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Union workers demand better pay, more staff, better

schedules

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Strike could reach 'hundreds of stores' by Dec. 24, union

says

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Starbucks ( SBUX ) says ready to return to bargaining table

By Savyata Mishra, Gursimran Mehar and Renee Hickman

Dec 21 (Reuters) - Some members of the Starbucks ( SBUX )

workers' union that represents more than 10,000

baristas walked off their jobs in multiple U.S. cities on

Friday, citing unresolved issues over wages, staffing and

schedules.

The five-day strike, which began on Friday and closed

Starbucks ( SBUX ) cafes in Los Angeles, Chicago and Seattle, will expand

to Columbus, Denver, and Pittsburgh through Saturday, the union

said in a statement.

This is the latest in a series of labor actions that have

picked up pace across service industries following a period when

workers at manufacturers in the automotive, aerospace and rail

industries won substantial concessions from employers.

At Starbucks ( SBUX ), the Workers United union, which represents

employees at 525 stores across the U.S., said late on Thursday

that walkouts would escalate daily, and could reach "hundreds of

stores" nationwide by Christmas Eve.

"It's estimated that 10 stores out of 10,000

company-operated stores did not open today," Starbucks ( SBUX ) said,

adding that there was no significant impact to store operations

on Friday.

Around 20 people joined a picket line at a Starbucks ( SBUX )

location on Chicago's north side, buffeted by snow and wind, but

cheering in response to the honking horns of passing cars.

A few confused customers tried to walk into the closed store

before strikers began chanting, but union member Shep Searl said

the reaction had been mostly positive.

Searl said 100% of the unionized workers at the Starbucks ( SBUX )

location in Chicago's Edgewater neighborhood were participating

in the strike, and according to the workers, they have been

subject to numerous unfair labor practices including write-ups,

"captive-audience" meetings and firings.

The union member said they made about $21 an hour and added,

"that would have been a great wage in 2013."

It is an inadequate wage, the baristas said, given inflation

and the high cost of living in a large city, especially since

they rarely get 40-hour work weeks.

WORKERS SNUB OFFER

Negotiations between the company and Workers United began in

April, based on an established framework agreed upon in

February, which could also help resolve numerous pending legal

disputes.

The company said on Thursday it has held more than nine

bargaining sessions with the union since April, and reached more

than 30 agreements on "hundreds of topics," including economic

issues.

The Seattle-headquartered firm said it is ready to continue

negotiations, claiming the union delegates prematurely ended the

bargaining session this week.

The union, however, said in a Facebook post on Friday that

Starbucks ( SBUX ) had yet to present a serious economic proposal with

less than two weeks remaining until a year-end deadline.

The workers' group also snubbed an offer of no immediate

wage hike and a guarantee of a 1.5% increase in future years.

"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. This is not sustainable,"

Starbucks ( SBUX ) said on Friday.

In response to Starbucks' ( SBUX ) statement on the proposals,

Michelle Eisen, a Starbucks ( SBUX ) barista and bargaining delegate,

said, "Starbucks' ( SBUX ) characterization of our proposals is

misleading and they know it. We are ready to finalize a

framework that includes new investments in baristas in the first

year of contracts."

Separately, the baristas' union said on Friday that it filed

a new labor practice charge against the coffee house, alleging

Starbucks ( SBUX ) "refused to bargain and engaged in bad faith

bargaining" over economic issues.

Hundreds of complaints have been filed with the National

Labor Relations Board (NLRB), accusing Starbucks ( SBUX ) of unlawful

labor practices such as firing union supporters and closing

stores during labor campaigns. Starbucks ( SBUX ) has denied wrongdoing

and said it respects the right of workers to choose whether to

unionize.

WORKING ON A TURNAROUND

Last month, the NLRB said that Starbucks ( SBUX ) broke the law by

telling workers at its flagship Seattle cafe that they would

lose benefits if they joined a union.

"It's (the strike) taking place during one of the busiest

times of the year for Starbucks ( SBUX ), which could magnify its impact

while bringing unwanted public scrutiny into the company's labor

practices," Emarketer analyst Rachel Wolff said.

The coffee chain is working on a turnaround under its newly

appointed top boss, Brian Niccol, who aims to restore "coffee

house culture" by overhauling cafes and simplifying its menu

among other measures.

"Given how much Starbucks ( SBUX ) is already struggling to win over

customers, it can ill afford any negative publicity - or impact

to sales - that the strike could bring," Wolff said.

The Starbucks ( SBUX ) workers' strike comes in the same week as

Amazon.com ( AMZN ) workers at seven U.S. facilities walking off

the job on Thursday, during the holiday shopping rush.

There were 33 work stoppages in 2023, the most since 2000,

though far lower than in past decades, data from the U.S. Bureau

of Labor Statistics showed.