The Starbucks Workers Union prepares to vote on whether to authorize a strike

Starbucks United Workers begins voting on authorization to strike on Friday, as the union representing baristas tries to secure a contract with the coffee giant.

The union also said it is planning a wave of marches and sit-ins across the country with baristas and its allies.

Voting on whether to allow a strike in union cafes will be open for several days. If approved, the strike itself will be open, with its details specified. The union said that with the vote taking place, seventy marches and sit-ins will be held from Friday until November 1 in 60 cities. If the union votes in favor of the strike, this will be the third national strike since last December.

The two sides are not actively negotiating a contract after their talks collapsed in December 2024. In February, the two parties entered into mediation, and hundreds of barista delegates voted against the economic package proposed by Starbucks in April.

The United Workers Organization says it is seeking to secure a contract that addresses three main issues. The union is demanding “better hours to improve recruitment,” a wage increase (although it has not specified a wage figure) and “resolution of hundreds of outstanding unfair labor practice charges.” The labor union, which began organizing at Starbucks in 2021, now represents more than 12,000 workers at more than 650 stores. The number of unionized stores remains small, with Starbucks having more than 18,000 locations in North America that are company-operated or licensed.

“We will do whatever it takes to secure this contract,” Yasmine Lilly, a barista at a unionized store in Buffalo, New York, who participated in regional and national bargaining, told CNBC in an interview. The union, which organized a nationwide wave of sit-ins in 35 cities in September and October, claims it would cost the company less than an average sales day to settle the contract.

“The labor union only represents about 4% of our partners, but they have chosen to walk away from the negotiating table. If they are ready to come back, we are ready to talk,” Starbucks spokesman Jaci Anderson said in a statement.

She added that any agreement must reflect the fact that Starbucks already offers the best function in retail. “Hourly associates earn more than $30 per hour on average in pay and benefits, and we are investing more than $500 million to put more associates in stores during busy times.”

“The facts show that people love working at Starbucks. Associate engagement is up, employee turnover is nearly half the industry average, and we get more than a million job applications annually,” Anderson said.

Starbucks is scheduled to report fourth-quarter earnings on Wednesday. The stock is down 6% year to date, and same-store sales have declined for six straight quarters.

The company is in the midst of a turnaround plan under new CEO Brian Nicol, dubbed “Back to Starbucks.” As part of the strategy, the company announced the introduction of Green Apron Service plans, which rely on warm and engaging interactions between baristas and customers in hopes of making visits to Starbucks a habit.

The program is supported by changes to ensure proper staffing and better technology to keep service times fast. The company said it was born out of growth in digital orders, which now make up more than 30% of sales, and feedback from baristas.

Starbucks said the Green Apron Service push is the largest investment the company has ever made in hospitality and its store employees. On the company’s third-quarter earnings call, CFO Cathy Smith said Starbucks will invest more than $500 million in operating hours across its company-owned cafes next year, starting with the rollout of Green Apron Service. Starbucks also began a pilot program in late September for an assistant store manager position. It now has 62 assistant store managers in newly created leadership roles across six regions. The company says 90% of these hires are internal promotions.

Recruitment has been an ongoing issue for baristas who have organized themselves. Nicol has faced somewhat less scrutiny from the union than his predecessors, namely former CEO Howard Schultz, who took a more combative approach.

In September, the company announced a $1 billion restructuring plan that includes closing about 500 of its stores in North America, according to analyst estimates, and laying off 900 workers in non-retail jobs. The union says it secured additional benefits for workers by negotiating impacts at the 59 unionized stores that would close as a result of the restructuring, including severance even if they rejected the offer of a transfer and extended health benefits.

At the time of the restructuring, Starbucks said in a statement that “given the industry-leading offer to affected associates — including reassignment opportunities, where possible and generous severance — we were able to quickly reach out and agree with Workers United to assist similarly represented partners through this transition. This reflects our commitment to partner care.”

The company added that it has reached out to United Workers to work on a framework for how the changes will impact baristas at unionized cafes.