The Starbucks logo is seen during a protest by members and supporters of Starbucks Workers United in front of a Starbucks store in Dupont Circle in Washington, DC, on November 16, 2023. Can be seen.
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Starbucks Workers at unionized cafes will receive the pay increases that their non-union colleagues first collected in May 2022, but this is not due to the labor union representing the coffee giant and some baristas. It’s a significant step as the union indicated Tuesday it is working to resolve a dispute over negotiations.
The wage increase is a sign of good faith from Starbucks to Workers United, an affiliate of the Service Employees International Union, which organizes more than 300 Starbucks company stores.
The parties jointly announced Tuesday afternoon that they had found a “constructive path forward” in mediation talks last week. The meeting was part of a lawsuit by Workers United over Starbucks’ use of the brand, sparked by a post on social media site X from the pro-Palestinian union’s account.
Starbucks and Workers United announced they have agreed to begin discussions on a “basic framework” for how to enter into collective bargaining agreements for stores. The announcement marks the most significant thaw in the relationship between the two companies since the first Starbucks stores were unionized in December 2021.
If Starbucks follows through on Union Café’s wage increase pledge, employees with two to five years of service will receive a 5% pay increase or 5% above market starting salary, whichever is higher. become. Workers with more than 5 years of service will earn 7% more or 10% more than their market starting salary, whichever is higher.
The coffee chain is under the leadership of former CEO Howard Schultz, who ran an aggressive campaign against unions and faced backlash from organizations, politicians and customers over the strategy. The wage increase was implemented in May 2022. The current CEO, Laxman Narasimhan, has been in the job for nearly a year.
Starbucks also announced Tuesday that it will begin offering credit card tips at unionized cafes. This benefit has been available at non-union stores for more than a year.
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