Starbucks raises wages for union workers, improves relationship with Workers United

Starbucks workers at unionized cafes will now be receiving the same pay hikes that their nonunion colleagues received in May 2022. This move comes as a positive development in the ongoing negotiations between the coffee giant and the union representing some of its baristas, Workers United.

The wage increases are seen as a gesture of goodwill from Starbucks towards Workers United, an affiliate of the Service Employees International Union that has organized over 300 company-owned Starbucks locations. Both parties have expressed a commitment to finding a constructive path forward through mediation discussions.

The announcement of wage increases and the start of discussions on collective bargaining agreements mark a significant step in improving the relationship between Starbucks and the union since the first Starbucks location unionized in December 2021. The wage increases will benefit employees with varying levels of tenure, with some set to receive a 5% or 7% increase above the market's start rate.

In addition to the wage increases, Starbucks has also agreed to provide unionized cafes with credit card tipping, a benefit that has been available in nonunion stores for over a year. These actions demonstrate Starbucks' willingness to address the concerns and demands of its unionized workers.

The coffee chain implemented the wage hikes under former CEO Howard Schultz, who faced backlash for his aggressive stance against the union. However, current CEO Laxman Narasimhan has been working towards improving the relationship between Starbucks and Workers United.

Overall, the recent developments between Starbucks and Workers United show a positive shift towards resolving the ongoing labor disputes and improving working conditions for Starbucks employees.


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