The new CEO Laxman Narasimhan is being welcomed by unionized workers at Starbucks Corporation SBUX.
What happened to the unionized workers who are demanding that the coffee chain stop its anti-union activities, according to Bloomberg.
The stoppage of work will affect 40 cities in the United States and comes just a day before Narasimhan is due to participate in his first annual shareholder's meeting on Thursday.
Striking workers from Oregon and Washington are planning a midday protest outside Starbucks headquarters in Seattle.
Starbucks Workers United said on Wednesday that they are demanding a real seat at the table, while the coffee chain keeps a metaphorical empty chair for us in the boardroom. How to Buy Starbucks SBUX Shares?
Why It Matters: Narasimhan took over the reins of Starbucks a week ahead of schedule on Monday. He replaced the three-time CEO and founder Howard Schultz.
Schultz will testify for Senate Health, Education, Labor, and Pensions Committee in front of Sen. Bernie Sanders I-Vt.
It was reported last year that Starbucks illegally withheld wages and benefits from union workers. The company issued a denial at the time, saying it had been following the guidelines set by the National Labor Relations BoardLabor Relations Board NLRB. The union has prevailed in nearly 290 Starbucks corporate-owned U.S. cafes, according to Bloomberg.
The unionization process at Starbucks has slowed down as the company prefers to dish out increased pay and benefits to non-unionized cafes.
The after-hours trading of Starbucks rose by 0.1%, and the share price was 1.4% lower at $99.12, according to the Benzinga Pro data.
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