Starbucks workers in over 40 cities went on an open-ended strike on Red Cup Day, impacting more than 1,000 baristas across 65 stores after failed negotiations. The strike may affect holiday sales, crucial for Starbucks’ recovery in the U.S. Starbucks reported improved sales recently and the strike had limited impact on Thursday morning sales.

The union is seeking better hours, higher wages, and resolution of labor practice charges. Talks with Starbucks broke down last year, leading to mediation in February. Starbucks proposed an economic package in April that was rejected. The union represents over 12,000 workers in 550 stores, while Starbucks claims 9,500 workers in 550 cafes.

Workers are prepared to extend the strike, aiming for a fair union contract. Starbucks mentioned readiness to serve customers during the holidays despite the strike. Starbucks workers say they are committed to halting operations until a fair contract is reached. The company believes a reasonable deal can be achieved quickly if negotiations resume.

Read more at CNBC: Starbucks Workers United union strikes on Red Cup Day