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Starbucks will resume union negotiations with its baristas this week. The company’s CEO, Laxman Narasimhan, discussed what the company and its workers will focus on as they continue negotiating for better overall working conditions, better pay and benefits, and better hours.
CNBC quoted Narasimhan, who said, “Specifically in our U.S. stores, we’re focused on creating a more stable environment for partners through investments in equipment innovation, process improvements, staffing, scheduling and waste reduction, all things our partners value and prioritize creating a more satisfying work environment in our stores while de-risking our business.”
Baristas began to unionize under the Workers United banner in 2021 under Starbucks CEO Kevin Johnson. While Workers United does not represent all Starbucks store workers, if negotiations are successful, its membership could spread.
As a result of our courage and persistence over the last 2 years, SBWU & Starbucks are in talks to build a foundational framework toward contract bargaining and organizing🎉
Leaflets about this giant step forward are now being posted in union-certified stores across the country! pic.twitter.com/zpcB9RD1Jg
— Starbucks Workers United (@SBWorkersUnited) March 4, 2024
The union is fighting for its baristas who face short-staffed stores and the inability to keep up with customer demand for products. Bloomberg reports that in the last quarter, around 8% of Starbucks customers waited between 15 and 30 minutes for their order. In comparison, virtually no one waited that long for Starbucks drinks before the pandemic.
Michelle Eisen, a Workers United delegate and original member of the company’s first organized union in Buffalo, said, “I think this is a new world right now to be able to say that the CEO has stepped up and said, ‘Look, we’ve got some problems, we know we’ve got some problems, we want to work towards fixing those problems.’ And as a worker at a unionized location, with proposals on the table to help solve these issues, that’s exactly what I want to hear.”
The Starbucks Stories website reports, “We are working to optimize store-related processes, investing in our supply chain to ensure products are available in-store for our customers and further digitizing our stores to fine-tune how we operate while delivering an improved customer experience.”
The site reveals that “while staffing and scheduling remain critical focus areas, it is important to note this work is part of a larger system of service, craftsmanship and production improvements in our stores.” Overall, Starbucks aims to create a better integrated operating system. This will ultimately make it “easier for partners to do their jobs and better connect with customers.”
In early May 2024, Starbucks founder Howard Schultz discussed the company’s downturn on LinkedIn. He expressed despair that profitability did not exceed shareholder’s expectations. However, Schultz believes the company will recover.
He wrote, “There are no quick fixes. But the path forward should be what has guided the company over decades of financial success: Inspire your people, exceed the expectations of your customers, and let culture and servant leadership lead the way.”
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