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Tag: Starbucks Corp

  • China’s plans to scrap Covid quarantine rules is a win for key Club holdings

    China’s plans to scrap Covid quarantine rules is a win for key Club holdings

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    People use their smartphones to take photographs outside The Wynn Macau casino resort, operated by Wynn Resorts Ltd., in Macao, China, on Tuesday, Jan. 30, 2018.

    Billy H.C. Kwok | Bloomberg | Getty Images

    China’s latest move to roll back its zero-Covid policy by scrapping quarantine restrictions for international travelers is the last leg of recovery we’ve been waiting for to help bolster Club holdings that have been weighed down by three years of stringent pandemic rules.

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  • Real coffee, but a fake ‘Starbucks’ in piracy-ridden Iraq

    Real coffee, but a fake ‘Starbucks’ in piracy-ridden Iraq

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    BAGHDAD — Everything from the signboard outside down to the napkins bears the official emblem of the top international coffee chain. But in Baghdad, looks are deceiving: The “Starbucks” in the Iraqi capital is unlicensed.

    Real Starbucks merchandise is imported from neighboring countries to stock the three cafes in the city, but all are operating illegally. Starbucks filed a lawsuit in an attempt to shut down the trademark violation, but the case was halted after the owner allegedly threatened lawyers hired by the coffee house.

    Be careful, he told them — and boasted of ties to militias and powerful political figures, according to U.S. officials and Iraqi legal sources.

    “I am a businessman,” Amin Makhsusi, the owner of the fake branches, said in a rare interview in September. He denied making the threats. “I had this ambition to open Starbucks in Iraq.”

    After his requests to obtain a license from Starbucks’ official agent in the Middle East were denied, “I decided to do it anyway, and bear the consequences.” In October, he said he sold the business; the cafes continued to operate.

    Starbucks is “evaluating next steps,” a spokesman wrote Wednesday, in response to a request for comment by The Associated Press. “We have an obligation to protect our intellectual property from infringement to retain our exclusive rights to it.”

    The Starbucks saga is just one example of what U.S. officials and companies believe is a growing problem. Iraq has emerged as a hub for trademark violation and piracy that cuts across sectors, from retail to broadcasting and pharmaceuticals. Regulation is weak, they say, while perpetrators of intellectual property violations can continue doing business largely because they enjoy cover by powerful groups.

    Counterfeiting is compromising well-known brands, costing companies billions in lost revenue and even putting lives at risk, according to businesses affected by the violations and U.S. officials following their cases.

    Qatari broadcaster beIN estimated it has lost $1.2 billion to piracy in the region, and said more than a third of all internet piracy of beIN channels originated from companies based in northern Iraq. The complaint was part of a a public submission this year to the U.S. Special 301 Report, which publicly lists countries that do not provide adequate IP rights.

    Iraq is seeking foreign investment away from its oil-based economy, and intellectual property will likely take center stage in negotiations with companies. Yet working to enforce laws and clamp down on the vast web of violations has historically been derailed by more urgent developments in the crisis-hit country or thwarted by well-connected business people.

    “As Iraq endeavors to diversify its economy beyond the energy sector and attract foreign investment in knowledge-based sectors, it is critical that companies know their patents and intellectual property will be respected and protected by the government,” said Steve Lutes, vice president of Middle East Affairs at the U.S. Chamber of Commerce.

    Makhsusi insists he tried the legal route but was denied a license from Starbucks’ regional agent based in Kuwait. He also said he attempted to reach Starbucks through contacts in the United States, but that these were also unsuccessful.

    He depicts his decision to open a branch anyway as a triumph over adversity.

    Cups, stir sticks and other Starbucks merchandise are obtained in Turkey and Europe, using his contacts, he said. “The coffee, everything is authentic Starbucks,” Makhususi added.

    Makhsusi said he “had a session” with a lawyer in Baghdad to come to an understanding with the coffee company, “but so far we have not reached a solution.”

    The law firm recounts a different version of events.

