Starbucks CEO Brian Niccol tells FOX Business why the company enhanced its parental leave benefit.
Starbucks is responding as some of its union workers took to picket lines Friday after Starbucks Workers United (SBWU) baristas voted to authorize a strike earlier this week.
According to the coffee chain, the union is seeking pay hikes that are “not sustainable.”
Starbucks says the pay increases sought by its unionized workers are “not sustainable.” (Joe Raedle/Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 102.46 | +0.95 | +0.94% |
“Workers United proposals call for an immediate increase in the minimum wage of hourly partners by 64% and by 77% over the life of a three-year contract,” Starbucks said in a statement. “This is not sustainable.”
According to Starbucks, the average pay for its workers is currently over $18 per hour, and, taken together with benefits, is worth more than $30 an hour.
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“We are ready to continue negotiations to reach agreements,” the company added. “We need the union to return to the table.”
SBWU members voted to authorize the strike on Tuesday in the lead-up to a meeting between the union and the company for further negotiations.
Unionized Starbucks locations in Los Angeles, Seattle and Chicago launched their picket lines on Friday, and the strike will escalate, expanding to more stores across the country through Christmas Eve.
Thousands of Starbucks workers at over 525 stores belong to SBWU.
A Starbucks spokesperson said in a statement Friday, “There has been no significant impact to our store operations. We are aware of a disruption at a small handful of stores, but the overwhelming majority of our US stores remain open and serving customers as normal.”
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The union and Starbucks started working on a “foundational framework” in April, and the sides most recently met in September. That meeting occurred not long after Brian Niccol became the coffeehouse chain’s CEO.
Charlotte, North Carolina, Starbucks Coffee, baristas behind counter making drink. (Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
Niccol announced Monday the company will be “more than doubling” the paid parental leave it offers to U.S. store employees who work at least an average of 20 hours per week. The expanded benefit, which will include up to 18 weeks for birth parents and up to 12 weeks for non-birth parents, goes into effect in the spring.
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The company’s workforce totaled about 361,000 at the end of September, including 211,000 in the U.S. at Starbucks-operated stores, corporate support and other areas.
FOX Business’ Aislinn Murphy and Reuters contributed to this report.
