Saturday, December 28

The struggle of Starbucks workers continues

Diego Franco has been working at Starbucks for five years and has not earned more than $16.00 an hour, so, although he is not sure, if necessary he would go on strike again, until the company recognizes his effort and dedication with a better salary.

Diego, 24, and 5,000 other Starbucks baristas ended a five-day strike in 43 states across the United States and returned to work on Wednesday.

“Where I work, before we were like 30 people, but today we are only about 12,” said Franco, a member of the Starbucks Workers United union. “The work has multiplied for us and they pay us the same.”
While the strikers say they are ready to consider “serious” economic proposals from the company; They are meeting and strategizing next steps in their campaign for fair contracts. The company did not respond to La Opinión whether its representatives will return to the negotiating table soon.

Over the course of 2024, Starbucks Workers United baristas have added more than 100 stores that have joined the union, seeking respect for their work, living wages, racial and gender equity, and fair scheduling.

In the last week of December, baristas from Maine, North Carolina, Texas, and the cities of New York and Seattle achieved unionization.

According to Michelle Eisen, a 14-year barista and union bargaining group delegate, September Brian Niccol became CEO of Starbucks with a compensation package worth at least $113 million, which is 10,000 times the average hourly wage. of a barista.
Due to the above, the union argued that the company has enough to offer adequate salary increases for workers.

In fact, in the fourth quarter of the year, which ended in September, Starbucks’ consolidated net income decreased 3%, even in constant currency, to $9.1 billion.

However, globally, such revenue increased 1%, to $36.2 billion.
“Our results do not reflect the strength of our brand,” said Rachel Ruggeri, chief financial officer, as the company tries to win back customers.

According to the strikers, Starbucks proposed an economic package with no new pay increases for unionized baristas and a guarantee of just 1.5% in future years, which equates to less than 50 cents an hour.

“Half the baristas at my store drive 30 minutes because they can’t afford to live closer to work,” barista Lauren Hollingsworth complained.

“That is absurd. Starbucks has lost its way. We know this because we see it every day in our stores. “My coworkers and I made the difficult decision to go on strike over unfair labor practices at hundreds of stores across the country,” said the woman, who earns $15.49 an hour. “We know that investing in baristas is the only way to change things. “These attacks are an initial show of force and we are just getting started.”

As background, the company disclosed that its proposed framework in contract negotiations included a commitment to ensure that members (employees) represented by the union received the same “merit increase” as other members (employees) each year, and that said salary increase “was never less than 1.5%.”

That way, 1.5% is a floor. If the merit increase in a given year was 5%, employees represented by the union would get that percentage pay increase.
Limited impact
in the company
In an open letter to Starbucks partners, Sara Kelly, executive vice president and chief partnership officer, revealed that most stores across the country opened as planned over the holidays. Only 60 establishments were temporarily closed over the weekend.

“We have more than 10,000 company-operated stores across the United States that provide work for associates and serve our customers,” Kelly said.

He stated that the public conversation that the strike reached “hundreds of stores in dozens of cities” may lack context because the vast majority of Starbucks stores (97-99%) continued operating “and we expect a very limited impact on our overall operations.” ”.

Kelly noted that Workers United’s proposals call for an immediate increase in hourly partners’ minimum wage by 64%, and by 77% over the life of a one-year contract.

“These proposals are not sustainable, especially when the investments we continually add to our total benefits package are the hallmarks of what sets us apart as an employer and what makes us proud to work at Starbucks,” he said.

The company said it offers an average wage of more than $18 an hour and provides what it calls “best-in-class benefits,” including health care, college tuition, paid family leave and stock grants.

“The combination of our average salary and benefits equates to an average of $30 per hour for baristas who work at least 20 hours per week,” said Starbucks management.

He added that turnover rates [el número de socios minoristas que se van cada año] are among the lowest in the industry, and more partners choose to stay and continue working at Starbucks than with other retailers.