    Confidentiality agreements prevent the firm from divulging details of the case to third parties, but the AP spoke to three Iraqi legal sources close to the case. They spoke on condition of anonymity in order to provide details. They also asked the name of the firm not be mentioned for security reasons.

    They said that in early 2020, the firm was hired by Starbucks and sent a cease-and-desist notice to Makhsusi. They said that the businessman then told one of the lawyers on the case that he ought to be careful, warning that he had backing from a prominent Iranian-backed armed group and support from Iraqi political parties.

    “They decided it was too risky, and they stopped the case,” the Iraqi legal source said. Makhsusi denied that he threatened Starbucks’ lawyers.

    Makhsusi said doing business in Iraq requires good relations with armed groups, the bulk of whom are part of the official state security apparatus.

    “I have friendly relations with everyone in Iraq, including the armed factions,” he said. “I am a working man, I need these relationships to avoid problems, especially given that the situation in Iraq is not stable for business.”

    He did not name particular armed groups he was in contact with. The AP contacted two groups known to have business dealings in the areas where the cafes are located, and both said they had not worked with Makhsusi.

    Counterfeiters and pirates have stepped up activity in Iraq in the past five years, particularly as Gulf countries have responded to U.S. pressure and become more stringent regulators, said a U.S. official in the State Department, speaking on condition of anonymity because he was not authorized to talk about the trends.

    The broadcaster beIN has sent cease-and-desist letters to Earthlink, Iraq’s largest internet service provider. Earthlink offers subscribers a free streaming service, Shabakaty, which beIN alleges is composed almost entirely of pirated content. Iraq’s Communications Ministry, which partners with Earthlink, did not respond to a request for comment.

    “It’s unheard of and completely outrageous,” said Cameron Andrews, director of beIN’s anti-piracy department. “It’s a huge market, so it’s a great deal of commercial loss.”

    But the larger issue for beIN is the piracy that originates inside Iraq and bleeds into the rest of the region and the world, he said. After being copied by these companies, beIN’s channels are re-streamed on pirate IPTV services, and become accessible all over the region, according to beIN. The company’s investigation found that some Iraqi operators even distribute pirated content in the U.S.

    At least two U.S. pharmaceutical companies have approached the U.S. Chamber of Commerce with complaints that their trademark was being used to sell counterfeit life-saving medication by Iraqi companies.

    “I worry if regulatory lapses or infringements in IP protection are allowed, then U.S. companies will be deterred from doing business in Iraq and quality of care could be dangerously jeopardized for Iraqi patients,” said Lutes.

    The companies did not accept to be named in this report or detail the types of medications.

    Successive Iraqi governments promised to fight graft since the 2003 U.S.-led invasion reset Iraq’s political order, but none has taken serious steps to dismantle the vast internal machinery that enables state-sanctioned corruption.

    Intellectual property has also historically been a low priority for Iraq. Limited bilateral talks with the U.S. over the issue have been on and off for the past five years.

    The challenge is to find a “clear leader in the Iraqi government that is interested in IP issues as a way to attract foreign investment,” said a U.S. State Department official. “Until that person exists, it is difficult for us to engage.”

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  • Jim Cramer’s Investing Club meeting Wednesday: Santa Claus rally, down-and-out buys, Starbucks call, Sunday Ticket

    Jim Cramer’s Investing Club meeting Wednesday: Santa Claus rally, down-and-out buys, Starbucks call, Sunday Ticket

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  • University of California workers reach deal to end strike

    University of California workers reach deal to end strike

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    LOS ANGELES — The University of California reached an agreement Friday with some 36,000 graduate student teaching assistants and other academic workers for increased pay and benefits that could potentially end a monthlong strike at the prestigious state system.

    The strike disrupted classes at all 10 of the university system’s campuses and was the largest strike of academic workers in the nation. The agreement still needs to be ratified before the strike officially ends.

    The bargaining units said some workers could see raises of up to 66% over the next two years.

    The pay hikes and boost in benefits could have an impact beyond California. For several decades, colleges and universities have increasingly relied on faculty and graduate student employees to do teaching and research that had previously been handled by tenured track faculty — but without the same pay and benefits.

