Key Points:
- Starbucks shares climbed on Tuesday amid news that striking baristas would return to work on Wednesday.
- The baristas’ union has demanded higher minimum wages and other benefits, which Starbucks management has labeled as "not sustainable."
- A company executive reported that most locations remained operational during the strike.
Stock Performance and Strike Updates
Shares of Starbucks (SBUX) saw a notable rise on Tuesday, driven by reports that baristas participating in a nationwide strike would resume work the following day.
The Starbucks Workers United union had previously announced that baristas at several hundred locations across the U.S. were taking part in the strike, which began last Friday in cities such as Chicago, Los Angeles, and Seattle. The walkout reportedly spread to Starbucks stores "from coast to coast," according to the union’s statements on the social media platform X.
Union Demands and Starbucks' Response
The union has accused Starbucks of failing to negotiate in good faith, citing demands for a "fair contract" that includes higher wages and additional concessions. Starbucks, on the other hand, has claimed that the union withdrew from contract negotiations and made salary demands that it deemed "unsustainable." The company also indicated that the strike had minimal impact on its overall operations, with most stores remaining open.
Conclusion of the Strike
The strike is expected to conclude today, allowing workers to return to their positions. On Tuesday, Starbucks shares closed nearly 3% higher, although the stock remains down approximately 6% for the year.