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Starbucks CEO Brian Niccol tells FOX Business why the company improved its parental leave benefit.
Starbucks is responding as some of its union workers picketed Friday after Starbucks Workers United (SBWU) baristas voted to authorize a strike earlier this week.
According to the coffee chain, the union is seeking wage increases that “are not sustainable.”
Starbucks says the wage increases requested by its unionized workers are “not sustainable.” (Joe Raedle/Getty Images/Getty Images)
| Heart | Security | Last | Change | Change % |
|---|---|---|---|---|
| SEX | STARBUCKS CORP. | 101.51 | -0.95 |
-0.93% |
“Workers United’s proposals call for an immediate increase in the minimum wage for hourly partners by 64% and by 77% over the life of a three-year contract,” Starbucks said in a statement. “This is not sustainable.”
According to Starbucks, the average wage of its workers is currently over $18 per hour and, along with benefits, is worth more than $30 per hour.
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“We are willing to continue negotiations to reach agreements,” the company added. “We need to get the union back to the table.”
SBWU members voted to authorize the strike on Tuesday ahead of a meeting between the union and the company for future negotiations.
Unionized Starbucks locations in Los Angeles, Seattle and Chicago launched their picket lines on Friday, and the strike will intensify and expand to more stores across the country through Christmas Eve.
Thousands of Starbucks workers in more than 525 stores belong to the SBWU.
A Starbucks spokesperson said in a statement Friday: “There has been no significant impact to our store operations. We are aware of an outage in a small handful of stores, but the overwhelming majority of our U.S. stores remain. open and serving customers normally.
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The union and Starbucks began working on a “fundamental framework” in April, and the sides last met in September. That meeting took place shortly after Brian Nicol he became the CEO of the coffee chain.
Charlotte, North Carolina, Starbucks Coffee, baristas behind the counter making drinks. (Jeffrey Greenberg/Universal Images Group via Getty Images/Getty Images)
Niccol announced Monday that the company will “more than double” the paid parental leave it offers to U.S. store employees who work at least an average of 20 hours per week. The expanded benefit, which will include up to 18 weeks for biological parents and up to 12 weeks for non-biological parents, will take effect in the spring.
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The company’s workforce numbered about 361,000 at the end of September, including 211,000 in the U.S. in Starbucks-operated stores, corporate support and other areas.
FOX Business’ Aislinn Murphy and Reuters contributed to this report.
