Starbucks Union Rejects Company's Offer Of 2% Annual Pay Raise

Union delegates representing Starbucks baristas voted to reject the company's latest contract proposal that guaranteed annual pay raises of at least 2%, Workers United said, as reported by Savyata Mishra and Waylon Cunningham for Reuters.

Starbucks said the union had presented an incomplete framework for single-store contracts to delegates, leading to delays. I Photo: SBWorkers United Facebook

Out of 490 baristas from over 550 unionized stores, 81% rejected the offer, which included no immediate wage increases or improvements to economic benefits like healthcare. "Starbucks' current offer is insufficient to finalize a deal," Workers United said.

Starbucks said the union had presented an incomplete framework for single-store contracts to delegates, leading to delays.

The company stated that it currently pays baristas more than $19 an hour on average, or about $30 an hour including benefits, and had proposed minimum annual raises of 2%.

Negotiations had been advancing after both sides agreed in February to mediation and had reached tentative deals on issues like health and safety, but the union called the latest economic offer "not good enough."