It’s been a while since we have had an update on Starbucks. In April, the company and union jointly announced that they would resume bargaining on a collective bargaining agreement, aiming to reach a contract by the end of 2024. That process was disrupted mid-year when new CEO Brian Niccol took over the company. Still, in September, he said the coffee chain was committed to bargaining in good faith with the union that represents a small portion of its baristas.
As year-end approaches, Starbucks faces renewed labor tensions as Starbucks Workers United (SBWU) announced that 98% of its members voted to authorize a potential strike. While plans or dates for a strike have yet to be confirmed, the vote signals growing frustrations from unionized employees and highlights ongoing challenges in reaching an agreement on key issues.
A Notable Development: Expanded Parental Leave
Amid these discussions, Starbucks recently announced a significant expansion of its parental leave benefits, a move aimed at supporting employees and enhancing its workplace offerings. Beginning in March 2025, birth parents who work at least 20 hours per week will be eligible for up to 18 weeks of fully paid leave, tripling the current six-week benefit. Non-birth parents will also see their leave increase to 12 weeks, up from three.
CEO Brian Niccol framed the change as part of Starbucks’ broader commitment to being an employer of choice in the retail sector. However, SBWU has taken credit for the benefit expansion, stating that it resulted from union-driven proposals during bargaining.
SBWU also announced that employees at the Sodo Reserve, a marketplace-style store in the company’s Seattle headquarters, voted 21-to-14 to join the union just hours after the strike vote announcement, continuing a recent string of organizing success.
Key Issues Remain
While the expanded parental leave is a step forward, SBWU has raised concerns about other unresolved matters. The union points to hundreds of outstanding unfair labor practice allegations and over $100 million in potential legal liabilities.
Starbucks, for its part, emphasizes the progress made during bargaining. Since April, the company has reached over 30 tentative agreements on various topics, including economic issues. Despite these strides, the union continues to push for broader commitments, with barista and bargaining delegate Silvia Baldwin stating, “It’s time to finalize a foundational framework that includes meaningful investments in baristas and to resolve unfair labor practice charges.”
Strike authorizations are not uncommon in union negotiations. They often serve to demonstrate solidarity and apply pressure. For Starbucks, the prospect of a strike—whether symbolic or widespread—adds urgency to ongoing discussions.
Communicating Achievements: Starbucks’ expanded parental leave is a tangible employee benefit. Ensuring the workforce recognizes these improvements is essential for maintaining morale, improving retention, and demonstrating the company’s commitment to its employees.
Preparing for Targeted Actions: Given SBWU’s history of strategic strikes, management should be ready for potential disruptions, particularly in key markets or during high-traffic periods.
Looking Ahead
Starbucks and SBWU will hold their final bargaining session of the year this week. According to the parties, significant progress has been made, but unresolved issues include wages, benefits, and scheduling. For Starbucks—and other organizations navigating complex labor dynamics—success lies in balancing employee needs with operational priorities in a challenging time for the company.
