.katerogers joins SquawkCNBC to report on a group of Starbucks employees looking to unionize following a recent win in December.
baristas are pushing to unionize their cafes, flexing their collective power against the coffee giant in a fight that could change the broader restaurant industry and its workforce.late last year, two Starbucks company-owned stores have formally organized after a December vote and hearing before the National Labor Relations Board.
Starbucks spokesperson Reggie Borges said it is inaccurate to say the company was caught off guard and not prepared. "This shows a lack of understanding of how our leadership engages with our partners," he said. This includes regularly meeting with workers and holding listening sessions. Leo Hernandez is a shift supervisor at Starbucks in Tallahassee, Florida, and supports the store unionizing.Like many young people newly rallying around unionizing, Hernandez cited the idea of having a direct line into management and a sense of community with fellow union member partners for the desire to organize. The 25-year-old would also like to have one job, instead of working multiple shifts serving, babysitting and doing grocery delivery to make ends meet.
Picket signs are pictured at a rally in support of workers of two Seattle Starbucks locations that announced plans to unionize, during an evening rally at Cal Anderson Park in Seattle, on Jan. 25, 2022.Restaurant operators, on the other hand, are less convinced about the efficacy of organized labor — although not all of them are against the idea. A Datassential survey, which surveyed 399 operators from Dec. 23 to Jan.
In a December note to clients on the potential impact of unionization, Levy estimated that if 10% of Starbucks' U.S. company-owned cafes get a raise of $1.50 per hour, the company's net income could see a hit of roughly 3%. But that won't happen overnight.
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