Starbucks Engages in Collective Bargaining with Workers United to Settle Long-Standing Fair Organizing Dispute

By Moon Harper

Feb 28, 2024 11:35 PM EST

Starbucks stated on Tuesday that it would start talking about potential collective bargaining agreements with the labor union representing nearly 10,000 employees across about 400 stores.

The coffeehouse chain's move comes almost three years after Workers United, a labor union covering American and Canadian workers, first organized baristas at a Starbucks location in Buffalo, New York.

Starbucks' Commitment to Collective Bargaining

Starbucks announced in a statement on Tuesday its commitment to fostering a positive relationship with Workers United, aiming to support Starbucks partners. The decision came after mediation discussions last week, revealing a constructive path forward on the future of organizing and collective bargaining at Starbucks amidst ongoing brand and IP litigation.

Alongside initiating discussions, Starbucks agreed to grant employees represented by Workers United the ability to accept credit card tips from customers and other benefits as a gesture of good faith, which was previously announced in May 2022.

Workers United stated that while there is much work to be done, the development of this framework signifies a significant step forward and underscores the shared commitment to collaborative work with mutual respect.

Starbucks and the union started improving their relationship in December 2023 when the company sent a letter to Workers United to suggest a way forward for productive contract negotiations.

In the letter, Starbucks shared that the current deadlock should not be acceptable to either party, emphasizing that the impasse has not benefited Starbucks, Workers United, or their partners. Hence, Starbucks sought support and agreement from Workers United to restart bargaining.

Before the letter was sent in December, neither parties had communicated for seven months, as reported by the Associated Press.

Unresolved Legal Matters with The Labor Union

Despite efforts to improve relations, both sides still have unresolved legal matters, which Starbucks stated on Tuesday it aims to resolve with the labor union.

In October 2023, the company filed a lawsuit against Workers United for sharing pro-Palestinian social media posts from its account, which angered many Starbucks customers, endangered other employees' safety, and harmed the chain's reputation, per court records. The lawsuit was filed in the Southern District of Iowa.

The company sued Workers United for using unauthorized Starbucks logos in fundraising, merchandise sales, and promoting political and social causes. According to court records, Workers United used "copycat logos" that resembled Starbucks logos without permission, which the company claimed misled the public about Starbucks' involvement.

As per court documents, Starbucks requested a jury trial and permanent injunction to prevent the union from using logos resembling theirs. Workers United filed a countersuit against Starbucks in a Pennsylvania federal court, seeking permission to use Starbucks' name and similar logos. Workers United also accused Starbucks of defamation by linking the union to terrorism.

Workers United's Red Cup Rebellion

After filing the lawsuit, Starbucks announced in November 2023 that it would raise hourly wages and benefits for many U.S. workers, following a fiscal year with record sales for the company, as stated by Starbucks.

During the same month, Workers United organized a strike that resulted in thousands of Starbucks employees from hundreds of locations walking out on Red Cup Day. According to a news release from Workers United, the union called it the "Red Cup Rebellion," alleging that Starbucks was unlawfully refusing to negotiate with baristas on matters such as staffing and scheduling.

The union stated that promotional days like Red Cup Day, half-off ThursYays, and Buy One Get One Free promos result in a surge of customers at stores without extra staff to handle the increased orders.