Strike One for Starbucks

In a first for the coffee giant, Chilean workers strike for higher pay, benefits.

July 19, 2011

SANTIAGO/LOS ANGELES - Starbucks has incurred its first employee strike at a café in Chile, where workers are seeking higher pay and benefits, Reuters reports.

Union workers account for less than one-third of workers at Starbucks cafes in Chile, and the company said its 31 cafés would remain open during the strike, absent its union workforce.

"Our stores in Chile have remained open and they'll continue to be open throughout the strike," said Starbucks spokesperson Jim Olson.


Reuters notes, "Starbucks is seen as having some of the restaurant industry??s best pay and benefits," with the "vast majority of its cafes" ?" 17,000 in more than 50 countries ?" not unionized.

The Chilean union needed 50 percent plus one of its Starbucks employees scheduled to work on July 7 to stay home from work in order for a strike to be certified.

The union claimed 62 workers were absent that day, while 57 showed up. However, Starbucks disagrees with those figures and plans to appeal.

"The numbers we provided to the Labor Bureau were different and showed that the number of partners that actually came to work as scheduled outnumbered those that participated in the strike," said Olson, adding that Starbucks was complying with the Labor Bureau's decision.

Unionized workers have been protesting in front of Starbucks?? Santiago cafes since July 7. They are seeking higher pay, a $100 lunch stipend, enhanced health insurance benefits, and miscellaneous bonuses.

In response, Starbucks maintains its pay and compensation in Chile exceeds that of its peers.

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