new york – starbucks Workers United held a rally outside the Empire State Building on Thursday as its indefinite strike enters its third week with no signs of an imminent resolution.
Hundreds of picketers gathered outside the famous landmark, adding to the crowd of holiday shoppers and tourists. The landmark is also home to a sleek three-story Starbucks Reserve store and the company’s regional headquarters.
Members of other unions, including the Workers United-affiliated AFL-CIO and the Service Employees International Union, joined the baristas in protesting, with speakers chanting “No coffee, no contracts” and “What’s disgusting? Union busting.”
“Their fight is really a fight for all of us, workers across the country, companies like Starbucks, workers across the country who are tired of the status quo and are not going to put up with it anymore,” SEIU President April Verrett told CNBC.
Twelve demonstrators were arrested for blocking the entrance to the building.
Baristas went on strike last month on Starbucks Red Cup Day, demanding a new proposal from the company that would address the biggest problems with their contract. These include improving working hours, increasing wages, and resolving hundreds of unfair labor practice charges brought against Starbucks.
A company spokesperson said 55 of the 145 stores that participated in the strike remain closed.
Since negotiations between the two sides broke down at the end of last year, the two sides have not actively negotiated a contract. The strike has not changed that fact so far.
The strike has added uncertainty to Starbucks’ busy holiday season, but the company says sales have not been affected. CEO Brian Nicol told employees it was the strongest Red Cup Day ever.
A successful holiday season will be key to the chain’s turnaround under Nicol. Starbucks ended nearly two consecutive years of same-store sales declines in its most recently reported quarter. The company says less than 1% of its stores have been affected by past strikes.
The New York City rally came after the company paid $38.9 million to resolve violations of the city’s Fair Labor Law. other major restaurant employers; chipotle pepperStarbucks said it has broken the law before and is “notorious” to get past this law.
The city’s Consumer and Worker Protection Department found that Starbucks had committed 500,000 violations of the law since 2021. Fair Labor Law requires regular weekly scheduling, requires schedules to be submitted at least 14 days in advance, and states that working hours cannot be reduced by more than 15% unless there is a valid business reason.
Speaking at Thursday’s rally, DCWP Chairwoman Vilda Vera Mayuga said the timing of the ongoing strike and record settlement was fortuitous.
“New York City laws remain complex, but our focus remains the same. We are committed to creating the best retail jobs and ensuring we comply with all laws,” Starbucks said in a statement.
The city’s current mayor, Eric Adams, and incoming mayor, Zoran Mamdani, rallied in support of the workers’ strike. Mamdani joined Sen. Bernie Sanders, D-Vt., earlier this week, along with other Brooklyn baristas.
Both Starbucks and the union hold the other party responsible for not reaching a deal and say they are ready to negotiate if the other side does reach an agreement. The two parties went to mediation in February, and hundreds of barista representatives voted against an economic stimulus package proposed by Starbucks in April.
The company announced it is investing $500 million to improve the employee experience as part of its “Return to Starbucks” strategy. That investment includes upgrading scheduling technology and adding baristas to the roster.
“As we have said, 99% of our 17,000 U.S. locations remain open and welcoming customers, including many locations where unions have publicly announced strikes but have not closed or reopened. Regardless of the union’s plans, we do not anticipate any significant disruptions. We are open to discussions when the union is ready to return to the bargaining table,” spokesperson Jaycee Anderson said in a statement.
