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Starbucks and Union Agree to Mediation: A Step Towards Resolution

Wesley ParkThursday, Jan 30, 2025 6:50 pm ET
1min read


In a significant development, Starbucks and its union representing over 10,000 baristas have agreed to bring in a mediator to help resume stalled contract negotiations and reach a deal. This move, announced in a joint statement on February 27, 2024, signals a commitment from both parties to work together and navigate complex issues to achieve fair contracts.

The agreement to involve a mediator comes after nearly two and a half years of negotiations between Starbucks and Workers United, with talks having been halted in December 2023. The union had gone on a five-day strike just ahead of Christmas, closing Starbucks stores in multiple cities, including Los Angeles, Chicago, and Seattle. The strike was a result of the company's failure to bring a comprehensive package to the table, according to the union.

The joint statement released on Thursday, February 27, 2024, highlights the progress made by both parties in the last nine months of bargaining and their commitment to continuing to work together with the assistance of a mediator. Starbucks had previously said it scheduled and attended more than eight bargaining sessions with union delegates and reached 30 agreements.



The specific issues expected to be addressed during the mediation process include contract negotiations, back pay and credit card tipping, litigation related to intellectual property rights and trademark issues, a fair process for organizing, and the resolution of outstanding litigations. To satisfy both parties, Starbucks and Workers United could work together to find a middle ground on the terms of the contract, ensure the prompt and fair implementation of back pay and credit card tipping, resolve litigations through a mutually agreeable settlement, and agree to a fair process for organizing.

A successful resolution of these negotiations could have a significant impact on the broader labor landscape in the retail and food service industries. It could encourage more workers to unionize, set a precedent for negotiations between employers and unions, influence public perception of unions and collective bargaining, lead to improved wages and benefits for workers, and set legal precedents for future disputes between employers and unions.

In conclusion, the agreement between Starbucks and Workers United to bring in a mediator is a positive step towards resolving the ongoing contract negotiations. By working collaboratively and finding mutually agreeable solutions to the issues at hand, both parties can potentially reach a positive and respectful path forward that benefits both Starbucks and its workers, as well as the broader labor landscape in the retail and food service industries.
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