Amid 'Red Cup Rebellion' Strikes, Starbucks Reaches $35 Million Settlement With NYC Workers – CoffeeTalk

Starbucks has reached a $35 million settlement agreement to compensate over 15,000 workers in New York City, as declared by city officials. This settlement arose from claims that Starbucks denied employees stable schedules and arbitrarily reduced their hours. This announcement coincided with a strike by Starbucks’ union, which has been ongoing since last month at numerous locations across the United States. The striking workers are demanding improved hours and increased staffing, expressing dissatisfaction that, almost four years after voting to unionize at a store in Buffalo, Starbucks has not yet agreed on a contract. Currently, around 550 of Starbucks’ 10,000 company-owned stores are unionized.

In an effort to support the workers’ cause, Mayor-elect Zohran Mamdani and U.S. Senator Bernie Sanders visited the striking baristas outside a Starbucks in Brooklyn, condemning the company’s actions. Mamdani emphasized that the demands made by the workers are rooted in the pursuit of dignity rather than greed. Many strikers carried oversized mock-ups of Starbucks cups adorned with the union logo.

Despite the union’s claims, Starbucks spokesperson Jaci Anderson stated the company is open to negotiations when the union is ready. She further asserted that the company is committed to providing quality retail jobs, as over one million job applications are received annually. Striking baristas voiced concerns over chronic understaffing and complex online orders, which they argued hindered their ability to work effectively.

Amid ongoing labor challenges, Starbucks has been working to recover from a period of declining sales, recently reporting its first increase in comparable store sales in nearly two years. However, the company faced restructuring costs, store redesigns, and other challenges that have impacted its profitability.

As part of the settlement with New York’s Department of Consumer and Worker Protection, Starbucks will pay $3.4 million in civil penalties in addition to the worker compensation. Furthermore, the company has committed to adherence to the city’s Fair Workweek law. Employees affected by the irregular scheduling will receive $50 for each week they were employed from July 2021 through July 2024. Workers who faced scheduling violations post-July 2024 may also file complaints for potential compensation. The city initiated its investigation into Starbucks in 2022 after multiple complaints from workers, ultimately revealing that many employees lacked stable schedules, complicating their ability to manage personal commitments like childcare or education. The findings also indicated that the company limited workers’ opportunities to take on additional shifts, preventing them from moving out of part-time status even if they desired more hours.

Read More @ AP News