It’s a little over one year since Starbucks CEO Brian Niccol joined the company and announced a new strategy to improve the in-store experience for both employees and customers. How much of that has been achieved in these last 12 months? Are workers noticing anything different? Especially workers at Starbucks stores that have voted to unionize, and are still awaiting a first contract from collective bargaining.

To answer those questions, “Marketplace Morning Report” spoke with both an organizer from the Starbucks Workers United union, and the company.

Michelle Eisen is a founding member of Starbucks Workers United and worked as a Starbucks barista for 15 years. She spoke with host David Brancaccio. The following is an edited transcript of their interview.

David Brancaccio: So where are we here? Twelve-thousand people who are working at Starbucks have voted for a union at about 600 Starbucks outlets in recent years. How many right now are working under a union contract? I think I know the answer.

Michelle Eisen: That would be zero are currently working under a union contract, but we are very, very close.

Brancaccio: You're making some progress?

Eisen: I mean, we were making significant progress under the previous CEO. We were actually bargaining with the company for a solid nine months and making significant progress in solidifying this first contract. And, unfortunately, under this current CEO, that has stalled out.

Brancaccio: Yeah, you and I are talking one year, really, to the date since a new CEO took the chair, Brian Niccol. I think I've read stuff from Mr. Niccol saying he recognizes that working conditions can be a challenge at Starbucks. Is he changing those conditions for the better?

Eisen: I think that's very interesting, that he recognizes the issues that baristas are facing, the folks who run these stores every single day and bring in those billions of dollars of profit. But all of the policy changes, at least that I've witnessed, since he came into this role a year ago, have only made those conditions worse.

Brancaccio: What are some of the frustrations that come to mind?

Eisen: Staffing, and hours that baristas are given, which allows those stores to be staffed appropriately and deal with the volume of customers. It centers around take-home pay — the fact that these are baristas who are working for a multibillion dollar corporation headed by a CEO who made $96 million in the first four months of his employment with Starbucks, who are barely making enough take-home pay to pay their bills.

Brancaccio: So where does it stand? I mean, are the two sides even talking right now?

Eisen: They're not. We have made consistent requests, invitations for Brian himself to join negotiations so that we can get this ball rolling again. Look, we know that the company is dealing with a lot of issues. Failing to settle this union contract with their unionized staff is just one, but this is an easy solve. Like they could solve this tomorrow, and it would be one less thing that the company was having to deal with. It could be settled for less than a single day's earnings.

Brancaccio: Now for customers going into Starbucks, I'm sure there's a percentage that care deeply about the working conditions of the people serving them. But many of them want, you know, a decent cup of coffee and they don't want to wait in a long line. Do you think resolving the unionization issue might help with, for instance, wait times?

Eisen: I absolutely think that it would. It is an issue that baristas have been facing for a number of years. It was one of the chief things that we organized around. It was the fact that we don't feel like we're being supported in a way that allows us to serve the customers the way the company would like us to serve the customers, and the way we would like to serve the customers. And we have offered viable solutions in the bargaining process that focus specifically on getting workers enough hours to allow the stores to be staffed appropriately. And they're essentially falling on deaf ears. The company has yet to respond in any way to those proposals. We are here because we want the company to do well. We want things to be better. Otherwise there'd be no point in sticking around.

In response to the claims made by Eisen and Starbucks Workers United, a Starbucks spokesperson said the following in an email:

“The facts show Back to Starbucks is making the experience better for both customers and partners. Retail partner turnover is at record lows and about half the industry average. More partners are getting the shifts they want. And more partners than ever recommend Starbucks as a great place to work. Our $500 million Green Apron Service investment means bigger rosters, and more partners working busy shifts, supported by new technology designed to make their lives easier. We’re committed to continuing to be the best job in retail. Hourly partners earn an average of $30 per hour in pay and benefits, including free college, comprehensive health care, and up to 18 weeks of paid family leave for part-time work.

Here is Brian’s message to partners.”

Additionally, Starbucks said the following about contract negotiations:

“In April of this year, despite nearly 200 hours of negotiations and more than 130 proposals exchanged, Workers United made the decision to present an incomplete framework for single-store contracts to their delegates to vote on, effectively undermining our collective progress. This was following repeated instances of the union walking away from the bargaining table during negotiations — most recently in the last full session of December of 2024. It’s actions like this by the union that have created additional delay in reaching a mutual agreement for single-store contracts.

“Our partners are losing patience with the union’s inaction. Over the last year, one in four petitioning stores voted against representation. We’re also seeing fewer new petitions filed in the second half of this fiscal year.

“Starbucks is ready to finalize a fair contract for represented partners. But we need Workers United back at the table to get it done.”

The company also said the following in regard to comments about Niccol’s compensation:

“Brian has established himself as one of the most effective leaders in our industry, with a proven track record of delivering long-term value to employees, customers and shareholders. The majority of his reported first-year compensation reflects multi-year replacement equity grants, awarded to offset compensation forfeited upon his departure from Chipotle, which are now directly tied to Starbucks future performance.

“Consistent with industry practices, his comprehensive and competitive executive compensation plan reflects the significant returns he generated at Chipotle, as well as the long-term performance expectations we have for the company under his leadership.”