Starbucks employees at limited number of stores threaten to strike over the next week
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Starbucks Corporation (NASDAQ:SBUX) workers at about 150 stores have threatened to strike over the company's policy of not being allowed to wear or display Pride month decor. The Workers United union has also organized the strike due to claims that Starbucks (SBUX) is acting slow to negotiate labor contracts.
For its part, Starbucks (SBUX) said it had not revised its guidelines for store decorations, which include hanging flags and decorations. "There has been no change to any policy on this matter and we continue to encourage our store leaders to celebrate with their communities including for U.S. Pride month in June," stated a company spokesperson.
The strikes are expected to take place over the next week, but will cover only 2% of Starbucks (SBUX) stores in the U.S.
The unionization efforts at Starbucks (SBUX) have been playing out slowly and have not been a major financial consideration so far. While more than 300 stores in the U.S. have voted to unionize, none of the employee groups from those stores have been able to negotiate a bargaining contract with the Seattle-based coffee chain giant. Earlier in the year, BTIG analyst Peter Saleh predicted negotiations could continue for the balance of 2023, with little to no resolution. A survey by BTIG also indicated that consumers are unlikely to abandon Starbucks (SBUX) - even if the unionization efforts fail.
Shares of Starbucks (SBUX) fell 0.82% in the premarket session.
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