Niccol Faces Calls From US Lawmakers To Restart Union Talks With Starbucks Workers United – CoffeeTalk
Twenty-six U.S. senators and 82 House representatives have urged Starbucks CEO Brian Niccol to resume negotiations with Starbucks Workers United, the union representing approximately 9,500 employees. This call to action, spearheaded by Senator Bernie Sanders, highlights a concerning trend of “union busting” at Starbucks, with the lawmakers emphasizing the necessity for the company to negotiate a fair contract in good faith.
Starbucks has experienced stalled discussions with the union since April of the previous year, with both parties attributing the deadlock to the other. Currently, Starbucks claims that the union represents merely 4% of its total workforce and contends that it offers “the best job in retail,” providing benefits such as healthcare and parental leave for employees working a minimum of 20 hours weekly.
However, Starbucks Workers United has contested this, filing over 100 charges against the corporation for alleged unfair labor practices, including accusations of retaliating against baristas attempting to unionize. The lawmakers’ letters assert that Starbucks possesses ample financial resources to negotiate a fair agreement, citing the company’s significant expenditures on dividends, stock buybacks, and the substantial compensation of CEO Niccol, which included $95 million in 2024.
In response, Starbucks argues that such financial maneuvers benefit employees who own shares through stock ownership programs, in addition to institutional and pension fund investors. The union has indicated that its members are ready to strike if a contract is not reached by November 13, coinciding with the company’s significant sales event known as “Red Cup Day.” Anticipated strike actions are poised to initially target over 25 cities and may escalate if negotiations remain unproductive.
In the backdrop of these events, Niccol is attempting to revamp Starbucks’ operations in the U.S. to recover from a protracted decline in sales, a streak that persisted over six quarters prior to a marginal 1% global sales growth reported on October 29. As part of his strategy, Starbucks has closed more than 600 stores, including a key unionized location in Seattle, and reduced its corporate workforce to facilitate a turnaround.
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Source: Coffee Talk
