A Starbucks logo is seen as members and supporters of the Starbucks Workers United protest outside a Starbucks store in Dupont Circle, Washington, DC, on November 16, 2023.
Kevin Dietsch | Getty Images
Starbucks Unionized cafe workers will receive the pay raises that their non-union colleagues first collected 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 deadlock stalemate on bargaining.
The wage increases are a sign of good faith by 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 a dispute over Workers United’s use of the Starbucks brand, sparked by a post on the social media site X from the union’s account supporting the Palestinians.
Starbucks and Workers United said they agreed to begin discussions “on a foundational framework” for how to reach collective bargaining agreements for stores. The announcement marks the clearest dissolution in the relationship between the two parties since Starbucks’ first location was unionized in December 2021.
If Starbucks follows through on its promise to raise Union Café salaries, employees who have been with the company between two and five years will receive a 5% raise or be paid 5% above the starting market rate , earning whichever is higher. Workers with more than five years of tenure will get a 7% raise or earn 10% more than the starting market rate, whichever is higher.
The coffee chain implemented the wage increases in May 2022 under the leadership of former CEO Howard Schultz, who campaigned aggressively against the union and faced backlash from the organization, politicians and customers for the strategy . Current CEO Laxman Narasimhan has been in the role for almost a year.
Starbucks also said Tuesday that it will provide unionized coffee shops with credit card tipping, a benefit that has been available at non-union stores for more than a year.
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