More than 100 lawmakers are pushing Starbucks to resume union negotiations

More than 100 lawmakers urged Starbucks to resume bargaining talks with United Workers, the union that represents the coffee giant’s baristas, in letters sent to CEO Brian Nicol on Monday.

The letters, from the Congressional Labor Caucus and a group of senators led by Senator Bernie Sanders, come as the union threatens to strike in 25 cities starting Thursday. This coincides with Starbucks’ Red Cup Day, one of the biggest sales days of the holiday season.

“It is clear that Starbucks has the funds to reach a fair agreement with its workers,” said the Senate letter, signed by 26 lawmakers. “Starbucks should reverse course from its current position, resolve its current labor disputes, and negotiate a fair contract in good faith with these employees.”

A second letter to the Congressional Labor Caucus was signed by 82 lawmakers.

Lawmakers argued that the coffee giant has the resources to increase workers’ wages and benefits, citing Nicol’s $95 million in compensation since his hiring. The company said $90 million of the compensation package was in the form of stock awards to cover the stock Nicol left in Chipotle when he moved to Starbucks to take over as CEO.

Last week, the United Workers Organization said its vote to approve the strike was approved by 92% of its members. If the union decides to strike, it will be open. The labor union is pushing for better hours, higher wages and the resolution of hundreds of unfair labor practice charges against the company.

The two sides are not in active contract talks after discussions collapsed late last year. Starbucks and the union entered into mediation in February, and hundreds of barista delegates voted against the economic package Starbucks proposed in April.

Both sides have blamed the failure to reach a bargaining agreement on the other and say they are willing to negotiate.

Workers United, which began organizing at Starbucks in 2021, says it now represents more than 12,000 workers at more than 650 stores. Last week, the company told CNBC that the union represents only 9,500 workers at 550 cafes.

“We want Starbucks to succeed, but transforming the company and bringing back customers starts with listening to and supporting the baristas responsible for the Starbucks experience,” Michelle Eisen, spokeswoman for the Starbucks Labor Union, said in a statement last week. “If Starbucks continues to drag its feet, they should expect their business to go out of business. The ball is in Starbucks’ court.”

In response to the results of last week’s strike vote, Starbucks said it would be ready to serve customers across its nearly 18,000 company-operated and licensed stores this holiday season.

“As everyone knows, Starbucks offers the best job in retail, including more than $30 an hour on average in pay and benefits for hourly associates. United Workers, which represents just 4% of our associates, has chosen to walk away from the negotiating table. We have asked them to come back — multiple times. If they’re willing to come back, we’re ready to talk,” Starbucks spokesperson Jackie Anderson told CNBC in a statement Monday. “We believe we can move quickly to reach a reasonable deal.”

In a letter to workers addressing the strike authorization vote last week, Sarah Kelly, Starbucks’ chief partner officer, echoed the belief that an agreement could be reached quickly.

“For months, we have been at the negotiating table, working in good faith with United Workers and representatives from across the country to reach agreements that make sense for partners and for the long-term success of Starbucks,” Kelly said. “We have reached more than 30 tentative agreements on full contract terms.”

“Our commitment to negotiation has not changed,” she added. He added, “The labor union has moved away from the table, but if they are ready to return, we are ready to talk. We believe we can move quickly to reach a reasonable agreement.”

Reuters had previously reported on letters from lawmakers.

— CNBC’s Amelia Lucas contributed to this report