Vithanage Erandi Kawshalya Madhushani Jade Times Staff
V.E.K. Madhushani is a Jadetimes news reporter covering Business.
Thousands of Starbucks Workers Walk Out Across the US
More than 11,000 Starbucks baristas across the United States have launched a five-day strike in protest over pay, staffing shortages, and working conditions. The strike began on Friday, with workers walking out at locations in Los Angeles, Chicago, and Seattle. The labor action, spearheaded by Starbucks Workers United, is expected to grow daily and impact hundreds of stores by Christmas Eve if no resolution is reached.
The union is demanding higher wages, improved staffing levels, and more consistent scheduling practices. Starbucks, in response, has called for the union to return to the bargaining table.
Largest Action in Starbucks Union History
This strike represents the most extensive action by Starbucks Workers United since the union began negotiating with the coffee chain over two years ago. Since the first Starbucks store voted to unionize in 2021, the organization has gained representation in more than 500 stores across 45 states.
"It's a last resort, but Starbucks has broken its promise to thousands of baristas and left us with no choice," said Fatemeh Alhadjaboodi, a barista from Texas, in a statement released by the union.
Union Highlights Pay Disparity
Workers United has criticized the stark pay gap between frontline workers and Starbucks executives. The company’s CEO, Brian Niccol, receives a base salary of $1.6 million, with the potential to earn an additional $7.2 million in bonuses and up to $23 million annually in Starbucks shares.
Starbucks has defended the compensation package, stating that Mr. Niccol's pay reflects his leadership and is tied to company performance.
The company also emphasized its competitive employee compensation, citing an average hourly wage of $18 and benefits valued at approximately $30 per hour for baristas working 20 hours or more per week.
Mounting Challenges for Starbucks
The strike comes at a critical juncture for Starbucks, as the coffee giant faces challenges on multiple fronts. It has seen declining sales due to backlash over price increases and consumer boycotts linked to global events such as the Israel-Gaza conflict.
The company recently appointed Brian Niccol to replace Laxman Narasimhan as CEO, marking a shift in leadership aimed at reversing its fortunes. Under Narasimhan, Starbucks softened its previously aggressive stance toward union negotiations, committing to work toward a deal earlier this year.
Union Pressure Extends to Other Corporations
Starbucks is not the only company facing labor unrest during the holiday season. The Teamsters union has staged protests against Amazon, targeting the tech giant as it pushes to meet holiday shipping deadlines. Delivery drivers at seven Amazon facilities walked off the job on Thursday after the company refused to negotiate a labor contract with the union.
Outlook and Next Steps
With the Starbucks strike expected to spread in the coming days, the pressure is on both the company and the union to reach a compromise. As the holiday season progresses, the strike underscores broader labor issues within the retail and service industries, where workers continue to advocate for fair treatment and better pay.
