A planned five-day walkout amidst the busy holiday season by the employees of Starbucks reportedly spread to more than 300 stores across 45 states in the US. The walkout was expected to see participation of over 5000 employees who were demanding that the hourly minimum wage be hiked immediately. They were seeking a 64 per cent hike and a more than 74 per cent increment over a three-year contract.
The company reportedly found these demands to be far from sustainable.
The strike had begun on 20 December, under the aegis of Starbucks Workers United, a union that represents over 10,000 baristas. Disruptions began in Los Angeles, Chicago and Seattle, and soon spread to outlets in Boston, Dallas and Portland, Ore, New York, Denver and Pittsburgh. About 60 stores were closed well before Christmas.
The coffee chain maintained that not more than 170 Starbucks outlets had remained closed, and that 98 per cent of its more than 10,000 stores had been functioning as usual, with almost 200,000 employees continuing to work.
Interestingly, Starbucks had been witnessing positive changes ever since Brian Niccol was appointed CEO about five months ago. Niccol entered the company just when it had been facing challenges posed by low profits, dipping footfall and unionisation activities.
Just about ten days ago, it was announced that Starbucks employees will enjoy double the paid parental leave benefits they were enjoying till now. Some employees may see the paid parental leave increase by three times.
Birth mothers can now enjoy 18 weeks of paid leave compared to the earlier six weeks. Parents who adopt a baby or bring home a child through surrogacy, or opt for long-term foster care, will be able to enjoy up to 12 weeks of paid leave at 100 per cent of their average pay.
