Starbucks Union Unveils New Contract Proposal as Negotiation Stalemate Persists
In a significant development in the ongoing labor dispute, Starbucks Workers United has presented the coffee giant with a comprehensive new contract proposal, marking the union’s latest push to secure its first collective bargaining agreement with the company. The announcement, made during a call with investors, comes after formal negotiations stalled in late 2024 and follows a high-profile, open-ended strike by baristas during the crucial holiday season. According to
Starbucks union members and their supporters, including baristas who have just walked off the job, effectively closing a local branch, picket in front of the store, Feb. 28, 2025 in New York City.
Andrew Lichtenstein | Corbis News | Getty Images
Starbucks Workers United, the union representing a growing fraction of the company’s U.S. workforce, the proposal aims to address core concerns around wages, staffing, and job security.
Starbucks, for its part, has indicated a willingness to return to the bargaining table but has not yet engaged with the specifics of the union’s new offer. A company spokesperson, Jaci Anderson, told CNBC that Starbucks has proposed resuming in-person talks on March 30 and remaining available throughout April.
A Detailed Look at the Union’s Proposed Terms
The union’s proposal outlines several key areas for a first contract, representing a consolidated ask from baristas across the country. The demands include:
- Stronger job protections for unionized baristas against discrimination, unjust terminations, and potential store closures, whether temporary or permanent.
- A starting wage floor of $17 per hour. This represents a reduction from the union’s previous $20 hourly demand but remains above Starbucks’ current company-wide starting range of $15.25 to $16 per hour in 43 states.
- Scheduled annual wage increases of 4% for covered employees.
- The establishment of a clear, joint process for baristas, management, and union representatives to resolve workplace grievances.
- A union-endorsed dress code policy.
- Enforceable staffing and safety standards, including a mandate for at least three workers on the floor at all times.
- A requirement that stores offer available hours to existing employees before hiring new baristas.
- A framework for resolving the hundreds of outstanding unfair labor practice charges filed by the union against the company.
As of the report, Starbucks had not formally responded to the substantive elements of this new proposal.
The Path to the Current Impasse
The relationship between Starbucks and Workers United has been fraught for over a year. The two parties last held formal negotiations in December 2024. Months later, they met for mediation, but a proposed economic package from the company was overwhelmingly rejected by hundreds of barista delegates in April 2025, effectively halting progress.
This impasse triggered labor action. Over the recent holiday season, baristas in more than 40 cities participated in an open-ended strike that lasted several weeks, leading to dozens of temporary store closures during the company’s peak sales period. While Starbucks stated the work stoppage did not materially affect its overall business, it underscored the depth of frustration within its workforce. Workers United represents approximately 6% of Starbucks’ company-owned locations in the U.S., according to the company’s regulatory filings.
Shareholder Spotlight and Strategic Challenges
The labor conflict is now spilling into the boardroom. Ahead of Starbucks’ annual shareholder meeting on March 25, a group of investors led by the union-affiliated SOC Investment Group is urging shareholders to vote against the reelection of directors Jørgen Vig Knudstorp and Beth Ford. The investors cite the directors’ oversight roles in labor relations. Proxy advisory firm Glass Lewis has also recommended voting against Ford, who chairs the nominating and corporate governance committee.
In response, Starbucks defended its board, with Anderson stating, “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.”
This prolonged battle poses a strategic hurdle for CEO Brian Niccol, who is tasked with revitalizing Starbucks’ sluggish U.S. business. The company recently noted a rare increase in store traffic during its
