Claiming delayed contract discussions and unfulfilled labor demands, Starbucks (SBUX, Financials) employees started a nine-state walkout. Starting Friday, the strike falls amid the Christmas season and may affect sales at a pivotal time for the coffee company.
Workers United represents 10,000 Starbucks employees distributed throughout 525 outlets. Initially, the strike began at Starbucks' headquarters, Chicago, Los Angeles, and Seattle. Workers in Ohio, Colorado, Pennsylvania joined the effort on Saturday; on Sunday, New York, New Jersey, and Missouri followed. Union leaders cautioned that the walkout may cause "hundreds" of shops to close by Tuesday, from about thirty closures prior to Sunday.
The union linked Starbucks' inability to fulfill its promise to create a framework for discussions by year-end and handle unresolved allegations on unfair labor practices to the walkout. It also attacked the business for presenting an economic plan devoid of quick pay increases after most recent discussions.
The union stressed in a statement on Saturday that its recommendations call for a 77% raise over a three-year contract and a 64% immediate minimum wage hike for hourly workers. Starbucks responded by characterizing the requests as unsustainable and said it has paid $113 million in CEO remuneration this year while worker pay had not matched inflation.
With more than 525 outlets unionized under Workers United, Starbucks has seen growing unionizing initiatives in recent years. The walk-out captures more general labor relations' difficulties amid growing living expenses and calls for better salaries and working conditions.
