The Starbucks union authorizes an indefinite strike as the holiday season begins

Starbucks The workers union has allowed an indefinite strike that could begin on Red Cup Day, one of the cafe chain’s biggest sales days of the year, the union announced Wednesday.

The union is preparing to strike in more than 25 cities if it does not reach a collective bargaining agreement with Starbucks by November 13, when Red Cup Day falls this year. The two parties did not enter into active negotiations to reach a contract after the collapse of the talks between them 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.

Authorization to strike received 92% of the vote, according to Starbucks Workers United.

The union is pushing for improved hours, increased wages and the resolution of hundreds of unfair labor practice charges against Starbucks.

The strike would interfere with Starbucks’ annual giveaway of reusable red cups bearing the company’s logo with any purchase. The freebie has become a collector’s item for the coffee giant’s biggest fans.

With no deadline in sight, a strike would also disrupt Starbucks’ broader holiday season, which falls during the first quarter of the company’s fiscal year and is considered one of the busiest times of the year for the coffee chain. Customers flock to its cafes for seasonal drinks like mint mochas, as well as gift cards and other goods.

Workers United, which began organizing at Starbucks in 2021, says it now represents more than 12,000 workers at more than 650 stores. (The company told CNBC that the union only represents workers at 550 cafes, which accounts for some store closures over time.)

Starbucks said in a statement that it will be ready to serve customers across its approximately 18,000 company-operated and licensed stores this holiday season.

“We are disappointed that United Workers, which represents only about 4% of our associates, voted to allow a strike rather than return to the bargaining table,” Starbucks spokesman Jaci Anderson said. “When they are ready to return, we are ready to talk.”

Starbucks said any agreement with the union must reflect the fact that it “already offers the best job in retail, including more than $30 per hour average pay and benefits to hourly associates. The facts show that people love working at Starbucks. Associate engagement is up, turnover is nearly half the industry average, and we get more than 1 million job applications annually.”

The company is in the midst of a turnaround plan under new CEO Brian Nicol, dubbed “Back to Starbucks,” which is beginning to show momentum. Starbucks reported in its fiscal fourth quarter that its same-store sales returned to growth for the first time in nearly two years. The coffee chain’s global store sales rose 1%, boosted by international markets. US same-store sales were flat during the quarter but turned positive in September.

Starbucks also announced a $1 billion restructuring plan in September that includes closing about 500 of its North American stores, according to analyst estimates, and laying off 900 workers in non-retail jobs.