According to Reuters, a five-day Starbucks strike has expanded into the biggest work stoppage ever in the history of the company. Over 5,000 employees from over 300 US locations are expected to take part.
Starbucks Workers United has led a walkout that shut 60 Starbucks stores in major cities such as New York, Los Angeles and Seattle.
Negotiations have come to a standstill over wage disputes, scheduling and staffing.
Starbucks must take immediate action, say workers who claim that these problems have existed for many years.
The coffee giant’s unionised workers and the company are at odds, which is why this disruption will continue to Christmas Eve.
Strikes are triggered by wage disputes and stagnant talks
Starbucks and the union failed to reach an agreement for months, leading to this strike.
The company has offered a 1.5% increase in wages, but workers have rejected it because they feel that this is not enough to keep up with rising costs of living.
Starbucks Workers United criticised Starbucks for not presenting “a serious economic proposition.”
Workers United has pushed for wage increases. They have requested a minimum increase of 64% in the hourly rate immediately, and 77% over three years.
Starbucks responded by labeling these requests as “unsustainable”.
Starbucks maintains the impacts on their operations will be minor. They operate over 10,000 shops in the US.
The majority of the company’s locations are still open, and it has repeated its willingness to resume negotiations.
The union, however, disputes that, claiming Starbucks had prematurely ended previous bargaining sessions.
This strike highlights the wider labour issues within service industries, such as understaffing.
Starbucks prides itself in its progressive image. The strike shows a disconnection between the corporate message and employee feelings.
Starbucks is at a crucial time as the holiday season often represents a large portion of its annual revenues.
Starbucks’ unrest has a major impact on cities across the country
The strike has affected key locations like Boston, Seattle and Los Angeles, forcing the closure of these stores, which forces customers to seek out alternative coffee shops.
Starbucks claims that the protests will be limited. However, their size suggests otherwise.
The unions’ description of this strike as “a show of strength” indicates that there is a possibility for prolonged unrest.
Starbucks revenue and perception could be affected by the timing of this campaign, which occurs during peak holiday shopping season.
Analysts warn that continuing disputes may affect investor confidence and increase pressure on companies to resolve worker complaints.
The outcome of the labour dispute may set a precedent that could be followed by other retail workers and service employees who are unionised.
Starbucks Workers United stated that the strike was only the start, and signaled a more aggressive approach in order to secure worker demands by 2024.
As new information becomes available, this post Starbucks strikes to expand to 300 stores and more workers walkout on Christmas Eve could be revised.
