Starbucks Baristas Have Voted To Strike Next Thursday On ‘Red Cup Day'

Core Viewpoint - Starbucks Workers United, representing around 9,000 baristas across 550 stores in 25 major cities, has voted to strike on November 13 unless a final employment contract is reached, coinciding with the company's 'Red Cup Day' promotion [1] Group 1: Strike Details - Over 90% of Starbucks Workers United members voted to strike after a six-month wait for new proposals from Starbucks addressing demands for better staffing, higher pay, and resolutions to numerous unfair labor practice charges [3] - In 2023, approximately 200 unionized stores participated in a "Red Cup Rebellion" strike on Red Cup Day, and a previous strike on Christmas Eve led to nearly 200 store closures [3] - More than 45 major organizations, representing over 85 million people, have urged Starbucks CEO Brian Niccol and the board to finalize a contract and pledged not to cross picket lines in the event of a strike [3] Group 2: Company Response and Union Representation - Starbucks stated that fewer than 4% of its hourly workers are unionized, and all 10,000 company-operated stores, along with 7,000 licensed locations, will remain open on Red Cup Day [4] - Previous CEO Laxman Narasimhan had promised to finalize a contract agreement by the end of 2024, but negotiations stalled after his departure and the arrival of CEO Niccol in September [4] Group 3: Background and Employee Relations - The dissatisfaction among Starbucks baristas has been ongoing since the first unionization effort in Buffalo stores in 2021, with 500 stores joining Starbucks Workers United by the end of last year [5] - Employee relations worsened after CEO Niccol's arrival, following media coverage of his lucrative employment contract, estimated at $113 million, which included a $10 million sign-on bonus and an annual salary of $1.6 million [5] - In 2024, Niccol earned $95.8 million, primarily in stock, which is reported to be 6,666 times the median barista's pay of $14,674, marking the widest pay gap among all S&P 500 companies [5]