US lawmakers urge Starbucks CEO to restart union talks

Twenty-six US senators and 82 House representatives have written to Starbucks chief executive officer Brian Niccol, urging the company to resume talks with its workers union, the lawmakers said on Monday (Nov 10).

“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 Labour Caucus and Representative, 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.

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Starbucks said that the union represents only 4 per cent of its workforce, and that the company already offers “the best job in retail”.

The company 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 labour practices, such as retaliation against unionising baristas, according to the letters.

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The letters also said that Starbucks “has the money to reach a fair agreement”, noting that in 2024, Starbucks spent several billion dollars on dividends and stock buybacks. The company also compensated Niccol US$95 million, which largely covered shares he left at Chipotle.

Starbucks said its stock actions benefitted workers who own shares through a company programme, as well as institutional investors and pension funds.

The union said last week that workers are prepared to strike if a contract is not finalised by Nov 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 US store operations in a bid to win back customers. The coffee company suffered six quarters of sales declines before Oct 29, when the company reported 1 per cent global sales growth.

In September, Starbucks shut more than 600 stores, including its flagship unionised outlet in Seattle, and trimmed its corporate workforce as part of the turnaround efforts. REUTERS