    The UC strike was being closely watched around the country, in part because it is the largest strike of academic workers in higher education, said William A. Herbert, executive director of the National Center for the Study of Collective Bargaining in Higher Education and the Professions at Hunter College in New York.

    The strike at UC, like the others, is “providing guidance to indicate that strikes are very forceful means of accomplishing goals,” he said.

    The agreement comes weeks after the UC system reached a similar deal with postdoctoral employees and academic researchers who make up about 12,000 of the 48,000 union members who walked off the job and onto picket lines Nov. 14. That agreement will hike pay up to 29% and provide increased family leave, childcare subsidies and lengthened appointments to ensure job security, according to a statement from United Auto Workers Local 5810.

    The academic workers had argued they couldn’t afford to live in cities such as Los Angeles, San Diego and Berkeley, where housing costs are soaring, with the current salaries.

    The strike came at a time of increased labor action nationwide, not just in higher education but among workers at Starbucks, Amazon and elsewhere and a groundswell of unionization efforts among graduate student employees at other universities.

    Just this year, graduate student employees at MIT, Clark University, Fordham University, Mexico State University, Washington State University and Worchester Polytechnical Institute all voted in favor of unionization.

    ———

    Watson reported from San Diego.

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  • Starbucks workers plan 3-day walkout at 100 US stores

    Starbucks workers plan 3-day walkout at 100 US stores

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    Starbucks workers around the U.S. are planning a three-day strike starting Friday as part of their effort to unionize the coffee chain’s stores.

    More than 1,000 baristas at 100 stores are planning to walk out, according to Starbucks Workers United, the labor group organizing the effort. The strike will be the longest in the year-old unionization campaign.

    This is the second major strike in a month by Starbucks’ U.S. workers. On Nov. 17, workers at 110 Starbucks stores held a one-day walkout. That effort coincided with Starbucks’ annual Red Cup Day, when the company gives reusable cups to customers who order a holiday drink.

    More than 264 of Starbucks’ 9,000 company-run U.S. stores have voted to unionize since late last year.

    Starbucks opposes the unionization effort, saying the company functions better when it works directly with employees. But the company said last month that it respects employees’ lawful right to protest.

    Tori Tambellini, a former Starbucks shift supervisor and union organizer who was fired in July, said she will be picketing in Pittsburgh this weekend. Tambellini said workers are protesting understaffed stores, poor management and what she calls Starbucks’ “scorched earth method of union busting,” including closing stores that have unionized.

    Workers United noted that Starbucks recently closed the first store to unionize in Seattle, the company’s hometown. Starbucks has said the store was closed for safety reasons.

    Starbucks and the union have begun contract talks in about 50 stores but no agreements have been reached.

    The process has been contentious. According to the National Labor Relations Board, Workers United has filed at least 446 unfair labor practice charges against Starbucks since late last year, including that the company fired labor organizers and refused to bargain. The company, meanwhile, has filed 47 charges against the union, among them allegations that it defied bargaining rules when it recorded sessions and posted the recordings online.

    So far, the labor disputes haven’t appeared to dent Starbucks’ sales. Starbucks said in November that its revenue rose 3% to a record $8.41 billion in the July-September period.

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  • Starbucks workers strike at more than 100 US stores

    Starbucks workers strike at more than 100 US stores

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    Starbucks workers at more than 100 U.S. stores are on strike Thursday in their largest labor action since a campaign to unionize the company’s stores began late last year.

    The walkouts coincide with Starbucks’ annual Red Cup Day, when the company gives free reusable cups to customers who order a holiday drink. Workers say it’s often one of the busiest days of the year. Starbucks declined to say how many red cups it plans to distribute.

    Workers say they’re seeking better pay, more consistent schedules and higher staffing levels in busy stores. Stores in 25 states planned to take part in the labor action, according to Starbucks Workers United, the group organizing the effort. Strikers are handing out their own red cups with union logos.

