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Starbucks failed to extend pay hikes to unionized stores, and labor organizers are furious

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Union organizers are demanding that Starbucks rethink its decision this week to exclude baristas at unionized stores from a big pay hike that was scheduled for August 1.

Eagerly anticipated for months, the move raised certain workers’ wages by up to 10%. The coffee giant had warned earlier that the benefits wouldn’t apply at unionized cafes because changes to employment terms and conditions for these locations now require a formal bargaining process.

But at a press conference this afternoon, the union, Workers United, argued that Starbucks is withholding better pay and benefits from unionized stores to freeze the union drive’s growing momentum, part of a pattern of escalation. Starbucks points out that it must now engage in collective bargaining to make most workplace changes in unionized cafés.

However, Workers United argues it knew these raises were coming, which is why on July 15, president Lynne Fox sent interim CEO Howard Schultz a letter, reviewed by Fast Company, that announced the union was “hereby waiv[ing] any objection we might have to Starbucks providing Union-represented employees with any wage or benefit improvements provided to........

© Fast Company

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