Starbucks has announced a wage increase for its union workers in an effort to restore relations with Workers United, the union representing some baristas. This move comes after a standoff over bargaining and mediation discussions between the two parties.
The wage increases that union workers will receive are the same as those given to nonunion workers in May 2022. This gesture is seen as a sign of good faith from Starbucks towards Workers United. The company has organized more than 300 of its company-owned locations under this union.
In a joint announcement, Starbucks and Workers United stated that they have found a “constructive path forward” and have agreed to start discussions on reaching collective bargaining agreements for stores. This is a significant development in their relationship since the first Starbucks location was unionized in December 2021.
The wage increases will vary based on an employee’s tenure with the company. Those who have been with Starbucks between two and five years will receive either a 5% increase or get paid 5% above the market’s start rate, whichever is higher. Employees with more than five years of tenure will get a 7% increase or earn 10% more than the market’s start rate, whichever is higher.
It is worth noting that these wage hikes were initially implemented in May 2022 under the leadership of former CEO Howard Schultz. However, Schultz faced backlash from Workers United, politicians, and customers for his aggressive campaign against the union. The current CEO, Laxman Narasimhan, has been in the role for almost a year and is now working towards restoring relations with the union.
In addition to the wage increase, Starbucks has also announced that it will provide unionized cafes with credit card tipping, a benefit that has been available in nonunion stores for over a year. This move aims to provide equal benefits and opportunities for all Starbucks employees, regardless of their union affiliation.
Overall, this recent announcement by Starbucks shows the company’s commitment to improving relations with its union workers. By offering wage increases and additional benefits, Starbucks aims to bridge the gap between the company and Workers United. It remains to be seen how these discussions and agreements will progress, but this is certainly a step in the right direction for Starbucks and its employees.
