Starbucks workers kick off 65-store US strike on company’s busy Red Cup Day

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FILE - A Starbucks sign is seen on, Jan. 16, 2025, in Houston.FILE - A Starbucks sign is seen on, Jan. 16, 2025, in Houston. Photo by Ashley Landis /AP

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More than 1,000 unionized Starbucks workers plan to strike at 65 U.S. stores Thursday to protest a lack of progress in labor negotiations with the company.

Financial Post

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The strike was intended to disrupt Starbucks’ Red Cup Day, which is typically one of the company’s busiest days of the year. Since 2018, Starbucks has given out free, reusable cups on that day to customers who buy a holiday drink.

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Starbucks Workers United, the union organizing Starbucks baristas, said stores in 45 cities would be impacted, including New York, Philadelphia, Minneapolis, San Diego, St. Louis, Dallas, Columbus, Ohio, and Starbucks’ home city of Seattle. There is no date set for the strike to end, and more stores are prepared to join if Starbucks doesn’t reach a contract agreement with the union, organizers said.

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Starbucks emphasized that the vast majority of its U.S. stores would be open and operating as usual Thursday. The coffee giant has 10,000 company-owned stores in the U.S., as well as 7,000 licensed locations in places like grocery stores and airports.

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Around 550 company-owned U.S. Starbucks stores are currently unionized. More have voted to unionize, but Starbucks closed 59 unionized stores in September as part of a larger reorganization campaign.

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Here’s what’s behind the strike.

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A stalled contract agreement

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Striking workers say they’re protesting because Starbucks has yet to reach a contract agreement with the union. Starbucks workers first voted to unionize at a store in Buffalo in 2021. In December 2023, Starbucks vowed to finalize an agreement by the end of 2024. But in August of last year, the company ousted Laxman Narasimhan, the CEO who made that promise. The union said progress has stalled under Brian Niccol, the company’s current chairman and CEO.

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Workers want higher pay, better hours

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Workers say they’re seeking better hours and improved staffing in stores, where they say long customer wait times are routine. They say too many workers aren’t getting the required 20 hours per week they need before Starbucks’ benefits kick in. They also want higher pay, pointing out that executives like Niccol are making millions.

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The union also wants the company to resolve hundreds of unfair labor practice charges filed by workers, who say the company has fired baristas in retaliation for unionizing and has failed to bargain over changes in policy that workers must enforce, like its decision earlier this year to limit restroom use to paying customers.

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Starbucks stands by its wages and benefits

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Starbucks says it offers the best wage and benefit package in retail, worth an average of $30 per hour. Among the company’s benefits are up to 18 weeks of paid family leave and 100% tuition coverage for a four-year college degree. In a letter to employees last week, Starbucks’ Chief Partner Officer Sara Kelly said the union walked away from the bargaining table in the spring.

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