Starbucks has recently revealed plans to introduce higher pay and new benefits for its employees, but with a catch. These perks will only be extended to non-union baristas, sparking further tension in an already bitter dispute between the coffee giant and union organizers across the United States. The National Labor Relations Board (NLRB) has previously ruled against similar actions by Starbucks, deeming them in violation of federal labor law.

The conflict between Starbucks and the union drive began nearly two years ago when the first location voted to unionize. Since then, Starbucks has aggressively opposed the union efforts, with the NLRB claiming the company engaged in illegal practices. Starbucks has vehemently denied these allegations and has appealed the NLRB's decisions.

As of mid-October, approximately 360 stores had voted in favor of unionizing, while around 70 voted against it, out of the company's 9,300 company-operated locations in the US. The introduction of new benefits, including wage increases, was announced by Starbucks on Monday.

Sara Kelly, Starbucks' Chief Partner Officer, emphasized that these investments in pay would lead to increased stability and higher employee retention. The improved benefits are also expected to enhance the customer experience. Non-union employees will be eligible for additional vacation time sooner, but the issue of pay is more complex. Starbucks announced that starting January 1, all eligible workers at company-operated US stores will see a 3% pay increase annually. Employees with 2-5 years of tenure will receive a minimum pay bump of 4%, while those with over five years of service will receive at least a 5% increase.

Union members will receive the wage increases that were locked in last year, which vary. This means that many unionized workers will receive the 3% or 4% hike, while some will receive the 5% increase. However, the company will not provide any new pay raises or vacation accrual benefits to unionized workers unless mandated through collective bargaining negotiations.

Starbucks aims to improve scheduling for all employees, regardless of their union status, by considering their feedback and providing the desired hours.

Starbucks' argument is that it cannot legally offer certain benefits to its unionized employees without bargaining with the union first. However, an NLRB judge ruled against the company, stating that offering wage increases solely to non-unionized baristas constituted an attack on employees' right to choose union representation.

Starbucks spokesperson Rachel Wall defended the company's position, stating that Starbucks has adhered to legal obligations by differentiating between unionized or organizing partners and partners in other stores. Wall assured that where possible, Starbucks would continue to improve partner benefits and perks, emphasizing that all union-represented stores would receive annual wage increases consistent with standard practice.

Both Starbucks and union organizers have accused each other of failing to engage in bargaining discussions, leading to NLRB regional offices issuing complaints against the company. A hearing for a consolidated complaint on this matter is currently ongoing.

Starbucks Workers United member Alex Yeager stressed that withholding benefits from unionized stores is against the law and claimed that the union's efforts have driven some of the recent changes. Yeager pointed out that they have been advocating for scheduling changes for over two years and also credited the union for prompting Starbucks to introduce credit-card tipping at non-union locations.

Locations that have successfully voted for unionization have faced strong opposition from the company, leading to allegations of illegal practices by the NLRB. Earlier this year, an NLRB judge accused Starbucks of "egregious and widespread misconduct" in its interactions with employees involved in unionizing Buffalo, New York, stores. Starbucks is currently appealing the decision.

The introduction of higher pay and benefits was discussed during an investor event last Thursday, where Starbucks outlined its plans for growth. Alongside wage increases, the company aims to double the number of digital rewards members over the next five years, streamline its stores, and expand its global presence. Starbucks has been experiencing significant revenue growth, with a record-breaking revenue of $9.4 billion in the fourth quarter and a full-year revenue of $36 billion.

However, union member Alex Yeager deemed the 3% wage increases "tone-deaf" after Starbucks' substantial financial success and reiterated the importance of their fight for union representation.