The union representing over 10,000 Starbucks (SBUX) baristas has announced a five-day strike beginning on Friday at its stores in Los Angeles, Chicago, and Seattle. Workers United, the union representing employees at 525 Starbucks locations, cited unresolved issues around wages, staffing, and schedules as the reason for the walkouts. The union had threatened a strike earlier this week.
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There is a broader wave of strikes across service industries as labor actions have picked pace inspired by workers in the manufacturing industry who have secured significant wins after their strikes.
Workers United Warns that the Strike Could Extend Nationwide
The union warned that the strike might extend to “hundreds of stores” nationwide by Christmas Eve, building pressure on the Seattle-based coffee chain during the busy holiday season. Meanwhile, Starbucks stated that it is ready to continue negotiations and claimed that the union delegates prematurely ended bargaining sessions this week.
Workers’ Union Criticizes SBUX’s Efforts
Lynne Fox, President of Workers United, commented, “After all Starbucks has said about how they value partners throughout the system, we refuse to accept zero immediate investment in baristas’ wages and no resolution of the hundreds of outstanding unfair labor practices.”
While Starbucks claims to have held over nine bargaining sessions since April, reaching agreements on numerous topics, the union insists many critical issues remain unresolved.
To further compound matters, hundreds of complaints have been filed with the National Labor Relations Board (NLRB), accusing Starbucks of unlawful practices, including retaliating against union supporters. Starbucks denies the allegations, maintaining that it respects workers’ rights to unionize.
Is Starbucks a Buy or Sell?
Analysts remain cautiously optimistic about SBUX stock, with a Moderate Buy consensus rating based on 14 Buys, six Holds, and four Sells. Year-to-date, SBUX has declined by more than 5%, and the average SBUX price target of $103.52 implies an upside potential of 16.6% from current levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
