By Savyata Mishra, Gursimran Mehar and Renee Hickman
(Reuters) – Some members of the Starbucks (NASDAQ: ) union representing more than 10,000 baristas walked off the job in several U.S. cities on Friday, citing unresolved issues over wages, workers and schedules.
The five-day strike, which began on Friday and closed Starbucks cafes in Los Angeles, Chicago and Seattle, will extend until now. Columbus (WA:), Denver, and Pittsburgh through Saturday, the union said in a statement.
This is the latest in a series of labor actions that have surged across the service industries following a period when workers in the auto, aerospace and rail industries won huge bonuses from employers.
At Starbucks, the Workers United union, which represents workers at 525 stores across the US, said Thursday night that walkouts would increase daily, and could reach “thousands of stores” across the country by Christmas.
“It is estimated that 10 of the 10,000 company-operated stores were not open today,” Starbucks said, adding that there was no major impact on store operations on Friday.
About 20 people joined the picket line at a Starbucks on Chicago’s north side, battered by snow and wind, but cheering as they responded to the honks of passing cars.
A few confused customers tried to enter the shuttered store before the strikers began chanting, but union member Shep Serl said the response was overwhelmingly positive.
Searl said 100% of the unionized workers at the Starbucks location in Chicago’s Edgewater area participated in the strike, and according to the workers, they have been following many unfair practices including handouts, “captive audience” meetings and firings. .
This union member said they make about $21 an hour and added, “that would be a big wage in 2013”.
It’s not enough pay, the baristas say, given inflation and the high cost of living in the big city, especially since they rarely get 40-hour work weeks.
WORKERS SNUB OFFER
Negotiations between the company and Workers United began in April, based on a framework agreed in February, which could help resolve many of the pending legal disputes.
The company said on Thursday that it has held more than nine negotiations with the union since April, and reached more than 30 agreements on “hundreds of topics”, including the economy.
The Seattle-headquartered company said it is ready to continue negotiations, saying union delegates ended the bargaining session early this week.
The union, however, on Facebook (NASDAQ:) posted on Friday that Starbucks had yet to present a critical economic proposal with less than two weeks left until the year-end deadline.
The labor group also rejected a promise of no immediate pay rises and a guarantee of 1.5% increases over the next few years.
“Workers United’s proposals call for an immediate 64% increase over the minimum hourly wage for associates, and 77% over the course of a three-year contract. This is unsustainable,” Starbucks said Friday.
Separately, the baristas union said Friday it has filed a new lawsuit against the coffee service, alleging Starbucks “refused to negotiate and engaged in bad faith bargaining” over economic issues.
Hundreds of complaints have been filed with the National Labor Relations Board (NLRB), accusing Starbucks of illegal practices such as firing union supporters and closing stores during labor strikes. Starbucks has denied wrongdoing and said it respects workers’ right to choose whether to join a union.
WORKING WITH CHANGE
Last month, the NLRB said Starbucks broke the law by telling Seattle cafe workers 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 increase its impact when it brings unwanted public scrutiny to the company’s operations,” said Emarketer analyst Rachel Wolff.
The coffee chain is working on a turnaround under its newly appointed boss, Brian Niccol, who aims to restore “coffee house culture” by remodeling cafes and simplifying its menu among other measures.
“Given how hard Starbucks is already struggling to win over customers, it can’t afford the negative publicity — or impact on sales — that a strike would bring,” Wolff said.
The Starbucks workers’ strike comes the same week that Amazon.com (NASDAQ: ) workers at seven US locations walked off the job Thursday, during the holiday shopping rush.
There were 33 job cuts in 2023, the most since 2000, though far lower than in previous decades, data from the US Bureau of Labor Statistics showed.
