Over 3,000 workers from more than 150 Starbucks stores in the United States are preparing to go on strike in the coming week. The Starbucks Workers United union announced the strikes in response to allegations that the company had prohibited the display of Pride Month decorations at certain cafes.
Pushing for Fair Labor Contracts
The strikes not only address the Pride decor dispute but also seek to pressure Starbucks into negotiating fair labor contracts for improved pay and benefits. Currently, the company has not reached any collective bargaining agreements at its recently unionized cafes.
Stock Market Impact
Starbucks, which operates approximately 9,000 company-owned locations in the U.S., experienced a stock drop of over 2.5% amid the broader market decline.
Timing and Pride Month Celebrations
The strikes coincide with a significant weekend for Pride Month celebrations in the United States, with Pride Parades scheduled in major cities such as New York, San Francisco, Seattle, and Chicago.
Allegations of Decor Restrictions
According to the union, managers at multiple Starbucks locations have either prevented employees from displaying Pride Month flags and decorations or have removed them.
Starbucks Responds
Starbucks responded on Friday, dismissing the claims as “false information.” The company stated that there had been no policy changes regarding Pride Month decor and reaffirmed its encouragement for store managers to celebrate Pride Month while adhering to safety guidelines.
Backlash Faced by Retail Brands
Several U.S. retail brands have faced criticism from conservatives for featuring LGBTQ+ merchandise, while simultaneously receiving complaints from gay rights groups for insufficient support to the community after giving in to conservative pressure.
Shareholder Concerns
Shareholders are taking notice of companies’ handling of LGBTQ+ equality issues. New York State Comptroller Thomas DiNapoli, managing the state’s public pension funds, sent letters to Starbucks, Target, and over 50 other invested companies, requesting an explanation of their approach to corporate risks related to recent attacks on LGBTQ+ equality and their support for LGBTQ+ employees.
Starbucks’ Response to DiNapoli
Starbucks was the first company to respond to DiNapoli’s letter. In its reply, the company reiterated its inclusive policies and provided a timeline dating back to 1988 when it began offering full health benefits to same-sex domestic partners.
Additional Challenges Faced by Starbucks
Starbucks is also grappling with numerous complaints filed with the National Labor Relations Board, accusing the company of illegal practices such as terminating union supporters and closing stores during labor campaigns. Since late 2021, workers at over 300 U.S. stores have voted to unionize.
Seattle Roastery Leads Nationwide Strike
The Starbucks Workers United union announced that the nationwide strike, called “Strike with Pride,” would commence at the company’s flagship Seattle Roastery.
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