24 December 2024

Investing.com — The Starbucks (NASDAQ:) union representing more than 10,000 workers said it will go on strike in Los Angeles, Chicago and Seattle starting Friday, with the strike scheduled to last at least until Christmas.

The strikes will begin starting Friday morning and “escalate every day until Christmas Eve,” the United Workers said in a social media post, citing claims of unfair labor practices. The union seeks to create an institutional framework to improve working conditions and wages.

The move comes after union members voted to allow a strike earlier this week, amid little progress in negotiations with Starbucks management over workers' demands.

More than 500 Starbucks outlets have unionized over the past three years.

This week's strike heralds more headwinds for Starbucks, which has been struggling with weak demand and rising expenses for the past two years.

The company appointed turnaround man Brain Niccol as its new CEO earlier this year. Nicol, who is credited with helping revitalize the fast food chain Chipotle Mexican Grill Company (NYSE:), continued negotiations with unions.

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