TLDR
- Starbucks Workers United launched strikes at stores in 41 cities on November 13, coinciding with the company’s Red Cup Day promotional event
- Over 1,000 workers from approximately 550 unionized stores (4% of total U.S. locations) are participating in what they call the “Red Cup Rebellion”
- The union’s three core demands are better hours, higher take-home pay, and resolution of alleged unfair labor practices
- Starbucks stock rose to $87.20 and appears ready to break above technical resistance levels near $86-$87, despite the labor action
- The strike has no set end date, with workers prepared to escalate if the company fails to deliver a fair contract
Starbucks workers walked off the job on Thursday in dozens of cities across the United States. The timing wasn’t accidental.
The strikes hit on Red Cup Day, one of the coffee chain’s biggest promotional events of the year. Customers who buy holiday beverages receive free reusable red cups. Instead, they found picket lines at some locations.
More than 1,000 workers participated in what Starbucks Workers United called the “Red Cup Rebellion.” The union represents employees at about 550 of the company’s 10,000 U.S. stores.
Workers first presented wage increase proposals in September 2024. Starbucks rejected them three months later. The company then offered what the union describes as “an unserious economic package” that failed to raise wages in the first year.
The union has three main demands. Better scheduling is first on the list. Baristas say they struggle to get 19 hours per week, making it difficult to qualify for benefits that require 240 hours over three months.
Higher take-home pay is another sticking point. Diego Franco, a Chicago barista with six years at the company, earns $17 per hour. A living wage for a single person in Chicago is nearly $24 per hour, according to the Economic Policy Institute.
Company Response
Starbucks maintains employee pay and benefits average more than $30 per hour for hourly workers. The company says nearly 85% of employees receive their preferred hours.
Company spokesperson Jaci Anderson expressed disappointment with the strike decision. “When they’re ready to come back, we’re ready to talk,” she said.
Starbucks pointed out that Workers United represents just 4% of its partners. The company said the union “chose to walk away from the bargaining table.”
Workers United President Lynne Fox pushed back hard on that characterization. “I have never seen an employer act with such reckless disregard for breaking labor laws over and over again,” she said during a November 13 news conference.
The union has filed more than 100 Unfair Labor Practice complaints against Starbucks in the past year. Workers want these resolved as part of any contract agreement.
Starbucks closed 59 unionized stores in September as part of a larger corporate restructuring. The strikes have no set end date. Workers say they’re prepared to make this the longest strike in company history if necessary.
Stock Technical Breakout
While workers protested, the stock told a different story. Shares closed at $87.20 on Thursday, hovering near recent peaks.
The stock previously touched highs of $86.72 on October 2 and $87.22 on October 27. Now it’s testing those levels again.
Technical analysis shows the stock breaking above a bearish descending triangle pattern near $86. This formation typically signals a downtrend continuation. Instead, the stock moved higher.
Investors expecting a breakdown below $86 got caught wrong-footed. This false breakdown often sparks sharp reversals in the opposite direction. Forced position covering adds fuel to the move.
The stock hit lows near $80 in April. Since then, it’s mounted a comeback. The week ending October 17 saw a 6% gain. Last week brought a 9% advance.
Starbucks shares have fallen 4.4% this year. The S&P 500 index gained around 16% over the same period. The stock has work to do to catch up with the broader market.
Most Starbucks stores remained open on Red Cup Day despite the strikes. The company said it had plenty of red cups to distribute and nearby locations could serve customers if any stores closed temporarily.
Negotiations between Starbucks and Workers United began in February 2024. No agreement has been reached after nine months of talks.
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