Starbucks, SBUX, Workers United has authorized a strike

Starbucks Workers United announced Tuesday that 98% of unionized baristas voted to authorize a strike as they push for a contract with the coffee chain.

Union bargaining representatives are set to resume negotiations with Starbucks on Tuesday in the final scheduled session of the year, aiming to establish a “foundational framework.” According to the union's press release, both sides have spent hundreds of hours at the bargaining table this year, resulting in dozens of tentative agreements.

However, the union noted that hundreds of unfair labor practice cases remain unresolved, and Starbucks has yet to propose a comprehensive deal that addresses wages and other benefits for baristas.

In response, Starbucks disputed the union’s claims in a statement to CNBC, emphasizing its commitment to reaching an agreement.

“It is disappointing that the union is considering a strike rather than focusing on what have been extremely productive negotiations. Since April, we’ve scheduled and attended more than eight multi-day bargaining sessions, reaching thirty meaningful agreements on dozens of topics Workers United delegates identified as priorities, including many economic issues,” the company said.

The strike authorization signals renewed tension between the two parties after relations began to improve in late February. At that time, both sides expressed optimism, saying mediation had helped establish a “constructive path forward.” Prior to that, Starbucks had spent over two years pushing back against the union surge at its company-owned locations, which drew criticism from consumers and lawmakers. The company’s resistance culminated in former CEO Howard Schultz testifying before Congress.

Starbucks CEO Laxman Narasimhan, who took over leadership in March, committed to negotiating in good faith in a letter to the union shortly after assuming the role.

On Monday, Starbucks announced plans to double paid parental leave starting in March. However, reports indicate baristas will receive a smaller annual pay increase next year compared to previous years, following a sales slowdown at U.S. stores.

Since the first union elections were held in Buffalo three years ago, more than 500 company-owned Starbucks cafes have voted to unionize under Workers United.