    Starbucks, which opposes the unionization effort, said it is aware of the walkouts and respects its employees’ right to lawfully protest. The Seattle company noted that the protests are happening at a small number of its 9,000 company-run U.S. locations.

    “We remain committed to all partners and will continue to work together, side-by-side, to make Starbucks a company that works for everyone,” the company said Thursday in a statement.

    Some workers planned to picket all day while others will do shorter walkouts. The union said the goal is to shut stores down during the strikes, and noted that the company usually has difficulty staffing during Red Cup Day because it’s so busy.

    Willow Montana, a shift manager at a Starbucks store in Brighton, Massachusetts, planned to strike because Starbucks hasn’t begun bargaining with the store despite a successful union vote in April.

    “If the company won’t bargain in good faith, why should we come to work where we are understaffed, underpaid and overworked?” Montana said.

    Others, including Michelle Eisen, a union organizer at one of the first stores to organize in Buffalo, New York, said workers are angry that Starbucks promised higher pay and benefits to non-union stores. Starbucks says it is following the law and can’t give union stores pay hikes without bargaining.

    At least 257 Starbucks stores have voted to unionize since late last year, according to the National Labor Relations Board. Fifty-seven stores have held votes where workers opted not to unionize.

    Starbucks and the union have begun contract talks at 53 stores, with 13 additional sessions scheduled, Starbucks Workers United said. No agreements have been reached so far.

    The process has been contentious. Earlier this week, a regional director with the NLRB filed a request for an injunction against Starbucks in federal court, saying the company violated labor law when it fired a union organizer in Ann Arbor, Michigan. The regional director asked the court to direct Starbucks to reinstate the employee and stop interfering in the unionization campaign nationwide.

    It was the fourth time the NLRB has asked a federal court to intervene. In August, a federal judge ruled that Starbucks had to reinstate seven union organizers who were fired in Memphis, Tennessee. A similar case in Buffalo has yet to be decided, while a federal judge ruled against the NLRB in a case in Phoenix.

    Meanwhile, Starbucks has asked the NLRB to temporarily suspend all union elections at its U.S. stores, citing allegations from a board employee that regional officials improperly coordinated with union organizers. A decision in that case is pending.

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  • Starbucks workers plan strikes at more than 100 US stores

    Starbucks workers plan strikes at more than 100 US stores

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    Starbucks workers at more than 100 U.S. stores say they’re going on strike Thursday in what would be the largest labor action since a campaign to unionize the company’s stores began late last year.

    The walkouts are scheduled to coincide with Starbucks’ annual Red Cup Day, when the company gives free reusable cups to customers who order a holiday drink. Workers say it’s often one of the busiest days of the year. Starbucks declined to say how many red cups it plans to distribute.

    Workers say they’re seeking better pay, more consistent schedules and higher staffing levels in busy stores. Starbucks opposes the unionization effort, saying the company functions best when it works directly with employees. The Seattle coffee giant has more than 9,000 company-owned stores in the U.S.

    Stores in 25 states planned to take part in the labor action, according to Starbucks Workers United, the group organizing the effort. Some workers planned to picket all day while others planned shorter walkouts. The union said the goal is to shut the stores down during the walkouts.

    Willow Montana, a shift manager at a Starbucks store in Brighton, Massachusetts, planned to strike because Starbucks hasn’t begun bargaining with the store despite a successful union vote in April.

    “If the company won’t bargain in good faith, why should we come to work where we are understaffed, underpaid and overworked?” Montana said.

    Others, including Michelle Eisen, a union organizer at one of the first stores to organize in Buffalo, New York, said workers are angry that Starbucks promised higher pay and benefits to non-union stores. Starbucks says it is following the law and can’t give union stores pay hikes without bargaining.

    At least 257 Starbucks stores have voted to unionize since late last year, according to the National Labor Relations Board. Fifty-seven stores have held votes where workers opted not to unionize.

    Starbucks and the union have begun contract talks at 53 stores, with 13 additional sessions scheduled, Starbucks Workers United said. No agreements have been reached so far.

