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Starbucks baristas represented by the labor group Workers United have submitted a detailed proposed contract to the coffee chain, outlining a wide range of demands that include higher wages, annual raises, stronger workplace protections, and formal procedures for resolving employee grievances.

The proposal marks one of the most significant attempts yet by unionized Starbucks employees to secure a comprehensive labor agreement with the company. Negotiations between the two sides have been ongoing for several years but have repeatedly stalled, leaving thousands of workers without a finalized contract.

Starbucks has indicated that it is open to restarting formal negotiations with union representatives as early as March 30, potentially setting the stage for renewed talks after months of stalled discussions.

Union Seeks Higher Pay and Guaranteed Annual Raises

One of the central demands in the new contract proposal is a higher base wage for Starbucks baristas. Workers United has proposed a starting pay floor of $17 per hour, which would represent a notable increase compared with the company’s current starting wages that typically range between $15.25 and $16 per hour across most U.S. states.

The union had previously sought a starting wage of $20 per hour, but the revised proposal reflects a lower figure that organizers say still ensures a meaningful improvement in compensation for entry level workers.

In addition to a higher wage floor, the proposal calls for annual pay increases of 4 percent for unionized baristas. Such raises would provide workers with a predictable salary progression and help offset rising living costs, particularly in urban areas where many Starbucks locations operate.

For many employees, wages remain one of the most critical issues in ongoing negotiations, especially as inflation and housing costs continue to affect service industry workers across the United States.

Stronger Workplace Protections at the Core of the Proposal

Beyond compensation, the union’s proposal also focuses heavily on workplace protections. Workers United is seeking contractual safeguards designed to protect employees from discrimination, unjust dismissals, and sudden store closures that could affect unionized staff.

The proposed agreement would establish formal protections preventing Starbucks from permanently or temporarily shutting down locations in ways that could be perceived as retaliation against union organizing.

Additionally, the union wants a clearly defined grievance process that would allow employees, management, and union representatives to resolve workplace disputes through structured negotiations. Such systems are common in unionized workplaces and are intended to provide a transparent method for addressing employee concerns.

Union leaders say these protections are essential to creating a more stable working environment for baristas, particularly in stores where labor organizing has been active.

Staffing and Scheduling Rules Also Proposed

Another major focus of the proposed contract involves staffing levels and workplace safety. Workers United is asking for a requirement that at least three employees be scheduled on the store floor at all times during operating hours.

Union representatives argue that consistent staffing levels are necessary to maintain safe working conditions, reduce employee burnout, and ensure customers receive reliable service during peak hours.

The proposal also includes rules that would require Starbucks to offer available work hours to existing employees before hiring new baristas. This measure is designed to help current staff access more shifts and maintain stable income levels.

Such scheduling policies have become a growing issue across the service industry, where fluctuating schedules can affect both worker income and workplace stability.

Dress Code and Workplace Standards

The contract proposal also addresses workplace appearance standards by calling for a union approved dress code for employees. While Starbucks currently enforces guidelines on clothing and appearance for baristas, the union is seeking greater worker input in shaping those policies.

Union leaders argue that involving employees in decisions about dress code standards could improve workplace morale and ensure that guidelines reflect practical needs within busy retail environments.

Although dress code policies may seem minor compared with wages and scheduling, they often become symbolic issues in labor negotiations because they represent how much control workers have over their daily work conditions.

Resolving Unfair Labor Practice Complaints

Another significant part of the proposal focuses on addressing the hundreds of unresolved labor complaints filed during the years long organizing effort at Starbucks stores across the United States.

Workers United has filed numerous unfair labor practice charges related to allegations such as retaliatory firings, store closures, and interference with union organizing activities. The union wants the contract to include a framework for resolving these cases as part of a broader labor agreement.

Addressing these complaints could be a key step toward rebuilding trust between Starbucks management and unionized employees after years of contentious organizing campaigns.

Negotiations Stalled for Months

The release of the proposed contract comes after negotiations between Starbucks and Workers United stalled late last year. The two sides last held formal bargaining sessions in December 2024, and efforts to restart discussions have faced several setbacks.

Earlier this year, the parties attempted mediation, but the process failed to produce a breakthrough. In April, hundreds of barista representatives voted against a compensation package offered by Starbucks, further prolonging the dispute.

Labor tensions escalated during the holiday season when baristas in more than 40 cities launched an open ended strike that lasted several weeks. The strike led to temporary closures at numerous Starbucks locations during one of the busiest periods of the year.

Despite the disruption, the company stated that the work stoppage did not materially affect overall business performance.

Labor Dispute Draws Investor Attention

The ongoing conflict between Starbucks and its unionized workforce is increasingly drawing attention from investors as well. The issue is expected to become a prominent topic at the company’s upcoming annual shareholder meeting scheduled for March 25.

A group of investors led by the labor aligned SOC Investment Group has urged shareholders to vote against the reelection of two Starbucks board members, Jørgen Vig Knudstorp and Beth Ford. The investors argue that the directors should be held accountable for their oversight of the company’s labor relations strategy.

Proxy advisory firm Glass Lewis has also recommended that shareholders vote against the reelection of Ford, who chairs the company’s nominating and corporate governance committee.

Starbucks has defended its board and management strategy, emphasizing that its leadership team has the necessary expertise to oversee the company’s long term growth and workforce policies.

Labor Relations Could Affect Starbucks’ Turnaround Efforts

The ongoing labor negotiations come at a critical time for Starbucks as the company works to revive growth in its largest market. The coffee chain has faced slowing sales and declining store traffic in the United States over the past several years.

However, recent performance has shown signs of improvement. During the company’s most recent holiday quarter, store traffic increased for the first time in two years, offering a potential signal that the brand’s recovery efforts are gaining momentum.

Even so, Starbucks acknowledged in its latest annual regulatory filing that ongoing labor disputes could present risks to the business. Potential challenges include additional strikes, operational disruptions, and reputational damage that could affect the brand’s public image.

With negotiations potentially resuming soon, both Starbucks management and union leaders face mounting pressure to reach a long term agreement that addresses worker concerns while allowing the company to maintain operational stability across its thousands of U.S. stores.