The Starbucks United Workers Union sends a contract proposal to the company

Starbucks United Workers presented the company with a comprehensive contract proposal last month, the union said in a call with investors on Friday, as baristas try to strike their first employment agreement with the coffee giant.

Here’s what baristas asked for in this suggestion:

• Protecting unionized baristas against discrimination, unfair dismissal, and temporary or permanent store closures
• The minimum wage is at $17 per hour, down from the previous proposal of $20 per hour but still higher than the company’s current starting wage of $15.25 to $16 per hour in 43 states.
• Annual increases of 4%
• A process for coffee representatives, management and unions to resolve workforce complaints
• Dress code approved by the Federation
• Requirement of at least three workers on the floor at all times and enforceable employee protection and safety procedures
• A mandate to offer open hours to current employees before hiring new baristas
• Resolve hundreds of pending unfair labor practice charges

The union said Starbucks has not yet responded to the substance of the proposal.

The coffee giant told CNBC it wants to resume talks with United Workers as soon as this month.

“Starbucks has proposed resuming in-person negotiations with United Workers on March 30 and remaining available to continue negotiations throughout April,” Starbucks spokesman Jaci Anderson said in a statement.

United workers represent about 6% of Starbucks-owned locations in the United States, according to regulatory filings.

This announcement comes months after bargaining talks between the two parties reached a dead end. The last time Starbucks and the union held formal negotiations was in December 2024. Several months later, the two sides met to mediate, but hundreds of barista delegates voted against the economic package the company proposed in April.

During the holiday season, baristas in more than 40 cities held an indefinite strike that lasted several weeks. The outage led to the coffee chain temporarily closing dozens of stores during its busiest times, although the company said it did not materially impact its business.

Starbucks’ tense relations with baristas are also likely to receive attention at its annual shareholders meeting, which will be held on March 25.

A group of investors led by the union’s SOC Investment Group is urging shareholders to vote against the re-election of directors Jørgen Vig Knudstorp and Beth Ford, citing their oversight roles linked to the company’s labor relations. The agency’s advisory firm, Glass Lewis, recommended a vote against re-election of Ford, chairman of the nominating and corporate governance committee.

The long battle between the company and its coffee providers poses a potential roadblock for Starbucks as it tries to turn around its stagnant U.S. business. During the company’s holiday period, traffic at its store spiked for the first time in two years.

In Starbucks’ most recent annual filing, the company noted potential risks ahead, such as further downtime or damage to its reputation and brand.