Starbucks Workers United launched an open-ended strike in more than 40 cities Thursday on Red Cup Day, one of the chain’s biggest sales days of the year. CNBC's Kate Roger's joins 'Squawk on the Street' with the details.

New York

Starbucks workers in over 40 cities initiated a strike on a key holiday sales day, known as Red Cup Day, after negotiations between the company and Workers United failed to produce a collective bargaining agreement. The union reports that more than 1,000 workers are participating in the strike, which is open-ended and could escalate if demands are not met.

Starbucks stated that previous strikes have affected less than 1% of its 17,000 locations and that most stores remain open. The union, which first organized in 2021, is calling for a fair contract and resolution of alleged unfair labor practices, while both sides continue to blame each other for the lack of agreement.

Starbucks workers union launches strike on key holiday sales day

Welcome back. Starbucks workers in dozens of cities launching a strike today on one of the most important days of the year for the company. Kate Rogers has that story for us. Morning, Kate. Good morning, Sarah. Workers United has launched its strike today at more than 65 stores in over 40 cities after the two sides failed to reach a collective bargaining agreement. The timing is significant. It's Red Cup Day and one of Starbucks' busiest days of the holiday season. The union says more than 1,000 workers are set to participate and it is willing to escalate. Rather, the timing is open-ended, so there is the potential here for this to stretch. Take a look at all of the unionized stores on this map. The union is threatening here the largest, longest strike in company history if Starbucks fails to deliver a fair union contract and resolve unfair labor practice charges. Both sides point blame on the other for failure to reach a contract. This holiday season will be key to CEO Brian Nichols' turnaround plans, which have started to take shape. The company recently broke a two-year streak of same-store sales declines in the U.S. Starbucks says past strikes have impacted less than 1% of its stores and the vast majority of its 17,000 locations are open and ready to serve customers. Spokesperson Jackie Anderson said in part, quote, We're disappointed that Workers United, who represents less than 4% of our partners, has called for a strike. Instead of returning to the bargaining table, we've been very clear. When the union is ready to come back to the bargaining table, we're ready to talk. Remember, the union first organized in 2021. The company has since had three new CEOs and no contract or resolution has been reached yet. Guys, back over to you. Yeah, Kate, it's been a long hunt for a contract, at least for union workers, that's for sure. Kate Rogers watching Starbucks today.

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