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Starbucks Unionization Update: Baristas Seek 17 Bucks

Starbucks Workers United, working in conjunction with the Service Employees International Union, has had remarkable election success, but thus far has been unsuccessful in negotiating a single collective bargaining agreement (CBA).  The Union has won 699 elections covering 15,122 employees, and lost 135, covering 2,935 employees.  In the elections won by the Union, the votes have not been close: 8,623 for the Union to 2,084 against. While the Union victories are impressive, there are approximately 16,900 U.S. Starbucks stores, meaning that only about 4% are unionized.  Another statistic of note: over 700 unfair labor practice charges are pending against Starbucks.

Starting pay at Starbucks is $15.25-$16/hour in 43 states.  In addition to raising starting pay to a minimum of $17/hour, the Union seeks the following terms in their CBAs:

  1. 4% annual pay increases.
  2. “Just cause” protection.
  3. A grievance procedure.
  4. More hours for experienced baristas than new hires.
  5. Minimum staffing—3 employees on the floor always.
  6. Health and safety improvements.

During the past several months, Starbucks announced programs for baristas to earn up to an additional $300 per quarter, enhanced opportunities to receive tips, changed to a weekly pay period, and committed to award 90% of all retail leadership roles by promoting from within. While these programs have been implemented uniformly at non-unionized locations, labor law generally prohibits employers from making changes to pay and benefits, even favorable ones, for a unionized workforce unless the changes have been bargained with the union (even if the union and employer have not yet agreed to a CBA).

Starbucks’ unionized workforces may be turning green with envy at the opportunities their non-Union co-workers are receiving, and have to be concerned that if the Union and Starbucks ultimately reach an agreement, the terms may not be as favorable as those now in place or coming soon to non-union locations.

If you have any questions or would like additional information, please contact Richard Lehr at (205) 323-9260 or rlehr@lmvtlaw.com.