    The process has been contentious. Earlier this week, a regional director with the NLRB filed a request for an injunction against Starbucks in federal court, saying the company violated labor law when it fired a union organizer in Ann Arbor, Michigan. The regional director asked the court to direct Starbucks to reinstate the employee and stop interfering in the unionization campaign nationwide.

    It was the fourth time the NLRB has asked a federal court to intervene. In August, a federal judge ruled that Starbucks had to reinstate seven union organizers who were fired in Memphis, Tennessee. A similar case in Buffalo has yet to be decided, while a federal judge ruled against the NLRB in a case in Phoenix.

    Meanwhile, Starbucks has asked the NLRB to temporarily suspend all union elections at its U.S. stores, citing allegations from a board employee that regional officials improperly coordinated with union organizers. A decision in that case is pending.

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  • Starbucks says higher prices, customizable beverages will carry it through potential economic winter

    Starbucks says higher prices, customizable beverages will carry it through potential economic winter

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    Ever since Starbucks Corp. rolled out longer-term financial targets in September, Wall Street has wondered how the coffee chain might meet what analysts say were ambitious goals, as rising prices drain consumer spending. For at least the year ahead, executives on Thursday called out three ways to get there: higher prices, younger customers and cold, customizable beverages.

    For the fiscal year ahead, executives for the coffee chain on Thursday said they expected global same-store sales to be “near the high end” of its long-term target of between 7% to 9% growth. FactSet expects growth of 8.6%.

    When an analyst asked what gave management confidence in that target, interim Chief Executive Howard Schultz said that its coffee was an “affordable luxury,” and that it was armed with a loyalty program that it didn’t have in years past. And they said its customers were getting younger, not older.

    “Not only has it gotten younger, but that young, Gen Z customer tends to have significantly more discretionary money at their disposal,” he said. “And their loyalty to Starbucks has been quite significant and predicted.”

    He said Starbucks
    SBUX,
    +0.12%
    had raised prices by nearly 6% over the past 12 months and hadn’t seen demand subside. And he said cold coffee beverages made up 76% percent of total drink sales in its U.S. company-owned stores. In the fourth quarter, more than half of beverages overall in those stores were customized, leading to $1 billion in sales a year for add-on syrups, foams and other ingredients.

    “I think customization, which we spoke a lot about in our prepared remarks, is obviously giving us the ticket is becoming more accretive,” he said.

    Management said they expect U.S. same-store sales growth of 7% to 9% for the year ahead. For China, they’re banking on “outsize” growth for the metric — interrupted by a decrease in the first-quarter — as the nation potentially emerges from pandemic-related lockdowns.

    For overall revenue, they expect gains of between 10% and 12%. Management also said they would resume their buyback program in fiscal 2023.

    Even as the Federal Reserve tries to chart a path to lower prices, Starbucks is the latest company to say it still has “pricing power,” or the ability to charge customers more. Snack maker Mondelez International
    MDLZ,
    -0.93%    ,
    earlier in the week, said it planned to raise prices through next year. Similarly, its own chief executive also described its snacks as an “affordable indulgence.”

    Prior to the call, Starbucks reported fiscal fourth-quarter results that beat expectations, helped by a boost in U.S. sales and higher prices.

    The coffee chain reported net income of $878 million, or 76 cents a share, compared with $1.76 billion, or $1.49 a share, in the same quarter last year. Revenue rose 3% to $8.4 billion, compared with $8.15 billion in the prior-year quarter.

    Same-store sales rose 7% worldwide, helped largely by bigger ticket sizes, even as actual transaction volume remained muted. They were up 11% in the U.S. But international same-store sales fell 5%, with a 16% drop in China.

    Excluding restructuring, impairment and other costs, Starbucks earned 81 cents per share, compared with 99 cents a year earlier. U.S. members of its loyalty program who were active for three months rose 16% to 28.7 million.

    Analysts polled by FactSet expected Starbucks to report adjusted earnings per share of 72 cents, on revenue of $8.323 billion. Same-store sales were expected to rise 4.2%.

    Shares rose 2.4% after hours.

