Coffee giant Starbucks will finally begin formal contract negotiations with Starbucks Workers United, over two years after the union won its first election.
In a Tuesday statement, the company announced its intentions to formally begin talks with SWU, the union representing hundreds of Starbucks locations.
“I want to let you know that we have reached an important milestone,” Starbucks Chief Partner Officer Sara Kelly said in a statement. “We have agreed with Workers United that we will begin discussions on a foundational framework designed to achieve collective bargaining agreements, including a fair process for organizing and the resolution of some outstanding litigation.”
In further good news for unionized Starbucks employees, the company said it will extend the benefits it announced in May 2022 to all union members. Originally, the benefits were available to only nonunion Starbucks employees, a decision that caused relations between the two parties to fray further.
The benefits provided a $15-an-hour pay floor and gave veteran workers a 5%-7% raise based on years worked.
Tuesday’s announcement follows a letter from Starbucks management in December in which the company committed to begin contract negotiations in 2024. It’s a significant step forward in the contract saga because it directly involves SWU.
“Workers United and Starbucks share a commitment to developing a relationship in the best interest of Starbucks partners,” the union said in a statement. “During mediation discussions last week over brand and [intellectual property] litigation, a constructive path forward emerged on the broader issues of the future of organizing and collective bargaining at Starbucks.”
If a contract is reached this year, it would end a yearslong battle for both parties. SWU has long accused Starbucks of stonewalling contract negotiations and making the issue more difficult by refusing to negotiate a nationwide contract. Starbucks has also had to deal with near-constant legal attacks from SWU and the National Labor Relations Board. If a contract is reached, it would likely mean the company’s legal troubles would decrease significantly.
SWU has long demanded higher pay, better workplace protection and increased benefits.