Starbucks CEO Admits Apparatus Needs to be More Transparent on Pricing, Unionized Workers Continue Nationwide Strike
As the strike by Starbuck’s unionized workers continues to spread across the United States, the company’s CEO, Brian Niccol, has acknowledged that the company’s app needs to be more transparent on pricing. The strike, which began in Los Angeles, Chicago, and Seattle before expanding to other cities, has resulted in the closure of 59 stores across the country as of Monday.
The workers, who are represented by the Starbucks Workers United union, are protesting a lack of progress in contract negotiations with the company. Specifically, they are seeking significant wage increases and resolution of outstanding legal issues, including hundreds of unfair labor practice allegations filed with the National Labor Relations Board.
The union has requested an immediate 64% increase in the minimum wage of hourly partners, with an additional 77% over the life of a three-year contract. The company has responded by stating that this is not sustainable, and that the proposed increases would put pressure on the business.
Despite the strike, which has already affected a small number of stores, Starbucks claims that the disruptions have had a limited impact on its operations. The company has argued that it has made commitments to its unionized workers, including an annual pay increase of 1.5% or more, and that it has committed to a pay package worth an average of $30 per hour for baristas who work at least 20 hours a week.
However, the union and its members remain unsatisfied, citing the company’s potential for significant profits and the pay package of its CEO, Brian Niccol, who could earn over $100 million in his first year. The union has warned that the strike could reach “hundreds of stores” by Christmas Eve, with over 11,000 stores and 200,000 employees in the United States affected.