Starbucks employees say the company's health coverage has become too costly to keep, causing many qualified workers to give up their benefits.
Here's what to know
According to The Guardian, a survey of more than 130 Starbucks workers at union and non-union stores found that health insurance premiums increased starting October 1, with some baristas seeing their costs nearly double. Several workers said the higher premiums mean they expect to go without coverage.
In Edina, Minnesota, barista Kaye-Lani Story said her weekly premium to cover herself and her son was set to increase from $130 to $170.
"That is another $40 each week that I am not going to have in my income, if I choose to go with it, and that's just not something that financially I can afford," she said.
The timing overlaps with a labor fight at the company. Starbucks Workers United began a boycott as it pushed for what would be its first union contract. According to The Guardian, the union drive started in December 2021, and workers at more than 700 Starbucks stores have since voted to unionize, with the union saying it represents more than 12,000 employees.
More background
Story had previously been eligible for Minnesota's state health insurance, but she switched to Starbucks's plan after her income rose too high for the state program.
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"I make too much to qualify for coverage through the state. I don't make enough to keep my medical coverage through work, and so at this point, I just have to drop it completely," Story said. She added: "During the winter, the heating bill goes up. During the summer, the electric bill goes up from the AC. There are just all these wavering things throughout the year that I have to pull from to be able to apply to expenses just to be able to keep a roof over my head and food on the table and whatnot, and then this happens, and it's too much."
In Woods Cross, Utah, barista Cory Wagner said he relies on heart medication and is now being forced to balance that need against other expenses after his premium rose from $70 per biweekly paycheck to $122.
"Now I'm kind of left at a point where I am choosing between paying for this medication and paying for my utility bills, paying for my groceries, paying for the gas that I need to get to work," he said.
What's being done?
Starbucks Workers United filed an unfair labor practice charge after saying the company did not respond to a request for information about the insurance changes, including what caused the higher fees and whether Starbucks's contribution to healthcare costs changed.
In an email cited by The Guardian, a Starbucks spokesperson did not comment on the unfair labor practice charge but said, "like employers across the country, we continue to face rising healthcare costs while remaining committed to providing quality, affordable healthcare coverage for full and part-time partners at Starbucks, beginning at just 20 hours per week."
Where can I learn more?
Beyond health coverage, Starbucks workers have also raised concerns about company policies on executive travel and food waste. Read these articles for more details.
• Starbucks stirred backlash after approving CEO private jet travel amid worker frustrations.
• Starbucks employees condemned food thrown out daily at stores across the United States.
• At Starbucks, baristas said display food waste made already tense working conditions worse.
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