This is a great article and the first time I recall learning about the end of a unionization process. I have always been curious about the outcome and of unionizing and how positive change would be realized for employees and for management. I would love to read the exact same article from management's perspective to learn a company's view on the process and the outcome. This article presents a quantification of new benefits for employees - it would be educational to learn how Intelligentsia plans to pay for these negotiated contract terms. Knowing the company perceptive could be beneficial to other unions involved in the bargaining process.
Ok, I couldn't stop thinking about $$$ so I tried to do some very rudimentary calculations. For this exercise, I'm going to assume the highest end salaries and wages:
31 baristas x $18/hr (I think this is MUCH higher than the actual average but again, wanted to see how large these numbers can get). Again, assuming every barista works 40 hours for 52 weeks (which I'm sure very few do), a 10% payroll increase is about 116k per year, which is nothing for an org trying to combat turnover across five stores. If we're being slightly more realistic, I'd bet the cost to the company is maybe half that? And considering there are a number of C-suite employees whose salaries are likely double or triple any of the numbers I suggested, I think this is a very doable amount.
Scaling this down for smaller businesses, I think the cost of unionizing is so much less than we've been led to believe.
At the end of the negotiations it is important for both sides to be happy with the outcome and have an action plan to maintain or even improve the operation. The financial and operational costs from raises, holiday pay, increased vacation, and paid breaks etc. is real and could have a substantial impact to the business profitably. In addition to my curiosity regarding the company perspective and how they plan to manage these business changes, I am interested to revisit the company in 6-12 months and judge the impact over time: hopefully the business is thriving with happy union employees in an efficient and profitable operation.
You raise very real concerns! I just think people have been wrongly led to believe unionization is about money on the end of businesses — I think it's much more about power. Like, if it were about money, we could lop off $20k on six execs without batting an eye — but you're right that these are convos we need to have and be transparent about, and I hope we get to see this conversation continue! Thank you for your comment and pushing me to think more about the sustainability of these issues!
This is a really good point and I wish more folks on the management side shared their insights — I think Intelli recognizes that their brand relies on baristas (every coffee brand does, but I doubt many really know what that entails or how to show true support).
This is a great article and the first time I recall learning about the end of a unionization process. I have always been curious about the outcome and of unionizing and how positive change would be realized for employees and for management. I would love to read the exact same article from management's perspective to learn a company's view on the process and the outcome. This article presents a quantification of new benefits for employees - it would be educational to learn how Intelligentsia plans to pay for these negotiated contract terms. Knowing the company perceptive could be beneficial to other unions involved in the bargaining process.
Ok, I couldn't stop thinking about $$$ so I tried to do some very rudimentary calculations. For this exercise, I'm going to assume the highest end salaries and wages:
31 baristas x $18/hr (I think this is MUCH higher than the actual average but again, wanted to see how large these numbers can get). Again, assuming every barista works 40 hours for 52 weeks (which I'm sure very few do), a 10% payroll increase is about 116k per year, which is nothing for an org trying to combat turnover across five stores. If we're being slightly more realistic, I'd bet the cost to the company is maybe half that? And considering there are a number of C-suite employees whose salaries are likely double or triple any of the numbers I suggested, I think this is a very doable amount.
Scaling this down for smaller businesses, I think the cost of unionizing is so much less than we've been led to believe.
At the end of the negotiations it is important for both sides to be happy with the outcome and have an action plan to maintain or even improve the operation. The financial and operational costs from raises, holiday pay, increased vacation, and paid breaks etc. is real and could have a substantial impact to the business profitably. In addition to my curiosity regarding the company perspective and how they plan to manage these business changes, I am interested to revisit the company in 6-12 months and judge the impact over time: hopefully the business is thriving with happy union employees in an efficient and profitable operation.
You raise very real concerns! I just think people have been wrongly led to believe unionization is about money on the end of businesses — I think it's much more about power. Like, if it were about money, we could lop off $20k on six execs without batting an eye — but you're right that these are convos we need to have and be transparent about, and I hope we get to see this conversation continue! Thank you for your comment and pushing me to think more about the sustainability of these issues!
This is a really good point and I wish more folks on the management side shared their insights — I think Intelli recognizes that their brand relies on baristas (every coffee brand does, but I doubt many really know what that entails or how to show true support).