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Bernie Sanders Targets Starbucks Over CEO's $96 Million While Union Workers Wait Years For Contract

MarketDash Editorial Team
9 days ago
Sen. Bernie Sanders is taking aim at Starbucks again, highlighting the stark contrast between CEO Brian Niccol's massive compensation package and the nearly 12,000 unionized baristas still waiting for a contract after almost four years of negotiations.

Sanders Calls Out Corporate Priorities

Sen. Bernie Sanders isn't letting up on Starbucks Corp (SBUX). On Friday, the Vermont independent took to X to hammer the coffee giant for what he sees as wildly misplaced priorities: rewarding CEO Brian Niccol with a $96 million compensation package over four months while nearly 12,000 unionized workers remain without a contract after almost four years of waiting.

"This is what corporate greed is all about," Sanders wrote, making it clear he's standing with the baristas pushing for better conditions. It's hard to miss the contrast he's drawing here. The company found plenty of money to bring Niccol on board with an eye-popping package, but finalizing a union contract? That's apparently still a work in progress.

Historic Strike Spreads Across the Country

Sanders' comments arrived as Starbucks Workers United kicked off what's now the longest strike in Starbucks' history. The walkout expanded to more than 120 stores spanning 85 U.S. cities, with workers demanding higher pay, better staffing levels, improved scheduling, and action on hundreds of alleged labor violations.

The timing wasn't accidental. Workers launched the strike around Red Cup Day and Black Friday, two of the busiest periods for the chain. It's a strategic move designed to maximize pressure when the company can least afford disruption.

Company Says Business Continues As Usual

Starbucks isn't backing down either. The company insists that 99% of its U.S. locations remain open despite the walkouts and claims the strike won't cause significant disruption. A company spokesperson told CNBC that Starbucks is prepared to resume negotiations whenever the union returns to the table.

Starbucks Workers United, which represents over 11,000 baristas at roughly 550 stores, tells a different story. The union says talks have been stuck for months, with delegates rejecting a Starbucks proposal earlier this year that included annual wage increases. The two sides clearly aren't seeing eye to eye on what constitutes fair terms.

Financial Performance Shows Mixed Results

Meanwhile, the company's October earnings report painted a mixed picture. Starbucks posted fourth-quarter revenue of $9.57 billion, beating analyst expectations of $9.35 billion. That's the good news. The not-so-good news? Adjusted earnings landed at 52 cents per share, missing the 56-cent consensus estimate.

Overall net revenue climbed 5% year-over-year, while global comparable store sales edged up 1%, supported by a 1% increase in customer transactions. Not exactly explosive growth, but steady enough given the headwinds.

The stock itself tells an interesting story about investor sentiment. It's showing negative trends over the medium and long term as labor disputes continue to escalate, though there's been some short-term positive movement. Investors seem to be taking a wait-and-see approach, weighing the company's financial performance against the ongoing union tensions that show no signs of quick resolution.

Back to News

Bernie Sanders Targets Starbucks Over CEO's $96 Million While Union Workers Wait Years For Contract

MarketDash Editorial Team
9 days ago
Sen. Bernie Sanders is taking aim at Starbucks again, highlighting the stark contrast between CEO Brian Niccol's massive compensation package and the nearly 12,000 unionized baristas still waiting for a contract after almost four years of negotiations.

Sanders Calls Out Corporate Priorities

Sen. Bernie Sanders isn't letting up on Starbucks Corp (SBUX). On Friday, the Vermont independent took to X to hammer the coffee giant for what he sees as wildly misplaced priorities: rewarding CEO Brian Niccol with a $96 million compensation package over four months while nearly 12,000 unionized workers remain without a contract after almost four years of waiting.

"This is what corporate greed is all about," Sanders wrote, making it clear he's standing with the baristas pushing for better conditions. It's hard to miss the contrast he's drawing here. The company found plenty of money to bring Niccol on board with an eye-popping package, but finalizing a union contract? That's apparently still a work in progress.

Historic Strike Spreads Across the Country

Sanders' comments arrived as Starbucks Workers United kicked off what's now the longest strike in Starbucks' history. The walkout expanded to more than 120 stores spanning 85 U.S. cities, with workers demanding higher pay, better staffing levels, improved scheduling, and action on hundreds of alleged labor violations.

The timing wasn't accidental. Workers launched the strike around Red Cup Day and Black Friday, two of the busiest periods for the chain. It's a strategic move designed to maximize pressure when the company can least afford disruption.

Company Says Business Continues As Usual

Starbucks isn't backing down either. The company insists that 99% of its U.S. locations remain open despite the walkouts and claims the strike won't cause significant disruption. A company spokesperson told CNBC that Starbucks is prepared to resume negotiations whenever the union returns to the table.

Starbucks Workers United, which represents over 11,000 baristas at roughly 550 stores, tells a different story. The union says talks have been stuck for months, with delegates rejecting a Starbucks proposal earlier this year that included annual wage increases. The two sides clearly aren't seeing eye to eye on what constitutes fair terms.

Financial Performance Shows Mixed Results

Meanwhile, the company's October earnings report painted a mixed picture. Starbucks posted fourth-quarter revenue of $9.57 billion, beating analyst expectations of $9.35 billion. That's the good news. The not-so-good news? Adjusted earnings landed at 52 cents per share, missing the 56-cent consensus estimate.

Overall net revenue climbed 5% year-over-year, while global comparable store sales edged up 1%, supported by a 1% increase in customer transactions. Not exactly explosive growth, but steady enough given the headwinds.

The stock itself tells an interesting story about investor sentiment. It's showing negative trends over the medium and long term as labor disputes continue to escalate, though there's been some short-term positive movement. Investors seem to be taking a wait-and-see approach, weighing the company's financial performance against the ongoing union tensions that show no signs of quick resolution.