"Invest in Workers Too" Starbucks Employees Angry at CEO Who Joined with 100 Billion Won Investment

Over 5,000 Workers Strike at 300+ US Starbucks Stores
Demanding 77% Wage Increase Targeting New CEO
CEO from Chipotle Receives Up to $100 Million

As the year-end peak season approaches, Starbucks in the United States is experiencing the largest strike in its history, which is expected to cause significant sales damage. According to Bloomberg News on the 24th (local time), the U.S. Starbucks union, 'Starbucks Workers United,' announced online that "more than 5,000 employees from over 300 Starbucks stores across Michigan have walked out demanding a fair contract," adding, "We are fighting for a living wage, fair work schedules, and welfare benefits. We cannot accept the company's final offer without an immediate wage increase."

An employee is holding a strike-related placard in front of a Starbucks in Brooklyn, New York, USA. Photo by Reuters and Yonhap News.

The U.S. Starbucks union was first organized in December 2021. They have been in conflict with management over wage increases and other demands, and the strike that began on the 20th in several areas including Chicago, Los Angeles (LA), and Seattle has continued for four days as of this announcement. They pointed out that CEO Brian Niccol's annual salary reaches $100 million, stating, "The company should invest not only in the CEO but also in the workers." They are demanding a guaranteed base wage of at least $20 per hour (approximately 29,000 KRW) for all baristas and an immediate 64% increase in the minimum wage for part-time workers, totaling a 77% increase over a three-year contract period.

Niccol, who took office in September, left Chipotle to join Starbucks and received compensation worth $85 million (approximately 115 billion KRW), including $10 million (about 1.35 billion KRW) in cash and $75 million (about 101 billion KRW) in stock. In addition, he receives an annual base salary of $1.6 million (about 220 million KRW) as CEO and can earn up to $8.8 million (about 1.19 billion KRW) more in cash bonuses if performance targets are met. Starting from the 2025 fiscal year, he is also eligible to receive stock bonuses of up to $23 million (about 3.12 billion KRW) annually based on performance.

However, the union stated that they are "ready to return to the negotiating table," leaving the possibility of negotiations open. Starbucks emphasized in a statement that "a very small number of stores have temporarily closed, currently about 60 stores," and that approximately 10,000 stores across the U.S. continue to operate as usual.

This strike is expected to significantly impact Starbucks' sales during the Christmas and year-end peak season. Bloomberg News pointed out, "It is common for customers to finish their Christmas shopping and enjoy expensive latte-type drinks at Starbucks, and many consumers purchase Starbucks gift cards in large quantities as year-end gifts."