A worker wears a Starbucks Workers United bandana as workers and supporters picket in front of a Starbucks Reserve Roastery in Seattle, Washington, U.S., December 24, 2024. REUTERS
A pro-union sign covers a corporate logo in the window of a Starbucks location during a strike and rally organized by Starbucks Workers United in Seattle, Washington, U.S., March 11, 2025. REUTERS
A Starbucks store sign is seen in New York City, U.S., February 25, 2025. REUTERS
(Reuters) – Starbucks union delegates involved in contract bargaining voted to reject the coffee chain’s latest proposal that guaranteed annual raises of at least 2%, Workers United said.
Out of the 490 baristas representing the company’s more than 550 unionized U.S. stores, 81% rejected the proposal, which did not offer any changes to economic benefits such as healthcare or any immediate pay hike.
Starbucks said in a statement that the union presented an incomplete framework for single-store contracts to their delegates to vote on, adding that its actions were causing a delay in reaching a mutual agreement.
The company pays its baristas more than $19 an hour on average currently, which with benefits comes to about $30 an hour. It had proposed to the union that their annual raises would not fall below 2%.
The parties had been advancing contract negotiations in recent weeks after agreeing to bring in a mediator to help resume stalled negotiations in February.
Since then, they have reached tentative agreements on many key contract issues, such as health and safety measures, but the latest offer was “not good enough”, according to the memo shared by Workers United.
Reporting by Savyata Mishra in Bengaluru and Waylon Cunningham; Editing by Devika Syamnath
