Starbucks workers are experiencing significant increases in health insurance premiums beginning in October, according to a survey of over 130 employees conducted by Starbucks Workers United and shared with news outlets. In some cases, workers reported their premium costs per paycheck nearly doubled, creating financial strain as they attempt to cover basic living expenses.
The timing of these increases coincides with ongoing labor disputes at the company. Starbucks Workers United launched a boycott last month demanding union contracts, which would represent the first such agreements since store unionization efforts began in December 2021. More than 700 Starbucks locations have since voted to unionize, with the union representing approximately 12,000 workers.
Specific examples illustrate the impact on individual workers. A nine-year barista in Edina, Minnesota experienced a weekly premium increase from $130 to $170, reducing her monthly income by $160. A barista in Woods Cross, Utah saw his biweekly premium rise from $70 to $122, and noted the increases make his necessary heart medication unaffordable. Several workers indicated they are either dropping coverage entirely or considering supplementary employment to manage costs.
Starbucks Workers United filed an unfair labor practice charge after the company declined to provide information about factors driving the premium increases and how the company’s healthcare contribution was affected. A Starbucks spokesperson responded that the company, like employers nationwide, faces rising healthcare costs while maintaining commitment to providing coverage for employees working 20 hours or more weekly. The company did not address the specific charge filed by the union.
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