Thursday morning following the end of a five-day barista strike coordinated by the Workers United union on December 24, Starbucks (NASDAQ:SBUX) shares ticked up almost 2%. The coffee chain still has major labor issues to contend with, notwithstanding the agreement. Involving over 5,000 employees, the walkout closed more than 300 stores spread over 43 states, including several sites in Los Angeles. Workers objected to what they said were slow contract negotiations while the union demanded better economic terms.
The union said, “these unfair labor practice strikes are an initial show of strength, and we’re just getting started,” pledging to keep going until Starbucks makes “a serious economic offer.” Starbucks responded by emphasizing the union’s plan, which called for a 64% immediate minimum pay raise and a 77% total pay raise over three years. The corporation said the expectations were unsustainable.
Even as Starbucks tries to minimize operational disruptions, the labor action highlights continuous conflicts between the firm and its unionized workers. Although the stock showed improvement after the end of the strike, more negotiations will probably decide the wider effects on Starbucks’ operations and personnel.
This article first appeared on GuruFocus.
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel
