Starbucks and Workers United announced Tuesday that both sides will start working toward collective bargaining agreements, resolution of legal matters, and a fair process for union organizing after years of a highly publicized tug of war.
As part of the truce, the coffee giant agreed to provide employees represented by Workers United with credit card tipping and other benefits announced in May 2022, including pay bumps for tenured workers and further investments in managers. At the time, founder and then-CEO Howard Schultz claimed federal law prevented Starbucks from promising new wages and benefits and implementing unilateral changes at stores that have a union.
Starbucks Workers United represents employees in about 400 U.S. company-operated shops. Stores have been organizing since December 2021, when a group of Buffalo locations first made the move.
“There is a lot of work ahead, but this is an important, positive step. It is a clear demonstration of our intent to build a constructive relationship with Workers United in the interests of our partners,” chief partner officer Sara Kelly said in an open letter. “I want to acknowledge and appreciate the union’s willingness to do the same.”
On Tuesday afternoon, Starbucks Workers United tweeted “A giant step forward made possible by thousands and thousands of us joining together and speaking out…”
Starbucks said a path forward became clear during mediation discussions for the ongoing brand and IP litigation. This particular ordeal came after Starbucks Workers United tweeted in support of Palestine. Starbucks filed legal action, arguing that the union’s use of the company’s likeness was causing confusion and that customers were erroneously tying the comments back to Starbucks.
After the brand made that move, social media users nationwide called for boycotts. The coffee giant acknowledged during its Q1 earnings call that it harmed traffic toward the end of 2023. CEO Laxman Narasimhan told analysts that events in the Middle East had an effect domestically, fueled by “misperceptions about our position.”
In recent years, Starbucks and Workers United have accused each other of unlawful practices, including claims that the restaurant chain was union busting by closing stores and threatening supporters of the movement. Schultz testified before a Senate committee in March 2023 to defend the company’s actions.
In December, Starbucks published an open letter to Workers United president Lynne Fox showcasing its desire to reach an agreement. In the message, the brand committed to certain negotiation parameters, like conducting sessions without video or audio so participants wouldn’t feel pressured and refraining from disparaging, profane, and abusive language.
