Workers at
Starbucks
stores struck Thursday as the union that has fought to organize baristas for more than two years seeks to reach a contract with the coffee company.
The labor action, dubbed “Red Cup Rebellion” by the Workers United union, was timed to coincide with Starbucks’ big promotional day, when it gives free, reusable red cups to customers purchasing holiday drinks. The union had expected thousands of people to strike.
Starbucks stock (ticker: SBUX) closed 1.1% higher, while the
S&P 500
rose marginally.
The union says the company’s red-cup giveaway aggravates understaffing in stores that are also juggling multiple ordering streams: at the drive-through, on mobile, and for delivery, on top of traditional walk-up orders.
“This is difficult enough to manage with a fully-staffed floor, but we’re often expected to manage all these things with only three workers,” said Neha Cremin, an Oklahoma City barista, in a statement provided by the union. “Understaffing hurts workers and also creates an unpleasant experience for customers.”
About 360 Starbucks stores have unionized with Workers United since December 2021. That number is a fraction of the more than 9,000 company-operated locations in the U.S., but it is a feat in the service industry, where organizing workers in lower-wage, high-turnover jobs can be more challenging than in other sectors.
The union and Starbucks have accused each other of dragging out negotiations to reach initial contracts.
“We are aware that Workers United has publicized a day of action at a small subset of our U.S. stores,” Starbucks said in a statement. “We remain committed to working with all partners, side-by-side, to elevate the everyday, and we hope that Workers United’s priorities will shift to include the shared success of our partners and negotiating contracts for those they represent.”
Alexandra Abramovitch passes out fliers for Starbucks Workers United at a Starbucks in Bronxville, N.Y., during the Red Cup Rebellion on Nov. 16 .
Photograph by Sarina Finkelstein/Barron’s
As for staffing, the company said there is “flexibility to build and adjust staffing schedules to reflect the unique and dynamic needs of each store.”
Starbucks is also facing accusations that it violated the rights of employees seeking to unionize and negotiate contracts. Regional offices for the National Labor Relations Board, the federal agency that oversees worker rights to organize, have brought more than 100 cases against the company alleging unfair labor practices.
In 33 cases, administrative law judges at the agency have found Starbucks violated the law by taking actions such as interrogating, threatening, and discharging workers, among other incidents.
“Where we believe the charges lack merit or are unfounded, we continue to defend the company and the rights of our partners as matters are fully adjudicated by the NLRB and federal courts,” Starbucks said in a statement. The company said it has reached settlements in some instances and is litigating other matters.
On Thursday, a group of unionized employees picketed outside the Starbucks where they work in Queens, New York. They held up handmade signs, drank coffee from competitor Dunkin’, and asked customers to avoid going in the store.
Maria Flores, a part-time worker and union member, said she wanted to get the word out and encourage people to put their “money where their values are.”
Her colleague James Carr, a shift supervisor and union organizer, agreed: “If everyone in America said we’re not doing any buying of anything at Starbucks until there’s a negotiation that happens, that would be our greatest help.”
Write to Catherine Dunn at [email protected] and Sabrina Escobar at [email protected]
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