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Starbucks (SBUX-1.20%) and the labor union representing roughly 10,000 employees have agreed to bring in a mediator to help move forward with ongoing contract negotiations.
The decision follows months of bargaining that had previously paused in December, after union workers argued the company had yet to present a comprehensive offer.
In a joint statement, both Starbucks and the union expressed their commitment to working with a mediator to address the “complex issues” at hand and reach fair agreements for both sides.
“Bringing in a professional mediator is a positive step toward securing fair union contracts,” said Michelle Eisen, a 14-year barista and bargaining delegate. “We’re optimistic that Starbucks will finally move off their fixed position on wages and benefits as we continue these negotiations.”
Union workers have been vocal throughout the process, which began in April 2024, including during a high-profile strike last holiday season. On Christmas Eve, baristas walked off the job to demand better wages, benefits, and working conditions. The strike helped build momentum for the union’s efforts, as Starbucks employees continue to push for a fair deal.
In addition to ongoing contract talks, Starbucks is making changes to streamline operations. The company plans to lay off some employees in the next two months, though it remains unclear whether these layoffs will affect only corporate roles or include frontline workers.
Starbucks CEO Brian Niccol also announced recently that the company’s “open-door” policy, which previously allowed anyone to enter stores, would now limit service to paying customers only. This policy shift includes ramping up security at select locations and even closing stores where security measures are not proving effective.
As part of his “Back to Starbucks” strategy, Niccol has made other moves to reshape the company. Recently, Starbucks hired two former Taco Bell executives to help lead changes in store operations and customer service. The company is also cutting its menu by 30% and removing the up charge for non-dairy milks, which have grown in popularity among customers.
With a mediator now in the mix, both sides aim to resolve their differences while finding common ground. Similarly to Starbucks, workers at Costco (COST+0.11%) and Amazon (AMZN+1.17%) have pushed for better pay and benefits, with the latter striking. At Costco, a strike is looming, despite the retailer’s wage boost offer.