    As with other restaurants and retailers, Starbucks’ sales this year have been helped by price increases. Analysts have also said higher-income consumers, who might not mind higher prices as much, as well as demand for cold beverages, have propelled demand. While China’s COVID-19 restrictions have weighed on sales, analysts say demand trends are strong elsewhere.

    “The U.S. business is humming, and the China risk is increasingly understood,” Wedbush analyst Nick Setyan wrote in a research note ahead of Starbucks’ earnings.

    The earnings report comes as Starbucks battles a nascent unionization push at some of its stores. Some bargaining efforts between the company and the union members have stalled, amid allegations from both of bad-faith negotiations. The company over the past year has spent more to raise employee pay and rolled out other incentives at non-union stores.

    Starbucks stock has tumbled 27% so far this year. The S&P 500 Index
    SPX,
    -1.06%    ,
    by comparison, is down around 22%.

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  • Consumers pay 14.1% more on average for pumpkin-spice products

    Consumers pay 14.1% more on average for pumpkin-spice products

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    We may be paying a price for our pumpkin-spice cravings.

    A new study from the MagnifyMoney.com website has found that retailers routinely charge more for pumpkin-spice items than for the standard versions of those same products — in fact, a lot more. On average, the pumpkin-spice “tax,” as MagnifyMoney.com dubs it, is 14.1%.

    That’s a significant increase from 2020, which was the last time MagnifyMoney looked at the pumpkin-spice pricing differential. At that time, the “tax” was 8.8%.

    “I think companies are finding it’s a great way to capitalize on a seasonal trend,” said Ismat Mangla, executive editor of MagnifyMoney.com. “As long as consumers are willing to pay for it, they can take advantage of it.” MagnifyMoney.com, which is owned by LendingTree, offers information on how to manage and grow your money.

    Craig Agranoff, a Florida-based marketing expert, put it this way: “It’s Retailing 101.”

    Some retailers really push the pumpkin-spice upcharge to the upper limits, the 2022 study noted. A case in point: Trader Joe’s, the supermarket chain beloved for its low prices, charges 161.1% more for its Pumpkin Spiced Teeny Tiny Pretzels than for its Honey Wheat Pretzel Sticks. The retailer also charges 49.9% more for its Pumpkin Spice Hummus than for its Mediterranean Style Hummus.

    And what about Starbucks
    SBUX,
    -1.60%    ,
    the coffee chain that made pumpkin spice a household favorite? The study found that it levies an 18.3% “tax” on its ever-popular Pumpkin Spice Latte (or PSL), with a standard 16-ounce latte running $5.45 and the PSL costing $6.45.

    Trader Joe’s and Starbucks didn’t respond to a MarketWatch request for comment.

    Agranoff said consumers are probably willing to pay more for pumpkin-spice products without complaining because the products are not considered essentials. By contrast, consumers tend to be very sensitive when it comes to price increases on items they need to buy on a regular basis, such as milk or gasoline.

    Still, not every retailer is asking consumers to shell out more for pumpkin-spice products. Target
    TGT,
    -1.28%
    charged less for several items versus the standard ones, the MagnifyMoney.com study found. One example: A bag of Pepperidge Farm Milano pumpkin-spice cookies was 14.3% cheaper than the traditional Milano cookies at Target.

    Regardless of whether the price is higher or lower, Mangla of MagnifyMoney.com isn’t one to buy these products. “Personally, I’m over pumpkin spice,” she said.

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  • Unions could face a big obstacle in 2023 if the economy falls into a recession

    Unions could face a big obstacle in 2023 if the economy falls into a recession

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    Hannah Whitbeck (C) of Ann Arbor, Michigan, speaks as Alydia Claypool (L) of Overland Park, Kansas, and Michael Vestigo (R) of Kansas City, Kansas, all of whom say they were fired by Starbucks, listen during the “Fight Starbucks’ Union Busting” rally and march in Seattle, Washington, on April 23, 2022.

    Jason Redmond | AFP | Getty Images

    The union movement that kicked off across the country more than a year ago has continued its momentum in 2022, with workers in warehouses, coffee shops, grocery stores and airlines pushing for representation.

