Podcast Summary: Marketplace Morning Report
Episode: What's been brewing at the Starbucks labor union?
Date: September 11, 2025
Host: David Brancaccio (Marketplace)
Main Guest: Michelle Eisen (Starbucks Workers United organizer and founding member)
Episode Overview
In this episode, David Brancaccio delves into recent developments concerning Starbucks Workers United, the union representing thousands of Starbucks baristas across the U.S. The conversation focuses on progress toward a first union contract, ongoing challenges in labor negotiations, and worker frustrations under Starbucks’ current CEO, Brian Nicol. Insights from a key union leader, background on the state of negotiations, and responses from Starbucks corporate round out the segment.
Key Discussion Points & Insights
Latest Inflation Data (01:02–02:42)
- Brief Recap: Before the main segment, the episode provides a quick economic update on inflation, discussing a higher-than-expected Consumer Price Index (CPI) reading for August.
- Expert Insight: Diane Swonk (Chief Economist, KPMG) comments on inflation accelerating, especially in durable goods sensitive to tariffs.
- Federal Reserve Outlook: Ongoing debate within Fed about the next interest rate move; not expected to alter plans significantly but may create divisions.
Starbucks Labor Union Update (04:07–07:52)
- Guest Introduction: Michelle Eisen, founding member and organizer, Starbucks Workers United, brings a first-hand view of labor issues facing Starbucks baristas.
Unionization Progress and Contract Bargaining (04:26–04:47)
- Union Growth: About 12,000 Starbucks employees at 600 stores have voted to unionize.
- Contract Status: Zero workers currently have a union contract, although they were previously making steady progress.
“That would be zero are currently working under a union contract. But we are very, very close.” — Michelle Eisen (04:41)
Change in CEO and Impact on Negotiations (04:47–05:40)
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CEO Transition: Labor negotiations stalled under new CEO Brian Nicol, despite some public recognition of store challenges.
“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.” — Michelle Eisen (04:47)
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Working Conditions: Michelle claims new policies have worsened barista conditions.
“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.” — Michelle Eisen (05:22)
Core Barista Concerns (05:40–06:13)
- Staffing and Compensation: Insufficient staffing, reduced hours, and low take-home pay are top issues.
“These are baristas who are working for a multibillion dollar corporation headed by a CEO who made $96 million in the first four months...who are barely making enough take home pay to pay their bills.” — Michelle Eisen (05:43)
Negotiation Status and Requests to Management (06:13–06:39)
- Stalled Talks: No current negotiations; union repeatedly invites CEO Nicol to join talks.
- Simple Fix: Michelle emphasizes this is a solvable issue, easily resolved financially.
“It could be settled for less than a single day's earnings.” — Michelle Eisen (06:39)
Connection to Customer Experience (06:39–07:43)
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Staffing & Service Quality: Union believes contract resolution would reduce wait times and improve service.
“We have offered viable solutions in the bargaining process that focuses specifically on getting workers enough hours to allow the stores to be staffed appropriately. And, you know, they're essentially falling on deaf ears.” — Michelle Eisen (07:00)
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Union’s Motivation: Employees' goal is a thriving company with better working conditions.
“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.” — Michelle Eisen (07:35)
Starbucks Corporate Response (07:55–08:53)
- Company Statement: Starbucks asserts store experience for workers has improved under Nicol; claims retail partner turnover is at record lows and about half the industry average.
- Criticism of Union: Starbucks accuses the union of presenting incomplete contracts and walking away from bargaining, slowing progress.
- Full statements available at marketplace.org.
Brief Boeing Labor Update (08:53–09:12)
- Other Labor News: Boeing workers (military hardware division) have a tentative strike settlement—details pending vote.
Notable Quotes & Memorable Moments
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“That would be zero are currently working under a union contract. But we are very, very close.”
— Michelle Eisen (04:41) -
“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.”
— Michelle Eisen (05:22) -
“It could be settled for less than a single day's earnings.”
— Michelle Eisen (06:39) -
“We have offered viable solutions in the bargaining process...they're essentially falling on deaf ears.”
— Michelle Eisen (07:00) -
“Retail partner turnover and is at record lows and about half the industry average.”
— Starbucks spokesperson (07:55)
Timestamps of Important Segments
- 01:02 – Inflation update with KPMG economist
- 04:07 – Introduction of Starbucks Workers United segment
- 04:26 – Status of union contracts
- 04:47 – Impact of CEO change on negotiations
- 05:40 – Barista frustrations: pay and staffing
- 06:13 – Negotiation status and appeal to management
- 07:00 – Will a contract fix wait times and staffing?
- 07:55 – Starbucks’ rebuttal and company statement
- 08:53 – Boeing strike update
Episode Tone & Language
The conversation is direct, pragmatic, and informative, reflecting both the urgency union organizers feel and the cautious tone of corporate communications. Michelle Eisen speaks candidly about workers’ struggles, keeping her focus on practical challenges and solutions. Starbucks’ response is measured, emphasizing improvements and pointing blame back at the union for lack of progress.
Summary
This episode offers a concise but detailed look at the ongoing labor dispute between Starbucks and its unionized workforce. Listeners gain a clear understanding of the union’s grievances, the company’s rebuttal, and the broader implications for customer experience. The episode also briefly touches on national inflation trends and a parallel labor dispute at Boeing, contextualizing the Starbucks story within broader economic and labor dynamics.