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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Starting May 12, Starbucks baristas across the U.S. will have to follow a stricter dress code—one that’s already stirring up controversy among employees.

Under the updated guidelines, employees must wear solid black shirts and khaki, black, or blue denim bottoms. Shirts can be short- or long-sleeved, and either collared or collarless. To help ease the transition, the company is providing two free T-shirts to each barista.

According to Starbucks, the move is about consistency and customer connection. The company says the simplified dress code will make its iconic green apron pop more and create a more familiar, welcoming environment for customers.

“By updating our dress code, we can deliver a more consistent coffeehouse experience that will also bring simpler and clearer guidance to our partners,” Starbucks said in a blog post. “That means they can focus on what matters most: crafting great beverages and fostering connections with customers.”

The change is part of Starbucks’ broader effort to improve the in-store experience after years of shifting customer expectations and operational challenges.

But not all baristas are thrilled. Starbucks Workers United, the union representing employees at over 550 unionized locations, says the company is jumping the gun. The group claims it already negotiated a tentative dress code agreement with Starbucks and is pushing back against any unilateral changes before a final labor agreement is reached.

“Instead of addressing the most pressing issues baristas have been raising for years, Starbucks is prioritizing a limiting dress code that won’t improve the company’s operation,” said Jasmine Leli, a barista and union delegate.
“They’re forcing baristas to pay for new clothes when we’re struggling as it is on Starbucks wages and without guaranteed hours.”

The new rules mark a pivot from the more relaxed approach Starbucks adopted in recent years. Back in 2016, the company broadened its dress code to allow more self-expression, adding gray, navy, dark denim, and brown shirt options—along with tasteful patterns. In 2019, it even permitted employees to wear a single facial piercing, which is still allowed under the new policy.

Now, Starbucks appears to be dialing things back in the name of consistency.

Source: AP News – Starbucks imposes new limits on what baristas can wear under their green aprons

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Thousands of federal employees across the U.S. were left reeling Friday as the Trump administration moved aggressively to shrink the federal workforce, ordering agencies to fire probationary employees who have yet to qualify for civil service protections.

Shockwaves Across the Country

While much of the administration’s focus has been on disrupting bureaucracy in Washington, the layoffs extend far beyond the capital. Workers from Michigan to Florida were blindsided by termination notices, leaving many confused, angry, and uncertain about their future.

Adding to the chaos, some employees received layoff notices despite already accepting buyout agreements—which were supposed to guarantee their salaries until September 30. By Friday evening, the Office of Personnel Management (OPM) acknowledged that some employees may have been fired in error, promising that buyout agreements would be honored.

“This has been slash and burn,” said Nicholas Detter, a natural resource specialist in Kansas, who was abruptly fired via email Thursday night. “None of this has been done thoughtfully or carefully.”

Scope of the Firings Remains Unclear

The White House and OPM declined to say how many probationary employees—those typically on the job for less than a year—have been let go so far. However, government records show that as of March 2024, 220,000 workers had less than a year of service.

Agencies were given a deadline of 8 p.m. Tuesday to complete the layoffs, according to a source familiar with the plan who spoke on condition of anonymity.

A Sweeping Effort to Cut the Workforce

The layoffs are part of a broader initiative led by Elon Musk’s Department of Government Efficiency (DOGE) to downsize federal employment. In an executive order Tuesday, Trump instructed agency leaders to prepare for “large-scale reductions” after a voluntary buyout program attracted only 75,000 participants.

Who’s Being Laid Off?

• Veterans Affairs (VA): More than 1,000 employees, including researchers working on cancer treatment, opioid addiction, prosthetics, and burn pit exposure.
• Education Department: Dozens of special education specialists and student aid officials were dismissed, according to a workers’ union.
• Centers for Disease Control and Prevention (CDC): Nearly 1,300 probationary employees—one-tenth of the agency’s workforce—are being forced out.
• Department of Agriculture: Secretary Brooke Rollins confirmed that layoffs “will be forthcoming” after welcoming Musk’s team with “open arms.”

“Clearly, it’s a new day,” Rollins said at the White House. “I think the American people spoke on November 5th—they believe government is too big.”

Workers Speak Out

Veteran Fired From VA Medical Center

Andrew Lennox, a 10-year Marine veteran, was part of a supervisor training program at the VA Medical Center in Ann Arbor, Michigan. On Thursday evening, he received an unexpected email: he was fired.

“In order to help veterans, you just fired a veteran,” said Lennox, 35, who served in Iraq, Afghanistan, and Syria.

Despite starting his VA career just three months ago, he said he “would love nothing more” than to continue helping veterans.

Foreign Affairs Specialist Laid Off in Middle of a Meeting

David Rice, a disabled Army paratrooper, was working as a foreign affairs specialist at the Department of Energy when he was abruptly fired.

Rice had just logged into a virtual meeting with Japanese representatives on Thursday night when he saw an email notifying him of his termination.

“It’s just been chaos,” said Rice, 50, who had recently bought a home in Melbourne, Florida, after securing his federal job.

Although Rice supports the administration’s goal of improving government efficiency, he strongly objects to what he calls a “random, scattershot approach.”

Fired Despite Signing Buyout Agreements

Some employees, like Nicholas Detter, had already agreed to the administration’s buyout deal, expecting it to shield them from sudden layoffs. Instead, they received immediate termination notices.

Detter, 25, had worked for the Natural Resources Conservation Service at the Department of Agriculture, helping farmers reduce soil erosion and water pollution. Despite receiving “completely positive” performance reviews, he was fired Thursday night.

“You’re just a pawn in a much bigger struggle,” Detter said. “Elon Musk seems to have taken on this personal mission to shrink the government.”

His Kansas office, which already struggled with understaffing, saw two out of four employees laid off.

Unions and Lawmakers Push Back

• The National Treasury Employees Union (NTEU) and other labor groups filed a lawsuit Thursday, arguing the terminations are “unlawful.”
• Doreen Greenwald, NTEU president, warned that these cuts “will have a devastating impact on agency missions.” Many agencies are already struggling due to years of frozen or slashed budgets.
• Advocacy group Democracy Forward filed a complaint with the Office of Special Counsel, requesting an investigation into whether the mass firings violated federal personnel policies.

Protests erupted Friday morning outside the Hubert H. Humphrey Building in Washington, with workers fearing this is just the beginning.

“They’re picking us off, one by one,” said a federal contractor who declined to be named. “First, it’s the probationary workers. Then we’re next.”

Murkowski: “This Won’t Fix the Federal Budget”

Republican Senator Lisa Murkowski (Alaska) criticized the indiscriminate cuts, writing on X (formerly Twitter):

“Indiscriminate workforce cuts aren’t efficient and won’t fix the federal budget.”

Murkowski’s office has demanded answers from federal agencies but has received “evasive and inadequate” responses so far.

Will the Layoffs Reduce the Deficit?

Experts say the cuts will have little impact on the national deficit. The federal government spends $270 billion annually on civilian workers, with 60% going to Defense, Homeland Security, and Veterans Affairs.

Even if every federal employee were fired, the U.S. would still run a deficit exceeding $1 trillion.

Additionally, these mass layoffs could hurt economic data—potentially turning job growth negative in upcoming reports. The last time the economy lost jobs was in December 2020, during the pandemic.

“It’s very plausible that job growth could turn negative,” said Martha Gimbel, executive director of the Budget Lab at Yale University.

Impact Beyond the Workers

For those fired, the impact isn’t just personal—it affects the people they serve.

“We were actually out there helping people,” said Rice, the former Department of Energy employee. “This work mattered.”

Source

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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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