Earlier this month, the nearly 200-member strong union in Chile launched Starbucks' first strike at company-owned stores, seeking pay that keeps up with inflation, a $100 monthly lunch stipend, as well as other benefits.
The Seattle-based company operates roughly 17,000 cafes in more than 50 countries around the world. The vast majority of its cafes are not unionized.Union workers account for roughly 30 percent of Starbucks' overall work force of nearly 700 in Chile. Despite the strike, the Starbucks' cafes have remained open in the country.
Starbucks maintains that its pay and other compensation in Chile -- which includes stock awards, merit increases and comprehensive health coverage for full- and part-time workers -- is "above and beyond" what is offered by the coffee chain's peers in that market.
However as per reports, a Starbucks Corp executive sent a memo to company leaders late on Tuesday, saying the company would welcome back striking workers and that it hopes for an amicable resolution to the ongoing labor dispute.
It will be intresting to note the developments considering that Starbucks is a global brand and given the fact that it is known for its focus on employee engagement.
Back in 2008 when Starbucks Chairman Howard Schultz took over as CEO he was was blunt, telling analysts the company had lost sight of its mission and would rededicate itself to "laser-like focus on the customer experience."Schultz strongly believed that respect for employees will translate into better customer service, which ultimately leads to a stronger bottom line. He brought in a belief that engaged employees—those who are committed to the vision and values of their organization—generate higher sales and customer loyalty. Schultz had gone on record to say - "We're in the people business. Of course we sell coffee as a product, but we're in the people business. It's all human connection. We've been able to crack the code at creating an environment where people are treated well, they're respected, and they're valued. Customers come in and can see it's a different kind of environment, almost an oasis."
Watch-out this space for more.
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