Starbucks Unionized Workers Plan Strike on Red Cup Day Amid Contract Dispute

Unionized Starbucks employees have announced plans to strike on November 13, coinciding with the company's annual Red Cup Day promotion, unless a contract agreement is finalized.

Starbucks Workers United, representing baristas at approximately 550 of the company's 10,000 U.S. stores, stated that workers in at least 25 cities intend to participate in the strike. The union indicated that more locations could join if substantial progress toward a contract is not achieved.

The union and Starbucks have been engaged in contract negotiations since 2021 without reaching an agreement. In December 2023, Starbucks committed to finalizing a contract by the end of 2024. However, the departure of CEO Laxman Narasimhan and the appointment of Brian Niccol as chairman and CEO have led to stalled progress, according to the union.

Starbucks expressed disappointment over the planned strike, emphasizing its existing compensation and benefits.

In a letter to employees, Starbucks' Chief Partner Officer Sara Kelly highlighted the union's demands, including a 65% immediate pay increase and a 77% increase over three years, along with additional payments for weekends and promotional days. Kelly described these proposals as not serious or evidence-based.

Unionized baristas have raised concerns about not consistently receiving the 20 hours per week required to qualify for benefits. They also pointed to CEO Brian Niccol's $95.8 million compensation in 2024 as evidence of skewed priorities.

The planned strike follows previous labor actions, including a walkout by thousands of workers at more than 200 stores on Red Cup Day in 2023 and a five-day strike ahead of Christmas that year, which led to the closure of 59 U.S. stores.

Despite the potential strike, Starbucks anticipates that most company-owned stores, as well as 7,000 licensed locations, will remain operational.