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Some Starbucks (NASDAQ:SBUX) stores could be impacted by a one-day work strike on November 16. Unionized Starbucks (SBUX) baristas have warned that they may walk off the job to protest what they say is a refusal by the company to negotiate in good faith for labor contracts for stores that have unionized.
The strike will coincide with Starbucks’ (SBUX) Red Cup Day, which is a popular promotional event when the chain’s familiar holiday-themed reusable cups make their first appearance.
In response to the strike threat, Starbucks (SBUX) has said that it is the union that has failed to negotiate in a fair manner.
The strike is only expected to impact around 2% of all the Starbucks (SBUX) stores in the U.S.
Last week, Starbucks Corporation (SBUX) announced that it will raise the hourly pay for its U.S. retail workers by at least 3% from 2024, with differentiated pay for eligible tenured partners. The coffee chain company said eligible partners with at least five years of service will get a 5% pay boost. Other partner investments announced by Starbucks (SBUX) included employees accruing paid vacation time sooner, innovative financial well-being and skills-building benefits, partner-centric scheduling, and the introduction of the first-ever North America Barista Championship.
Starbucks (SBUX) dipped 0.65% in afternoon trading on Monday.