Starbucks Workers United contract proposal is back at the center of the coffee chain’s labor fight after the union said it delivered a comprehensive draft agreement last month and is still waiting for a response. The update came during a Friday call with investors, as baristas attempt to secure their first labor contract with Starbucks.
Inside the Union’s Proposal
Workers United said the package seeks workplace protections and clearer rules for how stores are managed and staffed. The proposal asks for protections for union baristas against discrimination, unjust firings, and temporary or permanent store closures.
On pay, the union is asking for a $17 per hour starting wage floor. That is below its prior $20 proposal, but above Starbucks’ current starting wage of $15.25 to $16 per hour in 43 states. The draft also calls for 4% annual raises.
Beyond wages, the union proposal includes a formal process for resolving grievances involving baristas, management, and union representatives. It also calls for a union-endorsed dress code and requires at least three workers on the floor at all times, paired with enforceable staffing and safety protections.
The proposal would also require Starbucks to offer available hours to existing employees before hiring new baristas, and it seeks resolution of hundreds of outstanding unfair labor practice charges. Workers United said Starbucks has not yet responded to the substance of the proposal.
Starbucks Says It Wants to Resume Bargaining
Starbucks told CNBC it wants to restart talks with Workers United as soon as this month. A company spokesperson said Starbucks has proposed resuming in-person bargaining on March 30 and remaining available for continued negotiations throughout April.
The union represents about 6% of Starbucks’ company-owned U.S. locations, according to regulatory filings, but the dispute has drawn national attention and repeated operational disruptions.
Why the Labor Fight Matters Now
The latest exchange follows a prolonged stalemate. Starbucks and the union last held formal negotiations in December 2024. Several months later, the two sides met for mediation, but hundreds of barista delegates voted down the economic package the company proposed in April.
Over the holiday season, baristas in more than 40 cities held an open-ended strike that lasted several weeks. The work stoppage led to dozens of temporary store closures during one of Starbucks’ busiest periods, though the company said the disruption did not materially affect its business.
Labor relations are also expected to surface at Starbucks’ annual shareholder meeting on March 25. A group of investors led by union-affiliated SOC Investment Group is urging shareholders to vote against the reelection of directors Jørgen Vig Knudstorp and Beth Ford, citing oversight tied to labor relations. Proxy advisory firm Glass Lewis has recommended voting against Ford’s reelection.
Starbucks has defended its board’s oversight, saying directors have the skills and experience needed to manage strategy and human capital. The conflict remains a key risk as Starbucks tries to revive its U.S. business, even after reporting that store traffic rose in its holiday quarter for the first time in two years. In its latest annual filing, the company also warned of potential impacts from further work stoppages and reputational harm.