Update: On June 5th, The Starbucks Workers United union filed 18 additional union election petitions with the NLRB. The stores are located in 14 different states. Workers from the 18 stores co-authored a letter to Starbucks CEO Laxman Narasimhan to announce their organizing push. Workers United and Starbucks Workers United (SBWU) seem to be leveraging the ongoing negotiations to engage in more organizing success against Starbucks.
Employers like Starbucks and Compass Coffee are responding differently to significant unionization efforts among baristas and other employees in the coffee and café industry.
According to various news reports, Starbucks's recent two-day bargaining session in Chicago with the Workers United union yielded a tentative agreement on several issues, such as job protections and support and training for unionized employees. Neither Starbucks nor Workers United disclosed the status of outstanding issues or a timetable for further negotiations.
Workers United, which began its drive to organize Starbucks employees in August 2021, now represents over 10,000 employees at more than 425 locations across 43 states and Washington, D.C. The union aims to establish a foundational framework covering wages, scheduling policies, and healthcare access. Starbucks, with nearly 10,000 stores in the U.S., is also negotiating with other unions, including the International Brotherhood of Teamsters and United Steelworkers.
Despite the reported progress, the unionization effort still presents many significant challenges for Starbucks. The union has accused the company of various unfair labor practices, though Starbucks denies these charges. The drawn-out bargaining process has seen hundreds of complaints filed with the National Labor Relations Board, and resolving these charges is a thorny issue for the coffee giant. Any collective bargaining agreement remains a long way off.
In Washington, D.C., workers at seven Compass Coffee stores have announced their intention to unionize, pressing the chain to end its no-tipping policy and improve benefits and working conditions. Organized under Workers United, the same union leading efforts at Starbucks, 84% of union-eligible employees have signed authorization cards. The National Labor Relations Board requires at least 30% of eligible voters to qualify for a union election.
Compass Coffee employees are pushing for the reinstatement of tipping, which was replaced by a wage bump that they claim reduced their take-home pay. They also seek benefits changes, citing the suspension of 401(k) plans and increased healthcare costs as concerns.
Compass Coffee CEO Michael Haft has committed to addressing employee concerns through constructive dialogue but remains undecided on recognizing the union.
The organizing trend in coffee shop industries has not gone well at other locations around the country where baristas have decided to organize.
In Pittsburgh, Adda Coffee and Tea House employees demanded that the owner recognize their union in January 2024. The business closed all its locations the following day, resulting in 30 employees losing their jobs.
Last month, The Wydown, a Washington, D.C. coffee shop whose workers recently announced plans to unionize, abruptly shuttered both of its locations.
The efforts to organize baristas across the country remain volatile and will not likely ease anytime soon. These efforts are not limited to major chains like Starbucks but include smaller, independent coffee shops nationwide.
These unionization efforts present a complex challenge for employers. While some companies, like Starbucks, are engaging in negotiations, others respond with resistance or even closure, as seen with the Adda Coffee and Tea House and The Wydown.
While unionization among baristas and cafe workers remains volatile, it also presents an opportunity for employers to identify issues and develop positive workplace solutions before facing a union campaign.
