Starbucks Corporation Faces Potential Strike

Starbucks Corporation (NASDAQ:SBUX) shares slipped by 0.75% as a potential strike looms from unionized baristas. The union representing these baristas announced plans for a five-day strike starting Friday, following stalled negotiations. This strike could significantly impact stores in major cities, including Los Angeles, Chicago, and Seattle.

The labor dispute has been ongoing since the first store was organized in December 2021. Employees are seeking improvements in compensation, schedules, and working hours. This latest development follows a high-profile strike in November during the company's Red Cup Day, a key promotional event.

Starbucks Workers United, which represents workers at over 500 of Starbucks' approximately 10,000 U.S. stores, voiced dissatisfaction with the coffee chain's recent offer; it did not include immediate raises for union members. There are concerns that the strikes could expand to hundreds of stores by Christmas Eve, affecting the company's holiday season performance.

In response to the upcoming strike, Starbucks stated that the union “prematurely ended” the most recent bargaining session and stressed its willingness to continue negotiations. The company noted that it has reached “meaningful agreements” on more than 30 key issues, including economic demands. Additionally, Starbucks highlighted its commitment to improving the worker experience, claiming that baristas working at least 20 hours a week can earn an average of $30 an hour in pay and benefits.

Investors are closely monitoring how this potential strike might impact Starbucks' operations and whether an agreement can be reached to resolve the labor dispute.

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