FX168 Financial News (North America) News Starbucks employees' strike action has now extended to more than a dozen major US cities to protest against the company's failure to provide reasonable economic solutions. The five-day strike began on December 20, coinciding with a peak holiday shopping period and is expected to continue until Christmas Eve.
Background and scope of the strike
The strike was organized by the Starbucks Employees Federation, representing more than 10,000 baristas and involving more than 500 stores. Protests first began in Los Angeles, Chicago, and Seattle, then spread to cities such as New York, Boston, and Dallas. Employees accuse the company of not proposing an effective economic plan during negotiations, and are dissatisfied with low pay, scheduling issues, and staff shortages.
The cities currently involved in the strike include:
Boston, Dallas, Fort Worth, Portland, Chicago, Columbus (Ohio), Denver, Los Angeles, New York, Pittsburgh, Seattle, and St. Louis.
Support and criticism
Pittsburgh Mayor Ed Ghaney publicly expressed solidarity with the strikers, saying Starbucks needed to fulfill its promise of fair negotiations. Vermont Senator Bernie Sanders also joined the supporters, criticizing Starbucks' “corporate greed,” particularly the new CEO Brian Nicol's $0.113 billion compensation package, which is in stark contrast to the financial plight of frontline workers.
The union's position with Starbucks
The union said they have been trying to raise wages and improve working conditions since December 2021, but negotiations are progressing slowly. Striker workers accused Starbucks of not living up to its promises and criticized it for unfair labor practices. Starbucks responded that the union's economic demands were “unsustainable,” such as requiring a 64% increase in the minimum hourly wage and 77% within three years.
Employee dilemmas
An employee with 18 years of work experience said that the Starbucks' holiday season may seem magical, but it is a dark side for employees. Due to her reduced schedule, it was difficult for her to pay her bills, and her life was full of stress. Another negotiator stressed that the strike was a “last resort” and criticized Starbucks for not prioritizing employee welfare.
As the strike continues, the normal operation of Starbucks stores may be further affected, and the strike also revealed conflicts between the company's management and frontline employees.
Starbucks shares fell more than 1% intraday on Monday (December 23).
(Source: Google)