    Working conditions during the pandemic pushed many of these frontline workers to organize, but fears about the economy and a potential recession could stand to curb the union boom if the job market shifts.

    Unions can help workers secure better pay, schedules and job security through contract agreements, but some organizers claim their employers retaliate against them and endanger their livelihoods.

    Workers like Robert “Rab” Bradlea, 32, are willing to take on this risk, despite recession talk. Bradlea scaled back his hours at Trader Joe’s Wine Store in New York City and picked up a second job as he and some of his coworkers sought to unionize.

    Bradlea said the move to organize under the United Food and Commercial Workers International Union had the support of most of his coworkers. Some opposed joining a union, either because of previous experience or fear of losing their jobs. But Bradley thought only he and his fellow organizers were putting themselves at risk.

    “I thought they would look for ‘bad apples’ and weed out organizers specifically, rather than torch an entire store,” Bradlea said.

    Instead, before the beloved wine store could even file a petition for a union election, Trader Joe’s abruptly closed the location on Aug. 11, telling employees that same day. Trader Joe’s spokesperson Nakia Rohde said in a statement to CNBC that the grocer opted to close the “underperforming” store to support its Union Square grocery store using the wine shop’s space ahead of the holiday season.

    2022’s union boom

    So far, this year has proved to be a success for the labor movement. Union petitions from Oct. 1 through June 30 were up 58% over the prior year, to 1,892, according to the National Labor Relations Board.

    By May of this year, petitions for the year had exceeded the total number of filings in all of last year. The NLRB has yet to release full year data, but a CNBC analysis of filings shows nearly 900 more petitions in fiscal year 2022 over last year’s numbers.

    This comes at a time when public approval of labor unions continues to climb. Recent Gallup data show  71% of Americans now approve of labor unions, up from 68% last year and 64% pre-pandemic. The measure is at its highest level on record since 1965.

    The job market, particularly for retail trade, accommodation, food services and transportation and warehousing workers, is still favoring employees, with a combined 1 million more job openings today in those three sectors compared with pre-pandemic levels.

    “Right now in the retail space, we have so many more jobs than we do workers, and that puts disproportionate power in our hands right now because the company needs them almost as much as we need them,” said Hannah Smith, an employee at the recently unionized REI store in Berkeley, California.

    REI did not respond to a request for comment from CNBC.

    The shift in the balance of power has led some employers to hike pay and enhance other benefits. For example, Amazon said on Wednesday that it’s hiking average hourly pay from $18 to more than $19 for warehouse and delivery workers. The announcement comes ahead of its annual Prime Day promotion and a busy holiday season, as well as a union election in Albany next month.

    As the Federal Reserve continues to aggressively raise interest rates to fight inflation and cool down the economy, market watchers, economists and executives are warning of a potential recession in 2023. If the economy cools off, the union movement may follow suit, according to Catherine Creighton, director of Cornell University’s Industrial and Labor Relations branch in Buffalo. But it seems unlikely in the short term.

    “I think it will certainly make it more difficult if we do have a recession, where it’s harder for employees to find other employment, they [may] be less likely to take the risk of unionization,” Creighton said. “I don’t see that we are in that position at this point, because employers are still having a really hard time filling jobs, the baby boomers have retired and all evidence points to the fact that the labor market is going to be favorable to employees in the near future.”

    For now, advocates believe the momentum will be hard to slow down. Whether it’s petitions or other wins, like a California law that creates a council to govern the fast-food industry labor conditions, 2022 has been a banner year for organizing.

    “I think it’s the collective action that you’re seeing that isn’t going to get stopped by whatever the recessionary forces are, because working people have walked through fire during this pandemic, showed up every day to work, in many cases risk their lives,” said Mary Kay Henry, president of the Service Employees International Union. “And they’re ready to expect more in their work life and demand dignity and respect on the job.”

    Starbucks petitions slow down

    Some employees say interest in organizing has fallen somewhat as their employers appear to fight back, using tactics like shuttering stores, firing organizers and offering tantalizing benefits to non-union shops only.

