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SALT LAKE CITY — As Kat Howard watched several Starbucks stores in Buffalo, New York, unionize and become the first workers in the giant coffee chain to do so, it seemed like a distant possibility for any Utah Starbucks store.
But what appeared as a far-off movement arrived suddenly on March 31 as the employees at the Cottonwood Heights Starbucks store announced their intent to unionize. The announcement was one of many labor movements sweeping the United States — but to Utah service-based employees it signaled a change.
"We were a little timid to try in Utah, just because of the conservative background, but then once the Cottonwood Heights store unionized, we decided that it was time to organize our store," said Luke Laro, a barista at the Starbucks on 400 East and 400 South in Salt Lake City.
"I think really it was just a catalyst for us," added Howard.
A large majority of the employees signed union authorization cards in support of the effort, in a 25-1 vote. The store's intent to unionize was announced Monday along with a letter to Starbucks CEO Howard Schultz signed by employees.
"We were on the front lines every single day of the COVID-19 pandemic," the letter from employees states. "We put our health and possibly even our lives at risk for a company that it felt, quite frankly, couldn't care less. We weren't properly informed of exposures and were rushed back to work in order to maximize profits instead of aiming to keep everyone safe. Starbucks used this stressful time to their advantage and played the part of a socially aware company, while exploiting their employees and sending mixed signals on what they truly cared about."
Among complaints of exploitation during the COVID-19 pandemic, the baristas cited the need for better wages, more stable hours and access to better health care.
"We believe that the current system of corporate officers making changes to our policies and benefits lacks partner representation. We believe that we have valuable input and we want to make our voices heard and we believe that we need to do that," Laro said.
Both Howard and Laro pointed to an increase in profits but said only the company's executive-level employees are seeing the benefits. One executive-level employee received a 60% base-level salary bump from $500,000 to $800,000 in 2021 after a promotion, according to a U.S. Securities and Exchange Commission financial filing.
"I need a wage that can help support my college education and keep me afloat in this economy with all this inflation. I think the fact that they haven't given us a raise — our pay is $12 an hour in downtown Salt Lake City — is incredibly unfair. It's basically a poverty wage," said Laro. "I personally want a higher wage so I can pay rent, get groceries and fund my education."
As Starbucks stores across the U.S. have begun to attempt to unionize, the company has said it is "listening and learning from the partners in these stores."
The history of unionization — and what's to come
Opinions on the legality and membership of unions have changed along with labor practices throughout the centuries. Unions date back to the early 1800s and around the 1870s specifically in Utah.
"Originally, unions were seen as a criminal conspiracy and it was illegal to join a union," said Peter Philips, a labor economist professor at the University of Utah.
Times began to change during the Great Depression, as unemployment rose to 25%.
"That led to considerable labor unrest because employers at that time, because they felt they were under pressure from falling prices, cut wages, and when they cut wages that meant that for the 3 out of the 4 workers who still had a job, their jobs were paying them less and less as a consequence," said Philips.
The unrest led to the passage of the National Labor Relations Act, which encouraged employers and employees to engage in collective bargaining. This law became the basic law that governs unions and employers and the negotiations between them that we still see today.
Unions and strikes have had an ebb and flow, along with the economy throughout the years. Recent economic events have created a catalyst for the current upsurge of unionization.
"After the downturn of the Great Recession, workers, particularly in the service sector, began to basically feel they couldn't do their work and make a living at it and so what we're seeing now, particularly in a period of very low unemployment, is an upsurge of unionization," said Philips.
Membership in unions has been in a consistent decline. Union membership used to be common with 1 in 3 workers belonging to a union — now that number is 1 in 12.
But membership may see an uptick as labor unrest amid increased inflation and the COVID-19 pandemic has boiled over. While the labor unrest didn't begin with the coronavirus, the pandemic placed a spotlight on the growing frustration of workers.
"Membership is not only low but it's been falling for decades," said Philips. "Now that may be turning around. And one reason it might be turning around is because you can push people only so far."
The employees at the Salt Lake City store remain optimistic.
"I feel like the struggle of the working classes, unionization is something that even people on both sides of the political spectrum can sometimes agree," said Howard. "It's important to let people know that it's OK to realize that you deserve more. You deserve to be treated in a better way than you are. And it's OK to voice that."
What challenges do the employees and company face?
The path to unionization is not easy. Philips pointed to some challenges employees could face in their attempt:
1. Representational election run by the National Labor Relations Board
The election can be difficult to win for several reasons, said Philips. Those reasons include gaining access to workers when employers may not allow electioneering in the workplace or may punish those promoting unionization. Despite it being illegal to punish those promoting unionization, it still happens.
"Even if in the long run, that person appeals to the National Labor Relations Board (which) says that they were fired for a pretext and in reality are fired for promoting a union drive — that often comes way too late when the union drive has lost steam or been discouraged," said Philips.
2. High turnover in the service industry
"There is high turnover in service sector jobs and if you have a union drive that, say, is lasting six months, the people you talk to at the beginning of that drive may not still be employed by the employer at the end of that drive," said Philips. "The voting population are those who are employed at the point that the National Labor Relations Board runs an election."
Even if the election is successful on the union's behalf, there may be difficulty in gaining a contract.
All things considered, the nature of Starbucks as a company may aid the workers as they attempt to unionize.
"These are national companies and they have to worry about their reputation, not just in Salt Lake City, but in New York City. Not just in Utah, but in Washington state and as a consequence of that, they're not going to ride the anti-union bandwagon quite as hard as perhaps a local company that embraces local conservativism strongly," said Philips.
