A Starbucks logo is seen as members and supporters of Starbucks Workers United protest outside a Starbucks store in Dupont Circle, Washington, DC on November 16, 2023.
Kevin Dietsch | Getty Images
Starbucks Workers at unionized cafes will receive the wage increases that their non-unionized colleagues first received in May 2022. It’s an important step as the coffee giant and the union representing some baristas signaled Tuesday that they are working to end the stalemate in negotiations.
The wage increases are a sign of goodwill from Starbucks to Workers United, an affiliate of the Service Employees International Union, which has organized more than 300 company-owned Starbucks locations.
The parties jointly announced on Tuesday afternoon that they had found a “constructive path forward” in mediation talks last week. The talks were part of a legal dispute over Workers United’s use of Starbucks branding, sparked by a post on social media site X from the union’s account in support of Palestinians.
Starbucks and Workers United said they had agreed to begin discussions “on a basic framework” for entering into collective bargaining agreements for stores. The announcement marks the most significant upturn in the two parties’ relationship since the Starbucks location first unionized in December 2021.
If Starbucks follows through on its promise to increase wages for union cafes, employees who have been with the company between two and five years will receive either a 5% raise or compensation that is 5% above the market starting rate, whichever is the case amount is higher. Employees with more than five years of service will receive a 7% increase or earn 10% more than the market starting rate, whichever is greater.
The coffee chain implemented the wage increases in May 2022 under the leadership of former CEO Howard Schultz, who waged an aggressive campaign against the union and faced backlash from the organization, politicians and customers for the strategy. The current CEO Laxman Narasimhan has been in this position for almost a year.
Starbucks also announced Tuesday that it would offer credit card tipping to union coffee shops, a benefit that has been available at non-union stores for more than a year.
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2024-02-28 06:48:20
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