    At Starbucks, for example, the number of union petitions fell every month from March through August. There was a slight uptick in September with 10 petitions filed so far, according to the NLRB.

    Since interim CEO Howard Schultz returned to the company in April, Starbucks has adopted a more aggressive strategy to oppose the union push and invest in its workers.

    In May, the company announced enhanced pay hikes for non-unionized stores and extra training for baristas that went into effect in August after holding feedback sessions with its employees. The union has said the coffee giant is illegally withholding the benefits from cafes, but Starbucks maintains it cannot offer new benefits without negotiations for union shops. Legal experts predict the benefits battle will wind up before the NLRB.

    “Our focus is on working directly with our partners to reimagine the future of Starbucks. We respect our partners rights to organize but believe that working directly together – without a 3rd party – is the best way to elevate the partner experience at Starbucks,” Starbucks spokesperson Reggie Borges told CNBC.

    Tyler Keeling works as barista trainer at a Starbucks in Lakewood, California, which has voted to unionize, and also is organizing other stores with Starbucks Workers United. He said the additional benefits not being offered to unionized stores has both intimidated and motivated people, and that better pay is important in this economic climate.

    “People are seeing that Starbucks is willing to kind of mess with their livelihood to prevent this union, and that scares people. But at the end of the day, as far as it is driving people to not organize, it’s also driving people to organize,” Keeling said.

    He added that he believes once the union makes continued progress on having fired workers reinstated and is successful in having benefits extended to union stores, there will be more headway made on petitions.

    And stores are still pushing for more despite the threat of a looming recession. Billie Adeosun, Starbucks barista and organizer in Olympia, Washington, said unionizing is a “big risk,” claiming losing your job is a “real possibility,” but the prospect of successful contract negotiations with better pay and benefits is a motivator.

    “Most of us make $15 to $18 an hour and none of us are working 40 hours a week, and that’s just not a living wage,” Adeosun said. “A lot of us have to get a second job or rely on government assistance to pay our bills, so yeah, we are terrified to be doing this work in spite of the economy and the fact that it is just falling apart right in front of us.”

    About 240 locations out of its 9,000 company-owned cafes have voted to unionize as of Sept. 22, according to the National Labor Relations Board. But contract negotiations could help or hinder the push to unionize the nation’s largest coffee chain.

    BTIG analyst Peter Saleh said signs of progress on a contract between the union and Starbucks could be one catalyst to reaccelerate organizing. On the other hand, if they don’t reach an agreement, workers can vote to decertify the union after a year.

    So far, Starbucks has only begun negotiating with three stores, two in New York and one in Arizona. But the company said Monday that it sent letters to 238 cafes offering a three-week window in October to start negotiations.

    And despite the petition slowdown at Starbucks, organizers’ success has inspired workers elsewhere, like Bradlea, the Trader Joe’s employee.

    “Their stores are about the same number people as the Trader Joe’s wine store. This is doable, and they’re succeeding at it,” he said.

    Power in the balance

    Even with talk of a potential recession, some workers say they’re undeterred, given the competitive job market. Brandi McNease, organizer at a now-closed location of Chipotle Mexican Grill in Augusta, Maine, said the decision to petition was driven by the power workers have and the current economic climate.

    “We looked around at the endless now-hiring signs plastered on every fast food drive-through menu and decided that we could just quit and take another job or we could fight, and if we lost, still take another job,” McNease told CNBC in an email.

    The store was the first to file for a union election at the burrito chain, and the company said the location was permanently closed due to staffing challenges, not the union petition.  Workers called the move retaliatory and have filed multiple unfair labor practice charges against the company with the NLRB, McNease said.

    Chipotle declined to comment.

    Some workers say the last recession has informed the need for better worker protections today, and now is the time to push.

    “I had coworkers who lived through the 2008 recession and had a really tough time finding jobs then,” said Smith, the REI employee in California. “Creating a union now, it felt like a way to protect for that in the future.”

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