Starbucks workers rallied in Little Tokyo in front of the first store in L.A. to file for a union election. The nationwide unionization effort is a response to firings, cutting of hours and alleged harassment by Starbucks.
LOS ANGELES -- Starbucks workers rallied in Little Tokyo Tuesday in front of the first store in Los Angeles to file for a union election.
Starbucks' sales climbed to record levels in its fiscal second quarter, but its profits took a hit from climbing labor costs. The Seattle coffee company, which welcomed back former CEO Howard Schultz last month as its interim leader, said revenue rose 15% to a record $7.6 billion in its 13-week quarter, which ended April 3. That was in line with Wall Street's estimates, according to analysts polled by FactSet.
Starbucks noted that it faced higher employment costs during the quarter. Last fall, the company announced a $1 billion investment in employee wages and benefits in an effort to lift U.S. workers' pay to at least $15 per hour by this summer.
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