Starbucks Workers Strike Expands as Union Seeks Pay Boost

What Happened?

A walkout at Starbucks by baristas expanded Tuesday with roughly 5,000 workers participating during the company's busy holiday stretch.

Starbucks Workers United said in a social media post that they anticipated the walkouts to expand to more than 300 stores in 45 states before the five-day work stoppage ends on Christmas Eve.

These walkouts included stores in Boston, Chicago, Los Angeles, New York City, Philadelphia, Denver, and Columbus, Ohio.

Pittsburgh, Seattle, and Portland also join that expanded list, as the union said they're 'fighting for a living wage, fair scheduling, and accessible benefits.'

This comes during a time when Starbucks' CEO Brian Niccol was introduced with a $113 million compensation package to lead the Seattle-based company.

Why it Matters

Walkout participants reportedly seek an immediate minimum hourly wage increase by as much as 64% and over 77% over the life of a three-year contract.

The union also alleges that the company has failed to honor a commitment made earlier this year to reach a labor agreement in 2024.

Starbucks instead proposed an economic package with no new wage increases for unionized baristas now, according to reports.

'After all Starbucks has said about how they value partners throughout the system, we refuse to accept zero immediate investment in baristas’ wages,' Workers Union president Lynne Fox said in a statement.

Starbucks told reporters that about 170 locations did not open Tuesday as originally planned.

As a result, only 3% of all U.S. locations were affected by the walkout that began last week in three cities.

Over 98% of Starbucks stores remained open, staffed by nearly 200,000 workers who continued 'to serve customers during the holidays,' Starbucks told MoneyWatch.

In a company memo, a Starbucks executive called the union's demands 'not sustainable.'

They reference that a combination of average pay and benefits equates to an average of $30 per hour for baristas who work at least 20 hours per week.

Companies are facing some pressure during this holiday season as workers are voicing their concerns surrounding fair wages and workplace environments.

Last week, thousands of Amazon drivers across four states in the U.S. went on strike after the Teamsters Union alleged Amazon's 'repeated refusal to follow the law and bargain.'

A study revealed that the number of striking workers in the U.S. doubled last year, as nearly 540,000 striking workers walked off their jobs.

How it Affects You

Consumers are often the ones left in the middle of these battles with things like delivery delays and supply shortages as the outcome.

One of the biggest potential labor disruptions could come as soon as mid-January for U.S. ports to reach a deal on automation.

The demands among workers are evolving daily as the U.S. economy still looks to recover in the labor market for the Fiscal Year 2025.