Labor troubles at coffee giant Starbucks (SBUX) have been a problem for some time now, and now, they may be about to get even worse than normal. Starbucks Workers United is set to launch a strike authorization vote this Friday, which may send a comparative handful of Starbucks workers to the picket line. The news did little to hurt Starbucks investors, though, as shares were up fractionally in Thursday afternoon’s trading.
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If this strike authorization vote goes through, reports note, this will be the fourth work stoppage event in the last two years. It is set to run from October 24 through November 2, though the strike will be “open-ended” if the strike vote goes through. Right now, the union is already planning a slate of fully 70 “…practice pickets and rallies” throughout 60 cities. Meanwhile, Starbucks reps noted that nothing “…has…changed” as far as bargaining with the union and setting up contract agreements goes.
Starbucks Workers United representative Michelle Eisen made it clear, saying, “Starbucks knows where we stand. They know our demands: more take-home pay, better hours, resolving legal issues. It’s time to finalize a contract this fall before the all-important holiday season.”
Long Time Coming
Reports note that the union and Starbucks have not been in active negotiations since December 2024. Back in February, they went into mediation, and Starbucks offered up a pay package in April. But the union delegates voted the package down, which has left the whole process in a kind of limbo.
The problem for the union, however, is its lack of reach. Starbucks Workers United represents around 12,000 workers at over 650 stores. Objectively, that would be big…but Starbucks has over 18,000 locations just in North America. This is less than one worker per store. It represents the kind of numbers that Starbucks can easily work around. And when your strike can be ignored with comparative ease, your key weapon as a union is, basically, lost.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 13 Buys, six Holds and one Sell assigned in the past three months, as indicated by the graphic below. After an 11.99% loss in its share price over the past year, the average SBUX price target of $99.83 per share implies 16.49% upside potential.
