By Waylon Cunningham
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Twenty-six U.S. senators and 82 House representatives have written to Starbucks 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 must “bargain a fair contract in good faith with these employees.”
House representatives, led by the House Labor Caucus
and Representative Pramila Jayapal, penned a similar letter sent on Monday. No Republicans signed either letter.
SIDES BLAME EACH OTHER
Talks between Starbucks 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 said in a statement the union represents only 4% of its workforce and that the company already offers “the best job in retail.” Starbucks 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 “has the money to reach a fair agreement,” noting that in 2024 Starbucks spent several billion dollars on dividends and stock buybacks and compensated Niccol $95 million, which largely covered shares he left at Chipotle.
Starbucks 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 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.
(Reporting by Waylon CunninghamEditing by Rod Nickel)
