In the U.S. Northest, Baristas Bust Up Holiday Promotion in Contract Stalemate
More than 1,000 unionised baristas in some 65 stores across over 40 U.S. cities hit the picket lines on Nov. 13, with the mass walkout strategically timed to coincide with Starbucks’s highly-anticipated “Red Cup Day” holiday promotion. Organized by Starbucks Workers United, the protest calls on the chain to reach its initial collective-bargaining agreement, increase staffing and pay, and address what it said were unfair-labor practices. The timing is strategic, taking aim at one of the busiest retail days of the year for Starbucks.
Starbucks said in a statement that nearly all of its stores are open and its average hourly pay for partners (its term for employees) tops $30 when including benefits. The company also noted that a small percentage of its U.S. workforce is unionised. Meanwhile, the union says negotiations are at a standstill and that the strike could widen unless there is movement.
Turnaround Pressures Collide With Unionised Labour Push
The dispute comes at a tough time for Starbucks’ U.S. business, which is trying to turn around after years of flat or declining same-store sales, closing underperforming stores and changes among its executive suite. The union’s “Red Cup Day” strike is designed to raise its leverage and public profile on a high-visibility occasion for Starbucks.
Such strategic timing is less about completely suspending operations than making as much noise as possible to draw attention from consumers and the media, labour analysts say. There is no end date for the strike, or guarantee that it would not spread to more of its stores, and either side may be heading into what could become an extended showdown at a crucial point in the holiday shopping season.
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