WASHINGTON – U.S. Senators John Hickenlooper, Michael Bennet, and 24 of their Senate colleagues recently sent a letter to Starbucks CEO Brian Niccol pushing the company to end its illegal union-busting efforts and negotiate a fair contract with its employees. The letter follows a vote in which 92% of unionized Starbucks workers authorized a nationwide strike this week. Starbucks Workers United, the union representing these employees, includes more than 300 workers in Colorado and 12,000 workers across the country.
“We are writing to express concern regarding Starbucks’ failure to reach a fair first contract with its baristas,” the senators wrote.
“…We are troubled by reports that since you started your role as CEO in September 2024, the company has failed to put forward a serious economic proposal, backtracking on the previously agreed-upon path forward,” they continued.
“As you well know Starbucks is not a poor company. Last year Starbucks made over $3.6 billion in profit and paid out nearly $5 billion in stock buybacks and dividends. In fact, in the first 3 quarters of the year, Starbucks made $1.7 billion in profit and paid out over $2 billion in dividends. Last year, you made $95 million in compensation for the four months you worked in 2024, roughly 6,666 times more than what your average worker was paid for the entire year.”
Starbucks has been found guilty of more than 500 labor law violations and has been accused of 125 new allegations of union-busting since January of this year.
Last year, Starbucks and its workers made progress toward a fair contract, reaching 33 tentative agreements on key issues such as health and safety and protections against unfair firing and discipline. The negotiations abruptly halted after Niccol took over as CEO in September 2024.
“It is clear that Starbucks has the money to reach a fair agreement with its workers,” the senators concluded. “Starbucks must reverse course from its current posture, resolve its existing labor disputes, and bargain a fair contract in good faith with these employees.”
Starbucks has failed to address the organizer’s demands for improved staffing, fair wages, and an end to union busting. Starbucks has refused to settle the more than 700 union-busting charges against it and is implementing a restructuring plan to close stores and lay off hundreds of workers.
This past September, Hickenlooper and Bennet introduced the Protect America’s Workforce Act, legislation to repeal two union-busting executive orders and restore collective bargaining rights and workplace protections for federal workers. Hickenlooper and Bennet also urged President Donald Trump to rescind his March executive order that ended collective bargaining agreements between public employee unions and dozens of federal agencies and bureaus. At a recent Senate Health, Education, Labor, and Pensions Committee hearing, Hickenlooper emphasized the important link between lower union membership and growing income inequality in the U.S.
The letter is available HERE and below:
Dear Mr. Niccol:
We are writing to express concern regarding Starbucks’ failure to reach a fair first contract with its baristas. Additionally, we have heard of a troubling return to union busting, which has impeded the ability of Starbucks workers—many of whom are our constituents—to exercise their statutory and constitutional right to organize.
In February 2024, Starbucks and Workers United announced a path forward to commit to negotiating a foundational framework for contracts, establishing a fair process for organizing, and resolving outstanding legal issues. We were hopeful that the company would abide by this commitment and bargain in good faith with Starbucks workers who exercised their right to form a union.
We understand that the parties had been making progress towards a fair contract in 2024 and achieved 33 Tentative Agreements to date. However, we are troubled by reports that since you started your role as CEO in September 2024, the company has failed to put forward a serious economic proposal, backtracking on the previously agreed-upon path forward. This prompted Workers United to file an unfair labor practice (ULP) charge alleging Starbucks’ failure to bargain in good faith and undermining the representative status of the union. Further, since December 2024, Workers United has filed over 100 new ULPs, many of which allege retaliation against union baristas for union organizing or partaking in protected union activity.
As you well know Starbucks is not a poor company. Last year Starbucks made over $3.6 billion in profit and paid out nearly $5 billion in stock buybacks and dividends. In fact, in the first 3 quarters of the year, Starbucks made $1.7 billion in profit and paid out over $2 billion in dividends. Last year, you made $95 million in compensation for the four months you worked in 2024, roughly 6,666 times more than what your average worker was paid for the entire year.
Despite that extravagant spending on executives and shareholders, Starbucks refuses to reach an agreement with its own workers even though you are less than one average day’s sales apart from a contract. To make matters worse, Starbucks recently began closing stores across the country and laying off hundreds of workers as part its $1 billion restructuring plan. It is clear that Starbucks has the money to reach a fair agreement with its workers.
Starbucks must reverse course from its current posture, resolve its existing labor disputes, and bargain a fair contract in good faith with these employees.
Thank you for your attention to these important issues. We look forward to your response.
Sincerely,
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