Starbucks Is Shutting Down?
Starbucks is really feeling the heat. Some of the coffee giant store have elected to close following unionization efforts.
Starbucks workers have been on the frontlines of unionizing coffee shops and ensuring better pay for baristas. After some exciting union wins earlier this year, Starbucks executives have considered meeting with and collaborating on new benefit initiatives led by employees. Recently though, a store in Ithaca, New York, has decided to shut its doors, and many believe it’s due to complications between union efforts and stubborn executives.
The closure of one of three Starbucks stores in Ithaca comes several weeks after a union vote was held at the New York shop. Soon after, two sides emerged about why the Ithaca shop was prematurely closed. The company released a statement about the shutdown, referring to a problem with the grease trap system. But workers attempting to unionize the store have a slightly different story. Starbucks employees who were terminated from the shop said that executives were unhappy with the unionization efforts, which led to this retaliation.
Workers at the Ithaca location cited other instances of executive hesitancy surrounding unionization attempts. One barista from the closing coffee shop stated that the efforts to shut down the store were due to the store’s “strongest union sentiment.” The Ithaca store was extremely close to finalizing a contract with Starbucks executives, which has gotten ample pushback over the past months. Despite Starbucks stating that it intends to work with its employees on payment and benefit compromises, some of its leadership actions have shown otherwise.
For this Ithaca location, unionization efforts have been ongoing since last year. The first attempt began in October 2021 and quickly grew throughout the December holiday season. Starbucks baristas at the closing location popped around to the other two Ithaca stores to distribute union authorization cards to help them initiate union elections. After that, many baristas encountered an influx of management and corporate employees entering the Ithaca stores to understand the unionizing efforts. Many hourly workers reported that executives would use intimidating tactics to persuade them out of their organizing.
Despite the documented anti-union decrees by Starbucks management, each Ithaca store held a union vote which ultimately passed in the workers’ favor. The upstate New York locations aren’t the only stores initiating union voting, though. Since December 2021, over 300 sites have filed for union elections, trying to advance their pay and benefits after years of inadequate compensation and working conditions. Of those 300, more than half have won their union votes, even with certain Starbucks executives’ disapproval. Workers’ complaints have also been filed throughout the country regarding intimidation tactics from corporate. Starbucks has vehemently denied these claims, even though CEO Howard Schultz has publically stated that he has no intention to engage with Starbucks unions.
Starbucks employees are at the forefront of hourly workers’ organizing for better working conditions. The pandemic galvanized many into recalibrating their working environment and realizing that adequate pay and benefits not offered by employers were unacceptable. With new Starbucks stores unionizing, other baristas and hourly workers around the nation are feeling motivated to organize with their peers. As more shops win their union votes, Starbucks’ executives will hopefully begin to meet their demands to restructure the working environment.
