Core Points - Starbucks Workers United, the largest union representing over 10,000 baristas, has authorized a nationwide strike with 98% of its members voting in favor due to unresolved unfair labor practice cases and inadequate pay proposals from the company [2][4] - Starbucks expressed disappointment regarding the union's decision to consider a strike, emphasizing that productive negotiations had taken place, resulting in thirty meaningful agreements since April [3][8] - The company is facing challenges, including a 7% decline in comparable sales year-over-year and a 3% decrease in net revenue to $9.1 billion [8][9] Union and Strike Details - The union's strike authorization is a response to hundreds of unresolved unfair labor practice cases and the company's failure to present a comprehensive pay package during negotiations [2][3] - In June 2023, over 150 unionized stores previously went on strike to protest the company's treatment of LGBTQIA+ workers, indicating ongoing tensions between the union and the company [5] Company Policies and Financial Performance - Starting in March, Starbucks will enhance its parental leave policy, offering up to 18 weeks of paid leave for birth parents and up to 12 weeks for non-birth parents, addressing employee feedback on existing benefits [6][7] - The company operates 11,161 company-operated stores and 7,263 licensed stores in North America, with approximately 4.5% of these stores being unionized as of October [4]
Starbucks is on the cusp of a major barista strike