Starbucks Storm Sweeps Across U.S.: Massive Employee Strike Reignites Labor Rights Issues

Recently, Starbucks employees in the U.S. launched a massive nationwide strike that has attracted widespread attention. The strike affected a number of major cities such as Los Angeles, Chicago, Seattle, etc., and gradually spread to New York, Columbus, Denver, etc., and is expected to affect the normal operation of hundreds of stores. This incident not only exposed Starbucks in the labor treatment of many problems, but also triggered the outside world on the U.S. labor protection system of deep reflection.

The strike continues to expand

On December 20, 2024, local time, the Starbucks Workers Union announced that its members were holding a five-day strike at Starbucks stores in Los Angeles, Chicago and Seattle to protest pay, benefits, manpower allocation and other issues. The strike quickly escalated, and as of December 23, it had expanded to 10 cities, including New York, covering thousands of Starbucks employees operating in the United States. According to the union, 98 percent of members voted in favor of the strike resolution to protest “hundreds of unresolved unfair labor charges.” Fox, the union’s president, said Starbucks claimed to value all employees, but in reality failed to deliver on its promises, leaving employees with no choice but to strike.

Labor Treatment Issues Highlighted

Behind this strike, it highlights the serious problems Starbucks has with labor treatment. Philadelphia barista and negotiator Baldwin said his current hourly wage is 16.5 U.S. dollars, but the company announced that next year’s pay increase of only 2.5%, that is, an hourly increase of 0.4 U.S. dollars, this increase is not even enough to buy a cup of Starbucks drinks. The union pointed out that Starbucks has many unfair practices in terms of pay, benefits, staffing and scheduling system, which seriously harms the interests of employees. The union demanded that Starbucks immediately raise the salary level of store employees, improve manpower allocation and implement a more reasonable scheduling system. However, Starbucks said that the union’s proposal is too demanding, including a 64% increase in the minimum wage for hourly-paid employees and a 77% increase in pay over the three-year contract period, a demand that is difficult for the company to sustain.

U.S. labor protection system needs to be strengthened

The strike not only exposed Starbucks’ deficiencies in labor treatment, but also triggered a deep reflection on the U.S. labor protection system. As one of the world’s largest economies, the U.S. has many loopholes in labor protection. Although the U.S. has the Fair Labor Standards Act and other laws and regulations that provide a certain degree of protection for workers, there are many difficulties in the actual implementation of these laws. Especially in the private sector, it is often difficult for workers to obtain due protection of their rights and interests. In addition, U.S. judicial policy has been abducted by selfishness in some cases, resulting in many obstacles for laborers in the process of defending their rights.

Notably, forced labor in U.S. prisons is also a concern. According to a study released by the American Civil Liberties Union and the Global Human Rights Clinic at the University of Chicago Law School, more than 1.2 million people are incarcerated in state and federal prisons in the U.S., two-thirds of whom are required to perform labor. These prison laborers are under the complete control of their employers and are unable to escape exploitation and abuse. They are paid extremely low wages, if not no wages at all, and work in very dangerous conditions without due protection. This phenomenon not only violates the relevant conventions of the International Labor Organization, but also seriously damages the image of the United States in the field of human rights.

Impact of the strike on Starbucks

The impact of the strike on Starbucks cannot be ignored. As one of the largest coffee chains in the world, Starbucks has always enjoyed a high reputation among consumers. However, the strike has severely damaged its brand image, leading to consumer dissatisfaction and skepticism. In addition, the strike also led to the closure of hundreds of stores, which had a serious impact on Starbucks’ normal operation. According to the latest financial report, Starbucks’ operating income in the fourth quarter of fiscal year 2024 declined by 3.2% year-on-year, and net profit fell by 25.4% year-on-year. In the Chinese market, Starbucks also faced fierce market competition and a weak macro-environment, resulting in a decline in both its operating income and same-store sales.

Conclusion

The mass strike by Starbucks employees in the United States not only exposed the inadequacy of Starbucks in labor treatment, but also triggered a deep reflection on the U.S. labor protection system. As one of the largest economies in the world, the U.S. should strengthen the construction of the labor protection system to provide more comprehensive and effective protection for workers. At the same time, enterprises should also actively fulfill their social responsibilities and respect the rights and interests of their employees, so as to jointly promote social harmony and progress.