Home » Business News • US Employment News » Starbucks Agrees Pay Rise For Unionized Baristas

Starbucks Agrees Pay Rise For Unionized Baristas

By Nithya Bose in Business News, posted February 28, 2024

Starbucks has announced wage increases for employees at its unionized stores, matching their pay to raises given to non-union staff in May 2022.

This comes as Starbucks and Workers United, the union representing Starbucks baristas, show signs of improving their relationship by engaging in productive mediation discussions.

Workers United has successfully organized over 300 Starbucks locations.

The decision to increase wages was announced following last week's mediation talks.

The discussions also addressed a dispute over the union's use of Starbucks' branding in a social media post supporting Palestinians.

Starbucks and Workers United agreed to start talks on a “foundational framework” for reaching collective bargaining agreements at the unionized stores.

Looking to boost your online brand? Create your FREE business profile at WhatBiz? Here

This marks a major step towards reconciliation since the first store unionized in December 2021.

Under the new wage plan, employees with two to five years of service will see a 5 percent raise or a pay rate five percent higher than the market's starting rate, depending on which is greater.

Those over five years of service will receive a seven percent increase or a wage 10 percent above the market start rate, whichever is higher.

The wage adjustments were initially implemented under the tenure of former CEO Howard Schultz.

Known for his firm stance against unionization, Mr Schultz has sparked criticism from the union, politicians, and customers.

Follow us on X, LinkedIn, and Facebook