Starbucks Baristas Begin Strike in Several U.S. Cities

Key Takeaways

• Unionized Starbucks baristas in Chicago, Los Angeles, and Seattle have gone on strike in a pay dispute with the giant coffee retailer.
• Starbucks Workers United said the walkouts would expand throughout the country and run until Christmas Eve.
• The company argued the union has made unrealistic demands, and said the strike has had little impact on its operations.

Starbucks' (SBUX) unionized baristas in Chicago, Los Angeles, and Seattle have walked off the job in a pay dispute, with the union representing them saying the strike will be expanded “from coast to coast” and extend until Christmas Eve.

Starbucks Workers United said the biggest coffee retailer was “backtracking on our promised path forward" after the union announced in February that the two sides had agreed to begin discussions to achieve collective bargaining agreements and resolve litigation between them. Since then, however, the union said that Starbucks "has yet to bring a comprehensive economic package to the bargaining table and hundreds of as-yet unsettled unfair labor practices remain unresolved.”

Starbucks told Investopedia in an emailed statement that the union prematurely called off negotiations this week. It said Starbucks Workers United is demanding an immediate minimum wage increase of 64%, and a 77% hike over the life of a three-year contract, arguing that “this is not sustainable.”

Spokesperson Phil Gee said the walkout has had “no significant impact on our store operations,” and that only a “small handful of stores” had been affected.

Starbucks shares, down about 8% this year, were off less than 1% in Friday trading. The news follows the announcement of another strike yesterday by some Amazon.com (AMZN) workers.