After more than a year at a standstill, Starbucks’ union contract talks are percolating once more.
Starbucks Workers United, the coffee giant’s union, has lowered its proposed starting wage to $17 an hour, down from the $20 minimum it previously demanded. The company has also proposed that in-person bargaining resume on March 30, in what would be the first contract negotiation session since talks stalled in December 2024.
The union’s revised economic proposal, which was provided to Starbucks management 30 days ago, was made public by the union just before SBWU baristas on Friday joined a call with a group of shareholders advocating for workers’ rights, urging management to finalize a contract.
The move marks one of the clearest signs yet that the union is willing to shift its position to break the impasse. Starbucks management has declined to comment on its counter-proposals.
“Baristas recently met, deliberated, and found consensus around fair and reasonable measures to support baristas,” Jasmine Leli, a three-year Starbucks barista and bargaining delegate, said in a statement. She added that workers are “in conversation with the company about the road back to the bargaining table,” and that those discussions are ongoing.
Starbucks management has consistently pushed back on the union’s characterization of events, saying it respects workers’ right to organize and wants to reach a contract, and disputing allegations of widespread union busting.
“At Starbucks, we are committed to all our partners, and where they have chosen union representation, we have been engaging in good faith bargaining,” Jaci Anderson, a spokesperson for Starbucks, told Business Insider, adding that Starbucks was “disappointed” when SBWU “walked away from negotiations” in December 2024.
“Progress occurs in collective bargaining when both sides get into the same room,” Anderson said.
Starbucks management will remain available for “continued negotiations throughout April,” Anderson added.
As Business Insider previously reported, the company has said that it already offers industry-leading pay and benefits, and has said it’s prepared to move quickly toward a “reasonable” and “fair” agreement.
Negotiations have dragged on for months, with both sides accusing the other of failing to bargain in good faith. The stalemate has increasingly drawn scrutiny from politicians, including now-New York Mayor Zohran Mamdani and Sen. Bernie Sanders, as well as investors concerned about reputational and operational risks.
By trimming its wage-floor demand by nearly $3, the union is hoping to signal flexibility and put pressure on executives to match that move as scrutiny from shareholders intensifies.
Under the updated framework, unionized baristas would push for a $17 an hour starting wage, 4% annual raises — down from 5% — and a slate of workplace protections, including “just cause” standards for discipline, antidiscrimination language, enforceable health and safety measures, and guarantees of at least three workers on the floor at all times.
Starting pay in many states ranges from $15.25 to $16 an hour. The union says that raising the floor would lift wages for the lowest-paid workers without creating wage compression at organized stores.
SBWU, which first unionized in Buffalo in 2021, represents about 650 stores, or roughly 4% of Starbucks’ in-store staff in the US.
The union’s broader demands also include offering existing employees additional hours before hiring new staff, formal grievance procedures, protections during store closures, and resolution of outstanding unfair labor practice charges — including alleged backpay tied to firings and withheld raises.
The union’s demand lands at a delicate moment for Starbucks.
As Business Insider previously reported, an investor group has been preparing for a potential board fight, centered in part on the company’s labor relations, as the company continues to navigate its turnaround effort.
Anderson told Business Insider the Starbucks board “has the necessary skills and experience to effectively oversee our strategy, including human capital management, which is vital to our ability to drive growth and deliver for our customers.”
Tensions have also flared on the shop floor: union baristas in November launched their fourth strike since 2023 amid mounting frustration, drawing fresh investor attention to the protracted negotiations.
Most unionized baristas are now back to work, but “work stoppages continue at stores on a rotating basis,” a spokesperson for the union said.
Starbucks executives, including CEO Brian Niccol, have publicly said they want to reach a deal. Union leaders said the path forward is clear.
“It’s time to get a fair contract done so we can all move forward,” Leli said in the statement. “We believe that’s not only possible, but within reach as long as executives are committed to good-faith bargaining.”
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