More than 1,000 unionized Starbucks employees across the United States walked off the job Thursday, kicking off a strike at 65 stores in protest of the company’s stalled contract negotiations. The timing coincides with Red Cup Day, one of the coffee chain’s busiest promotional events, when Starbucks gives away free reusable cups to customers who purchase a holiday drink.

The strike, organized by Starbucks Workers United, targets high-traffic stores in 45 cities, including New York, Philadelphia, Minneapolis, San Diego, St. Louis, Dallas, Columbus, and the company’s hometown of Seattle. Organizers said the action is open-ended, with additional stores ready to join if Starbucks fails to reach an agreement.

Despite the walkout, Starbucks emphasized that the vast majority of its 10,000 company-owned U.S. stores — plus 7,000 licensed locations — remain open and operating normally.

A Labor Dispute Brewing Since 2021

The strike reflects mounting frustration among employees over the company’s failure to finalize a first union contract. The first Starbucks store to unionize was in Buffalo, New York, in 2021, sparking a nationwide movement among baristas seeking better wages, scheduling, and workplace protections.

In late 2023, the company promised to complete contract negotiations by the end of 2024. However, workers say that progress has slowed since former CEO Laxman Narasimhan — who made that pledge — was replaced by Brian Niccol, the company’s current chairman and CEO.

Workers Demand Higher Pay and Fairer Hours

Unionized workers say they are striking for better pay, improved staffing levels, and more consistent scheduling. Many employees report they aren’t getting the 20 hours per week required to qualify for benefits. Others cite rising workloads and understaffed stores leading to longer customer wait times.

The union has also accused Starbucks of retaliating against union supporters and closing unionized stores, claiming 59 locations were shut down in September under what the company called a reorganization plan.

Workers are also pushing for Starbucks to address hundreds of unfair labor practice charges related to alleged firings, policy changes, and restrictions on restroom use for non-paying customers.

Starbucks Defends Its Wages and Benefits

In response, Starbucks maintains that it already provides the best compensation and benefits in retail, with an average pay and benefits package worth $30 per hour.

The company highlights perks such as up to 18 weeks of paid family leave and full tuition coverage for four-year college degrees. Starbucks Chief Partner Officer Sara Kelly said in a letter to employees last week that the union “walked away from the bargaining table” earlier this year.

Kelly added that the company remains “ready to talk” and believes a reasonable deal can be reached quickly, noting that employee surveys show most partners are satisfied with their jobs and that barista turnover is half the industry average.

Symbolism and Visibility of the Strike

The Red Cup Day strike is the third consecutive annual walkout by Starbucks unionized employees during the holiday promotion. Similar actions in 2022 and 2023 had limited operational impact but drew significant media attention.

According to labor relations expert Todd Vachon from Rutgers University, such high-visibility strikes can be effective in shaping public perception. “Retail depends heavily on the connection between workers and customers,” Vachon said, adding that public solidarity can pressure the company to act.

Sales Rebound Amid Labor Challenges

Despite ongoing labor disputes, Starbucks reported a 1% increase in same-store sales for the July–September quarter — its first gain in nearly two years. CEO Brian Niccol has focused on revamping stores, improving staffing for peak hours, and prioritizing in-store orders over mobile ones.

The company’s 2024 holiday launch, which included the limited-edition glass Bearista cup, saw overwhelming demand, with many stores selling out within hours. Starbucks declined to confirm whether the item will be restocked before the holidays.

As union efforts expand and negotiations stall, Starbucks faces a growing test of how it balances its brand image as an ethical employer with the realities of an increasingly organized workforce.

Source: AP News – Starbucks workers kick off 65-store US strike on company’s busy Red Cup Day

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Settlement Details

The agreement, which received preliminary approval last week from Judge Charles Adams of the Santa Clara County Superior Court, will benefit a class of at least 6,632 employees who worked at Google in California between February 15, 2018, and December 31, 2024. The judge described the settlement as fair, reasonable, and a positive outcome for the affected employees.

Despite agreeing to the settlement, Google denies any wrongdoing. Company spokesperson Courtenay Mencini reaffirmed Google’s commitment to fair pay, hiring, and career advancement, stating:
“We continue to disagree with the allegations that we treated anyone differently and remain committed to paying, hiring, and leveling all employees fairly.”

Claims Against Google

The lawsuit was led by Ana Cantu, a former Google employee who identifies as Mexican and racially Indigenous. Cantu filed the suit on behalf of Hispanic, Latinx, Indigenous, Native American, American Indian, Native Hawaiian, Pacific Islander, and Alaska Native employees.

According to the lawsuit:

• Cantu excelled in her role over seven years in Google’s People Operations and Cloud departments but was denied promotions and salary increases.
• White and Asian employees were allegedly placed in higher job levels for performing the same work.
• Employees who raised concerns reportedly faced withheld raises and promotions.
• The lawsuit argued that Google’s actions violated the California Equal Pay Act.

Cantu left Google in September 2021.

Exclusion of Black Employees from the Class

As part of the settlement, Black employees were excluded from the class after negotiations between Cantu’s lawyers and Google. The decision to remove Black employees from the class was a key factor in finalizing the settlement agreement.

Financial Breakdown of the Settlement

Of the $28 million settlement, net proceeds will total $20.4 million after deductions, which include:

• $7 million for legal fees and penalties related to California’s Private Attorneys General Act.
• Other administrative costs related to the case.

A final approval hearing for the settlement is scheduled for September 11.

Next Steps

As the court reviews the settlement for final approval, impacted Google employees in California will have the opportunity to claim their share of the settlement funds. Meanwhile, Google continues to defend its employment practices, despite agreeing to resolve the case.

Cantu’s legal team has yet to comment on the settlement as of Tuesday.

This case underscores the ongoing challenges surrounding pay equity and career advancement in major tech companies, raising broader questions about diversity, inclusion, and corporate accountability in Silicon Valley.

Source: CNN – Google agrees to pay $28 million to settle claims it favored white and Asian workers

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Costco Wholesale (COST.O) is set to increase wages for most of its hourly U.S. store employees, raising top-tier worker pay beyond $30 per hour, according to a company memo shared with employees this week.

Pay Increase Details

• The wage increase will be implemented gradually over the next three years.
• In the first year, top-of-the-scale employees will see a $1 increase to $30.20 per hour.
• Over the following two years, wages will continue to rise by $1 per year.
• Entry-level employees will also receive a 50-cent increase, bringing their hourly pay to $20.

Union Pressure & Negotiations

The decision follows growing pressure from Costco Teamsters union members, who recently voted in favor of a nationwide strike.

• Earlier this month, 85% of union members voted to authorize the strike ahead of a Jan. 31 contract deadline.
• The Teamsters union represents more than 18,000 Costco workers across the U.S.

Company Statement

Costco remains confident that its wages and benefits will continue to outpace competitors in the retail industry.

“With these changes, we believe our hourly wages and benefits will continue to far outpace others in the retail industry,” CEO Ron Vachris stated in the memo.

This wage adjustment solidifies Costco’s reputation for offering some of the highest pay and benefits in the retail sector.

Source

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