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Starbucks Union Votes to Strike as Contract Negotiations Reach Critical Stage

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Starbucks Union Votes to Strike as Contract Negotiations Reach Critical
Starbucks workers hold a rally on October 05, 2022 in New York City. Getty Images/Michael M. Santiago

Starbucks workers have taken a major step toward a strike, with 98% of unionized baristas voting to approve the action.

This vote comes as the coffee giant and its workers' union, Workers United, face a critical stage in contract negotiations that have been ongoing for months.

Starbucks Union Talks Enter Final Round Amid Disputes Over Pay and Labor Practices

The union and Starbucks have spent much of this year negotiating, with hundreds of bargaining hours and dozens of tentative agreements. However, despite these efforts, key issues remain unresolved, particularly around worker pay and benefits.

The union has emphasized that Starbucks has not yet presented a comprehensive economic package that would adequately address these concerns. There are also still many unresolved cases of unfair labor practices, which have added tension to the discussions.

According to CNBC, the upcoming negotiations, which are scheduled for Tuesday, could be a turning point. Both sides are aiming to reach a "foundational framework" for a contract.

This session marks the final bargaining opportunity of the year, and both parties are hoping to find common ground.

However, the strike authorization vote signals a deep frustration from workers, who have been pushing for better pay, staffing, and work schedules.

Starbucks has responded by expressing disappointment over the union's decision to consider a strike. A company spokesperson highlighted that over 30 agreements have already been made since April, many of which address important issues raised by Workers United, including some economic concerns.

The company maintains that it is committed to reaching a final agreement with the union, pointing to the productive nature of their ongoing talks.

Despite this, the relationship between Starbucks and the union has been tense, particularly after the rise of unionization efforts in Starbucks stores across the US. The company initially fought against the union movement, which led to public backlash.

Starbucks Faces Union Strike Threat as CEO Pledges Good-Faith Bargaining

Former CEO Howard Schultz even testified before Congress about the company's stance. In contrast, current CEO Brian Niccol, who took over in September, has pledged to engage in good-faith bargaining and resolve the issues at hand.

The situation has also been complicated by Starbucks' recent announcement to increase paid parental leave for US workers starting in March. While the expansion of benefits is seen as a positive move, it comes amidst reports that baristas may receive smaller pay raises next year due to a sales slump at US Starbucks locations.

Starbucks Workers United represents over 525 company-owned stores, and their bargaining efforts reflect the growing union presence in the company, FoxBusiness said.

In the past three years, more than 500 Starbucks locations have voted to unionize, marking a significant shift in the company's labor landscape.

With tensions rising and no resolution in sight, the threat of a strike looms as the union and Starbucks face a deadline to finalize a deal. Workers United has made it clear that their top priority is securing better pay, work conditions, and protections for baristas, who are critical to the daily operations of Starbucks stores.

Whether the final round of talks will lead to an agreement or a strike remains to be seen, but the pressure is mounting for both sides.

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