Starbucks and Workers United Restart Contract Talks After Two-Year Standoff

After a standoff lasting two and a half years, Starbucks and the Workers United union have agreed to restart contract negotiations. This breakthrough comes following a mediation last week that addressed issues related to intellectual property rights and trademark litigation.

Shared Commitment to Positive Relationship

Both Starbucks and Workers United have expressed a shared commitment to establishing a positive relationship in the interests of Starbucks partners. This commitment was highlighted in statements released by both the company and the union.

Concessions from Starbucks

As a major concession, Starbucks has agreed to provide approximately 10,000 workers in unionized stores with pay hikes and benefits similar to those given to non-unionized employees in May 2022. This includes the allowance for customers to add a tip to their credit card payments.

Unionized Stores and Contract Agreements

Although workers have voted to unionize at nearly 400 company-owned Starbucks stores across the country, no contract agreements have been reached with the Seattle-based chain. The persistent standoff has led to ongoing tensions between the two sides.

Challenges and Concessions

Starbucks has faced challenges, including orders to reinstate workers who were fired after leading organizing efforts, as well as over 100 complaints issued by regional offices of the National Labor Relations Board for unfair labor practices. These practices include refusing to negotiate and withholding pay raises and other benefits granted to workers in non-unionized stores.

Desire to Ratify Contracts

In December, Starbucks indicated its intention to ratify contracts with its union workers this year, following a seven-month impasse. The company sought to demonstrate its seriousness about returning to the bargaining table, prompting the union to present a list of demands, including credit card tipping and back pay.

Worker Perspective

Michelle Eisen, a barista and organizer at the first unionized Starbucks store in Buffalo, New York, emphasized the significance of demands such as credit card tipping and back pay. Workers are now set to receive what they would have earned if they had been given the same raises and credit card tips provided to non-union stores in May 2022.

Continued Advocacy

Eisen underscored the relentless advocacy of workers, stating, "We have not stopped fighting for two and a half years. For every one barista that got tired and had to step away from this fight, there were 10 more to take their place."

Impact of Credit Card Tipping

According to Eisen, certain non-union locations that received credit card tipping have workers earning an additional $2 to $3 per hour beyond their standard hourly pay. This has a significant impact, particularly for those earning around $19 per hour.

“If you're making around $19 an hour, an additional $3 an hour is pretty substantial,”