Union representatives from Starbucks engaged in negotiation in the US have unanimously turned down a offer from the coffee giant, which included a minimum 2% yearly salary increase, according to Workers United.
The decision was made by a significant majority of the 490 barista negotiators from more than 550 unionised Starbucks locations across country, with 81% opposing the proposal, as reported by Reuters.
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The offer was deemed inadequate as it failed to address revisions to economic benefits such as healthcare or provide an immediate increase in wages.
The proposal from Starbucks therefore did not meet the necessary criteria to reach an agreement.
Starbucks baristas in the US earn an average hourly wage of more than $19, which, when combined with benefits, equates to around $30 per hour.
Starbucks Workers United expressed dissatisfaction with the company’s latest proposal via a statement on X: “While bargaining delegates from union stores have reached tentative agreements on many key articles, a majority of partners have said Starbucks’ newest offer was simply NOT GOOD ENOUGH.”
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By GlobalDataIn response to the vote, Starbucks issued a statement criticising the union for presenting an incomplete contract proposal for single-store agreements to its delegates, suggesting this approach has hindered progress towards a mutual agreement.
The company stated: “No other retailer offers such a comprehensive package. Starbucks is the industry leader in terms of total pay and benefits which far exceed retail industry norms. At Starbucks, our store labour costs as a percentage of sales are notably higher than others in the industry, because we have consistently invested in pay and benefits over many years. Any agreement we reach needs to reflect the reality that we already provide the best job in retail.”
The company remains hopeful about reaching an acceptable contract through “productive compromise and respectful dialogue,” asserting that a prosperous Starbucks benefits all partners.
Starbucks is also facing allegations from a recent civil lawsuit claiming that some of its coffee beans sourced from Brazil come from farms engaging in slavery-like practices.
The lawsuit, filed in mid-April 2025, references eight individuals who allege they were trafficked and forced to labour on farms that supply what are marketed as “ethically sourced” coffee beans to Starbucks.
Starbucks global coffee and sustainability executive vice-president Michelle Burns stated: “The claims asserted in the complaint about Starbucks are without merit, and we plan to vigorously defend our company. More specifically, the reporting mischaracterises and misunderstands Starbucks coffee supply chain.”
In February 2025, Starbucks set out plans to eliminate 1,100 corporate jobs as part of CEO Brian Niccol’s strategy to streamline the business and improve financial performance.
