Starbucks Faces Largest Strike with Over 300 Stores Affected

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22 hours ago
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The Starbucks union has announced that the strike at U.S. Starbucks locations will expand to more than 300 stores, involving over 5,000 workers. The five-day strike, which began after pay raise negotiations with Starbucks stalled, is expected to conclude on Christmas Eve. By Monday, the strike had already impacted stores in cities such as Los Angeles, Chicago, Seattle, Boston, Dallas, New York, Denver, and Pittsburgh, resulting in the temporary closure of over 60 stores.

The union indicated that even with the planned expansion, the strike will affect only a small portion of Starbucks' over 10,000 company-owned stores, but it will be the largest strike against the coffee giant to date. Baristas are expected to return to work by Christmas or the following day.

The union claims the strike was prompted by the company's failure to provide immediate pay raises and a guaranteed 1.5% increase in subsequent years, equating to less than 50 cents per hour for hourly workers. A Starbucks spokesperson stated that the company offers an average wage exceeding $18 per hour, along with comprehensive benefits such as healthcare, free college tuition, and paid family leave for employees working at least 20 hours per week.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.