Starbucks Workers United union sends contract proposal to company

Starbucks Workers United presented the company with a comprehensive proposed contract last month, the union said on a call with investors Friday, as baristas attempt to strike their first labor agreement with the coffee giant.

Here’s what baristas asked for in that proposal:

• Protections for union baristas against discrimination, unjust firings and temporary or permanent store closures.
• Starting wage floor of $17 per hour, down from its prior proposal of $20 an hour but still above the company’s current starting wage of $15.25 to $16 an hour in 43 states.
• Annual raises of 4%.
• A process for baristas, management and union representatives to resolve workforce grievances.
• A dress code endorsed by the union.
• Requirement for at least three workers on the floor at all times and enforceable staffing and safety protections.
• A mandate to offer open hours to existing employees before hiring new baristas.
• Resolution of hundreds of outstanding unfair labor practice charges.

The union said Starbucks has not yet responded to the substance of the proposal.

The coffee giant told CNBC that it would like to restart talks with Workers United as soon as this month.

“Starbucks has proposed to resume in-person bargaining with Workers United on March 30 and to remain available for continued negotiations throughout April,” Starbucks spokesperson Jaci Anderson said in a statement.

Workers United represents about 6% of Starbucks’ company-owned locations in the U.S., according to regulatory filings.

The announcement comes months after bargaining talks between the two parties hit a wall. Starbucks and the union last held formal negotiations in December 2024. Several months later, the two parties met for mediation, but hundreds of barista delegates voted down the economic package proposed by the company in April.

Over the holiday season, baristas in more than 40 cities held an open-ended strike that stretched on for several weeks. The work stoppage led to dozens of temporary store closures for the coffee chain during its busiest time, although the company said it didn’t materially affect its business.

Starbucks’ strained relations with its baristas will also likely garner attention at its annual meeting for shareholders, scheduled to be held on March 25.

A group of investors led by union-affiliated SOC Investment Group is urging shareholders to vote against the reelection of directors Jørgen Vig Knudstorp and Beth Ford, citing their oversight roles tied to the company’s labor relations. Proxy advisory firm Glass Lewis has recommended voting against the reelection of Ford, chair of the nominating and corporate governance committee.

The prolonged battle between the company and its baristas poses a potential roadblock to Starbucks as it attempts a turnaround of its sluggish U.S. business. During the company’s holiday quarter, its store traffic rose for the first time in two years.

In Starbucks’ most recent annual filing, the company noted potential risks ahead, like further work stoppages or harm to its reputation and brand.