Over 300 Starbucks (NASDAQ:SBUX) locations across the United States are expected to be affected by a strike on Christmas Eve. This development comes as part of a five-day strike involving over 5,000 workers, highlighting ongoing disputes between the company and its employees.
What Happened: A significant strike at Starbucks is set to impact more than 300 U.S. locations on Tuesday. Over 5,000 workers are expected to participate in the walkout, which is part of a five-day strike concluding on Christmas Eve.
Starbucks Workers United, representing employees at 525 stores nationwide, stated that over 60 stores in 12 major cities, including New York, Los Angeles, Boston, and Seattle, were closed on Monday. The strike stems from unresolved disputes over wages, staffing, and schedules.
The union described the Christmas Eve strike as potentially the largest in the company's history. An Oregon barista emphasized, "These strikes are an initial show of strength, and we're just getting started," in a union statement.
In response, a Starbucks spokesperson pointed to a company statement from Monday, asserting that most stores will remain operational with minimal disruption. The company, headquartered in Seattle, expressed readiness to resume negotiations when the union returns to the bargaining table. Starbucks had previously accused union delegates of prematurely ending talks.
Earlier this month, the union rejected a proposal from Starbucks that included no immediate wage increase but promised a 1.5% pay hike in future years. The union criticized the offer as lacking a "serious economic proposal."
Why It Matters: The strike has expanded to more U.S. cities as wage negotiations have stalled during the busy holiday season. Workers United has pushed for substantial wage increases, including a 64% rise in minimum hourly wages immediately and a 77% increase over a three-year contract. Starbucks, however, has labeled these demands as "unsustainable." Despite the strike, the company claims that its operations remain largely unaffected, with only a small number of its over 11,000 U.S. locations impacted.
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