Starbucks baristas plan to strike in dozens of U.S. cities on Thursday, coinciding with the company’s annual holiday promotion known as "Red Cup Day." More than 1,000 workers from about 65 stores across states including California, Texas, and Pennsylvania will participate in the walkout, according to Starbucks Workers United (SWU), the union representing the employees.

The union claims that Starbucks has not made new proposals regarding critical issues such as staffing and pay since the labor group rejected a company offer in April. Workers are also seeking to address numerous allegations of illegal labor practices, including claims of retaliation against union members.

Amos Hall, a barista from Pittsburgh, stated, "We’re turning the Red Cup Season into the Red Cup Rebellion. Starbucks’ refusal to settle a fair union contract and end union busting is forcing us to take drastic action."

In response, Starbucks spokesperson Jaci Anderson minimized the expected impact of the strike and criticized the union for not engaging in negotiations. "We are disappointed that Workers United, who only represents around 4% of our partners, has voted to authorize a strike instead of returning to the bargaining table. When they’re ready to come back, we’re ready to talk," Anderson said. She added that any agreement must reflect the reality that Starbucks already offers competitive pay and benefits, averaging over $30 an hour for hourly partners.

Anderson also contested the union's claims about the negotiation impasse, asserting that the union presented an incomplete proposal during the April vote. Starbucks Workers United claims to represent over 12,000 unionized baristas at more than 600 locations, while Starbucks estimates the union's membership at 9,500 across about 550 stores.

In February 2024, both parties announced plans to develop a "foundational framework" for a collective bargaining agreement, with negotiations commencing in April. However, the company has faced challenges, including stagnant U.S. same-store sales, which recently reported flat growth for the three months ending in September, breaking a six-quarter decline.

Starbucks CEO Brian Niccol expressed optimism about the company's performance, stating, "The plan is working. We have more work to do, we're building momentum."

Despite these developments, the company and the union have yet to finalize a contract. According to a Bloomberg Law analysis, the average time for a new union to sign its first contract is 409 days. Starbucks and the union have been negotiating for approximately 625 days since their mutual commitment to reach an agreement.

Kate Bronfenbrenner, a labor relations professor at Cornell University, noted that the upcoming strike aims to pressure Starbucks and revive negotiations. "Starbucks workers are striking and engaging customer support to get Starbucks back to the table. They may also need to again mount a large campaign with investors and other stakeholders to convince Starbucks that reaching a first contract is in the company’s best interest," Bronfenbrenner said.