Compass Coffee workers at seven stores launch union drive (2024)

A group of Compass Coffee workers announced plans Friday to unionize more than a third of its stores, pressing the D.C.-based chain to end its no-tipping policy and improve benefits and working conditions.

Organizers said 84 percent of union-eligible employees at seven cafes signed authorization cards supporting membership with Workers United, an SEIU affiliate that has organized more than 425 Starbucks stores since 2021. The National Labor Relations Board (NLRB) requires signatures from at least 30 percent of eligible voters to qualify for a union election. They also delivered a letter of intent to Compass co-founder and chief executive Michael Haft on Friday afternoon.

“It’s important for any worker to have a union … and especially in food service, which is an intensely exploitative industry,” said Cameron Call, a Compass employee and a member of the organizing committee. “Just because we’re not saving lives or putting out fires, doesn’t mean that it’s not worth having a secure career with a fair income and benefits.”

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After receiving the letter of intent, Haft said he spent Friday afternoon in discussion with his leadership team and has yet to decide on a course of action. If the company voluntarily recognizes the union, workers would be able to forgo a union election.

“At Compass Coffee we recognize and deeply value the hard work and dedication of our employees,” says Haft in a written message. “Our team is critical to our success, and we are committed to ensuring that they are respected, supported and fairly compensated. We take their concerns seriously and are committed to actively engaging in constructive dialogue to address them.”

The campaign — which involves four cafes in downtown D.C. and one each in Georgetown, Spring Valley and Rosslyn, Va. — is one of several playing out at independent and regional coffee shops across the country amid tensions over pay, benefits and working conditions.

For the Compass workers, the no-tip policy is a primary issue. When it was adopted in March 2020, they say they were assured that a corresponding bump in their hourly wages would make up the difference. But staffers, who currently make $18 to $27.50 an hour depending on their role and tenure, say the decision ended up reducing their take-home pay. They also say raises are rare for baristas and supervisors outside of promotions. Organizers say there’s only been one — ranging from 25 to 50 cents per hour — since the coronavirus pandemic.

“We’re not even asking management to raise our wages,” said Joseph Babin, a store supervisor and organizing committee member. “We’re asking [management] to keep them the same and let us have our tips.”

If customers ask about tipping or make comments about price increases, employees are instructed to say gratuities are included in the menu price, according to Babin and three other employees. “That is a lie,” he said, adding that any worker who accepts a cash tip risks being fired. (After this report was published, Haft said that accepting a cash tip is not a fireable offense at Compass.)

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Benefits are also a sticking point. While Compass offers benefits such as health care and paid time off, employees say the company suspended 401(k) retirement plans for hourly workers last fall and raised health-care deductibles and prescription costs in March.

A growing local chain

Haft and co-founder Harrison Suarez opened the first Compass Coffee shop and roastery in 2014 in Washington’s Shaw neighborhood. The two Marine Corps veterans transformed a onetime laundromat into a neighborhood hot spot with an industrial-meets-Apple Store vibe. (Suarez stepped back from day-to-day operations in 2021.)

Today, the company has 17 shops in the District and Northern Virginia, along with its roastery in Ivy City. Its Cardinal, Waypoint and Cherry Blossom blends, among others, can be found on grocery store shelves throughout the region, and it has partnered with Coinbase and The Washington Post on special coffee blends. It supplies the White House and NASA, and it has created custom coffee tins for the military. Net sales at the privately held company have more than doubled since 2021, to about $16.9 million a year, according to financial documents reviewed by The Post.

Haft and chief revenue officer Max Deem see growth potential in the suburbs, in line with the customer migration of the pandemic, according to a person familiar with the plans, who spoke on the condition of anonymity because they were not authorized to speak publicly.

But the person expressed worry that adding more stores in the near future would stretch resources and exacerbate turnover. Baristas and supervisors rarely have regular schedules, the person said, and often work at multiple stores — sometimes in the same day.

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“This is all avoidable — that’s the frustrating part,” the person said. “Communicating, and taking time to listen, mentor, train, develop — those are things within our power.”

Employees also raised concerns about building and equipment maintenance, store temperatures and a lack of a human resources department.

Haft said the company was not yet in a position to respond to specific concerns. “Our priority is to foster a positive and collaborative work environment where every worker feels valued and heard,” he said in a written statement. “Together — our shared aim — is to build a future for Compass Coffee that benefits our employees, our customers and our organization.”

Part of a movement

Cafe workers across the country have been signing union cards in search of improved working conditions, consistent hours and higher wages — from Upstate New York to the San Francisco Bay Area, as well as Pittsburgh, Chicago, Boston and Seattle. But contracts, and even union votes, have proved elusive.

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Even the high-profile unionization drive at Starbucks has yet to yield an agreement, though both sides say “significant progress” was made after two days of bargaining in late April. Workers United, which represents more than 10,000 employees, is pushing for higher wages and various scheduling and benefits upgrades.

A ratified Starbucks contract could encourage more organizing efforts, said Ruth Milkman, a labor sociologist and professor at the City University of New York. “If you feel that you can actually seal the deal, it’s just another impetus.”

Many unionizing efforts get publicized on social media and ultimately inspire other workers, Milkman said. “There is a kind of copycat aspect to this. … People thought, oh, okay, they did this, maybe we can do it.” But they almost always face pushback from the companies, “which rarely concede without struggle.”

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Some companies have followed a playbook developed by law firms that specialize in union busting. A few have closed shop rather than face a union vote, or fired workers linked to organization efforts. Employers, union experts say, can be emboldened in the face of union organizing because there are no actual penalties for violating U.S. labor laws. The National Labor Relations Board can order a company to reopen a closed store or reinstate fired employees, they say, but it cannot levy any fines that might discourage such behavior.

Earlier this month, the owners of Washington’s Wydown coffee shops abruptly shut down stores, laying off 30 employees, after workers announced a union drive.

At Compass, employees are waiting for the company’s response and planning rallies at several locations starting Saturday.

“We’re hoping that the company realizes that the workers are just looking for their fair share and not looking to destroy a business,” said Tyler Hoffman, a staff organizer at Workers United. “They want a say in their workplace, and we’re hoping that the company makes a good choice to voluntarily recognize the union.”

Tim Carman contributed to this report.

Compass Coffee workers at seven stores launch union drive (2024)
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