Starbucks, Workers United union agree to start collective bargaining, contract discussions

Starbucks announced Tuesday that it will begin discussing potential collective bargaining agreements with the labor union representing nearly 10,000 employees from around 400 stores.

The coffeehouse chain's decision comes nearly three years after Workers United, an American and Canadian labor union, initially organized baristas at a Starbucks in Buffalo, New York.

"Starbucks and Workers United have a shared commitment to establishing a positive relationship in the interests of Starbucks partners," Starbucks said Tuesday in a statement. "During mediation discussions last week for the ongoing brand and IP litigation, it became clear that there was a constructive path forward on the broader issue of the future of organizing and collective bargaining at Starbucks."

In addition to opening up discussions, "as a sign of good faith," Starbucks agreed to allow employees represented by Workers United to receive credit card tips from customers and other benefits, which the company announced in May 2022, according to Starbucks' statement.

"While there is plenty of work ahead, coming together to develop this framework is a significant step forward and a clear demonstration of a shared commitment to working collaboratively and with mutual respect," Workers United said in a statement.

Starbucks, Workers United relationship taking turn for the better

Starbucks and the union's relationship began going in the right direction in December 2023 when the company sent a letter to Workers United as an "attempt to propose a path forward that would allow us to resume productive contract negotiations."

"We collectively agree, the current impasse should not be acceptable to either of us," Starbucks said in the letter. "It has not helped Starbucks, Workers United or, most importantly, our partners. In this spirit, we are asking for your support and agreement to restart bargaining."

Before sending the letter in December, both sides hadn't spoken in seven months, the Associated Press reported.

Starbucks workers strike:Union plans walkouts on Red Cup Day

Pending lawsuit between Starbucks, Workers United

Despite efforts to improve the relationship, both sides still have "outstanding litigation," which Starbucks said Tuesday it hopes to resolve with the labor union.

The company sued Workers United in October 2023 over pro-Palestinian social media posts shared by the union's account, which angered hundreds of Starbucks customers, put other employees' safety at risk and blemished the chain's reputation, according to court records. Starbucks filed the suit in the Southern District of Iowa.

The company also sued over Workers United's "unauthorized use of the famous Starbucks name and logos that copy the famous Starbucks logos," court records show. The company accused the union of using "copycat logos" to promote fundraising, sell merchandise and falsely promote political and social topics on behalf of Starbucks.

Starbucks requested a jury trial and permanent injunctive relief prohibiting the union from using logos similar to theirs, court documents show.

Workers United countersued against Starbucks in a Pennsylvania federal court and requested that the union be able to use Starbucks' name and similar logos, according to court records. Workers United also accuses Starbucks of defaming the union by associating them with terrorism.

Starbucks announced pay raise, Workers United planned 'Red Cup Rebellion'

After filing the suit, Starbucks announced in November 2023 that it would increase hourly wages and benefits for most U.S. workers. The pay raise came after the company had a fiscal year with record sales, according to a statement by Starbucks.

During the same month, Workers United planned a strike that led to thousands of Starbucks employees at hundreds of locations walking out during Red Cup Day. The union-coined "Red Cup Rebellion" stemmed from claims that Starbucks was "illegally refusing to bargain with baristas over staffing, scheduling and other issues," Workers United said in a news release.

"Promotion days like Red Cup Day, half-off ThursYays and Buy One Get One Free offers cause a flood of customers to stores without any additional staffing to cover the influx of orders," the union said in the release.

Contributing: Gabe Hauari, Emily DeLetter