By Waylon Cunningham
(Reuters) -Unionized Starbucks baristas voted to authorize an open-ended strike ahead of Starbucks’ high-traffic holiday season, announced Starbucks Workers United on Wednesday.
The union said workers are prepared to strike if a contract is not finalized by November 13, which is the company’s Red Cup Day, and strike actions could hit more than 25 cities and escalate if there is a lack of progress.
Both sides blame the other for ending talks late last year and say they are ready to return to discussions.
Starbucks Workers United has filed more than 1,000 charges against the company for alleged unfair labor practices to the National Labor Relations Board, the union said. Starbucks says the union represents around 9,500 workers, or 4% of its cafe workforce.
Michelle Eisen, a spokesperson for the union who left Starbucks after a 15 year career at the company, said in a statement: “If Starbucks keeps stonewalling, they should expect to see their business grind to a halt. The ball is in Starbucks’ court.”
The Starbucks Workers United union, had been in talks with the company since last year, and said in October it will vote on picketing in about 60 cities, demanding a contract that reflects “improved staffing, better pay and on-the-job protections.”
Starbucks said in a statement that “any agreement needs to reflect the reality that Starbucks already offers the best job in retail.”
It said it would be able to serve customers at the vast majority of its stores through the holiday season “regardless of the union’s plans.”
CEO Brian Niccol has sought to overhaul U.S. store operations in a bid to win back customers. The coffee giant suffered six quarters of sales declines before October 29, when the company reported it 0% same store sales for its North American stores and 1% sales growth globally.
Starbucks in September shut more than 600 stores, including its flagship unionized outlet in Seattle, and trimmed its corporate workforce as part of the turnaround efforts.
In April, union delegates voted to reject Starbucks’ proposal that guaranteed annual raises of at least 2%, which the Workers United said did not offer changes to economic benefits such as healthcare or any immediate pay hike.
In October, New York City’s Comptroller and other Starbucks shareholders wrote to the company urging it to resume talks with its workers’ union.
(Reporting by Waylon Cunninghan; Chandni Shah and Neil J Kanatt in Bengaluru; Editing by Shailesh Kuber and Maju Samuel)
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