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Thousands of Starbucks baristas across the US launched an indefinite strike Thursday, calling for better pay, increased staffing, and a fair union contract.

The walkout coincides with Starbucks' annual Red Cup Day promotion, when customers receive free reusable holiday cups.

According to CBS News, Starbucks Workers United, representing more than 9,500 employees at roughly 550 stores, dubbed the strike the "red cup rebellion."

The union said the work stoppage began at over 65 locations in more than 40 cities, with no set end date.

"There are already stores that have been shut down for the day, and we anticipate dozens more will close today as well," said union spokesperson Michelle Eisen, a 15-year Starbucks barista.

She added that the strike could escalate if the company does not address unfair labor practices.

"No contract, no coffee is more than a tagline — it's a pledge to interrupt Starbucks operations and profits until a fair union contract and an end to unfair labor practices are won," Eisen said.

Despite the strike, Starbucks described the impact as minimal. A spokesperson, Jaci Anderson, said fewer than 1% of the company's 17,000 US locations were affected Thursday morning.

Barista Says $17 an Hour Isn't Enough

CEO Brian Niccol noted that Starbucks already offers competitive wages and benefits, including an average pay of $19 per hour and healthcare for employees working at least 20 hours weekly, Reuters reported.

Union members counter that many baristas cannot reach enough hours to qualify for benefits. "I make $17 an hour, and I live paycheck to paycheck," said Chicago barista Diego Franco.

"I can't sustain myself on that. I can't sustain my mom's medical bills."

Negotiations between Starbucks and Workers United began in April 2024 but stalled in December.

While the union has secured tentative agreements on 33 non-economic proposals, it says critical issues like wages and staffing remain unresolved. The union authorized the strike last week, with 92% of members voting in favor.

The strike marks the union's third national work stoppage in a year, following protests over dress codes in May and walkouts during the 2024 holiday season.

Cities affected this week include New York, Seattle, Philadelphia, Dallas, Portland, and more.

Investors appear largely unfazed, with Starbucks shares closing down about 1% Thursday. Analysts say the strike currently affects a small fraction of stores and is unlikely to significantly impact earnings.