A Starbucks logo is seen as Starbucks Workers United members and supporters protest outside a Starbucks store in Dupont Circle, Washington, DC, on November 16, 2023.
Kevin Dietsch | fake images
starbucks Workers at unionized cafes will receive the pay increases their non-union co-workers first earned in May 2022, a key step as the coffee giant and the union representing some baristas signaled Tuesday that they are working to break a confrontation over negotiation.
The wage increases are a sign of good faith from Starbucks toward Workers United, an affiliate of the Service Employees International Union that has organized more than 300 company-owned Starbucks locations.
The parties jointly announced Tuesday afternoon that they had found a “constructive path forward” during mediation discussions last week. The talks were part of litigation over Workers United's use of the Starbucks brand, sparked by a post on social media site X by the union's account in support of Palestinians.
Starbucks and Workers United said they agreed to begin discussions “on a foundational framework” for how to reach collective bargaining agreements for the stores. The announcement marks the most notable thaw in the relationship between the two sides since the first Starbucks location unionized in December 2021.
If Starbucks makes good on its promise to raise wages at unionized cafes, employees who have been with the company between two and five years will receive a 5% raise or a salary 5% above the starting market rate, earning what be older. Workers with more than five years of seniority will get a 7% raise or earn 10% more than the starting market rate, whichever is greater.
The coffee chain implemented the wage increases in May 2022 under the leadership of former CEO Howard Schultz, who waged an aggressive campaign against the union and faced backlash from the organization, politicians and customers for the strategy. The current CEO, Laxman Narasimhan, has been in the role for almost a year.
Starbucks also said Tuesday that it would offer unionized cafes credit card tips, a benefit that has been available at non-union stores for more than a year.
Don't miss these CNBC PRO stories:
