Workers United, the union representing Starbucks employees, has voted against the latest contract proposal from the coffee chain, which promised an annual wage increase of at least 2%. Among the 490 baristas representing over 550 unionized Starbucks stores in the U.S., 81% rejected the proposal due to its lack of adjustments to economic benefits such as healthcare and the absence of an immediate pay raise.
The union stated that Starbucks' current proposal is insufficient to finalize an agreement. Starbucks responded by claiming the union presented an incomplete single-store contract framework for voting, which has delayed the mutual agreement process. Currently, the company pays baristas an average hourly wage of over $19, with total compensation including benefits reaching approximately $30 per hour. The company had proposed that annual salary increases for baristas would not be less than 2%.
After agreeing in February to introduce a mediator to help resume stalled negotiations, both parties have been progressing in contract talks. They have reached preliminary agreements on several key contract issues, such as health and safety measures. However, the union noted in a memorandum that the latest proposal is still "not good enough." Recently, the union and Starbucks agreed to withdraw lawsuits filed against each other.
