Nov 10 -
Twenty-six U.S. senators and 82 House representatives have
written to Starbucks ( SBUX ) CEO Brian Niccol, urging the
company to resume talks with its workers union, the lawmakers
said on Monday.
"We have heard of a troubling return to union busting,"
states the letter from the group of senators led by Senator
Bernie Sanders, which was seen by Reuters. It said Starbucks ( SBUX )
must "bargain a fair contract in good faith with these
employees."
House representatives, led by the House Labor Caucus and
Representative , penned a similar letter sent on Monday. No
Republicans signed either letter.
SIDES BLAME EACH OTHER
Talks between Starbucks ( SBUX ) and Starbucks Workers United, which
represents roughly 9,500 workers, began in April last year but
have since stalled. Both sides blame the other for ending talks
and say they are ready to return to discussions.
Starbucks ( SBUX ) said in a statement the union represents only 4%
of its workforce and that the company already offers "the best
job in retail." Starbucks ( SBUX ) offers employees who work at least 20
hours a week benefits including healthcare, parental leave, and
tuition for online classes at Arizona State University.
Starbucks Workers United has filed more than 100 charges
against the company since December for alleged unfair labor
practices, such as retaliation against unionizing baristas,
according to the letters.
The letters also said Starbucks ( SBUX ) "has the money to reach a fair
agreement," noting that in 2024 Starbucks ( SBUX ) spent several billion
dollars on dividends and stock buybacks and compensated Niccol
$95 million, which largely covered shares he left at Chipotle.
Starbucks ( SBUX ) said its stock actions benefited workers who own
shares through a company program as well as institutional
investors and pension funds.
The union said last week workers are prepared to strike if a
contract is not finalized by November 13, the company's
high-sales "Red Cup Day," and that strikes could hit more than
25 cities initially and escalate if there is no progress.
Niccol has sought to overhaul U.S. store operations in a bid
to win back customers. The coffee company suffered six quarters
of sales declines before October 29, when the company reported
1% global sales growth.
Starbucks ( SBUX ) in September shut more than 600 stores, including its
flagship unionized outlet in Seattle, and trimmed its corporate
workforce as part of the turnaround efforts.