Zinger Key Points
- Starbucks 100 Cafe strike comes a day before the new CEO Laxman Narasimhan participates in his first shareholder's meeting.
- Workers are demanding that Starbucks stop its antiunion activities and give them a 'real seat' at the table.
- The pace of unionization at Starbucks has slowed down recently.
- Get real-time earnings alerts before the market moves and access expert analysis that uncovers hidden opportunities in the post-earnings chaos.
Unionized workers of Starbucks Corporation SBUX are welcoming their new CEO Laxman Narasimhan with a 100-cafe strike.
What Happened: The unionized workers are demanding that the coffee chain stop its anti-union activities, reported Bloomberg.
The stoppage of work will reportedly affect 40 cities in the United States and come just a day before Narasimhan is set to participate in his first annual shareholder's meeting on Thursday.
Striking workers from Oregon and Washington are reportedly planning a midday protest outside the Starbucks headquarters in Seattle.
Starbucks Workers United said on Twitter on Wednesday that while the coffee chain “keeps a metaphorical ‘empty chair’ for us in the boardroom, we’re demanding a real seat at the table.”
BREAKING: Workers at over 100+
— Starbucks Workers United (@SBWorkersUnited) March 22, 2023
Starbucks stores across the country are striking to demand an end to Starbucks' illegal union-busting campaign. While the company keeps a metaphorical 'empty chair' for us in the boardroom, we're demanding a real seat at the table! #StarbucksStrike
See Also: How To Buy Starbucks (SBUX) Shares
Why It Matters: Narasimhan took the reins of Starbucks a week ahead of schedule on Monday. He replaced the three-time CEO and founder Howard Schultz.
Schultz is due to testify in front of Sen. Bernie Sanders (I-Vt.)-led Senate Health, Education, Labor, and Pensions Committee.
It was reported last year that Starbucks illegally withheld wages and benefits from union workers. At the time the company issued a denial saying that it had been following the guidelines set by the National Labor Relations Board (NLRB).
The union has prevailed in elections in nearly 290 of Starbucks’ almost 9000 corporate-owned U.S. cafes, according to Bloomberg.
Even so, the unionization process at Starbucks has slowed down as the company has preferred to dish out increased pay and benefits to non-unionized cafes.
Price Action: On Wednesday, Starbucks shares closed 1.4% lower at $99.12 and rose 0.1% in the after-hours trading, according to Benzinga Pro data.
Read Next: Starbucks Sells 2,000 NFTs In Just 20 Minutes — But No Free Coffee Included
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