargaining table, the strike could be extended indefinitely."

The union is putting additional pressure on the company by designating 'Red Cup Day,' one of Starbucks' highest annual sales days, as the strike date. This event is a major annual promotion to advertise Starbucks’ year-end menu, drawing large crowds and resulting in a significant sales surge each year.

Baristas are making drinks at a Starbucks store in Shanghai, China. Photo by Reuters Yonhap News

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Since its formation in 2021, the Starbucks union has failed to secure a collective bargaining agreement for four consecutive years. In April, the union rejected the company’s proposal for a 2% annual wage increase. The proposal also included a clause excluding certain benefits for employees working below a set number of hours. The union criticized the offer, stating, "The proposed increase is insignificant compared to the company’s daily sales of approximately 100 million dollars."

Currently, the average hourly wage for Starbucks employees, including pay and benefits, is about 30 dollars. However, the union argues, "This level of compensation is not enough to make a living," and pointed out that "only the CEO enjoys the 'best job in retail.'" Jasmine Relly, a barista at a Starbucks store in Buffalo, New York, said, "Our fight is to make Starbucks jobs truly the 'best jobs in retail.' Right now, only the CEO holds that position."

Starbucks has cautioned against exaggerating the scale of the strike, stating that "only 4% of all employees are participating." Starbucks spokesperson Jesse Anderson said, "It is unfortunate that the union has chosen to strike instead of engage in dialogue," and added, "We are ready to return to the bargaining table at any time."

A cup is placed on the counter of a Starbucks store in Manhattan, New York, USA. Photo by Reuters Yonhap News Agency

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The company also emphasized, "Starbucks offers industry-leading wages and benefits," and described the union’s demands as unrealistic. According to the company, out of more than 200,000 employees at 10,000 company-operated stores in North America, only about 9,500 are union members.

On the other hand, the union countered that there have been over 100 reports of unfair labor practices by the company. The U.S. National Labor Relations Board has received more than 100 complaints against Starbucks for alleged unfair labor practices, including firing union activists, closing stores, and refusing to bargain. Starbucks has denied all allegations.

Starbucks headquarters maintains that the strike will have only a limited impact on operations. The company stated, "Most of our 10,000 company-operated and 7,000 licensed stores in North America will remain open," assuring customers that they will continue to receive service without issue. Starbucks also highlighted, "We receive more than one million job applications annually and maintain a turnover rate that is half the industry average. As these facts show, employees enjoy working at Starbucks."

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