Why Starbucks will pay $35M to over 15,000 NYC workers
What's the story
Starbucks has agreed to pay some $35 million to settle claims from over 15,000 New York City workers. The city officials announced the development yesterday, just hours before Mayor-elect Zohran Mamdani and US Senator Bernie Sanders joined striking baristas on a picket line. The settlement comes as a result of a broader union strike that started last month across dozens of locations across US.
Union demands
Workers demand better hours, increased staffing
The ongoing union strike by Starbucks workers is demanding better hours and increased staffing. The discontent has grown as Starbucks has failed to agree on a contract nearly four years after workers voted to unionize at a Buffalo store. Other locations followed suit, with about 550 of Starbucks's 10,000 company-owned stores now unionized. The coffee giant also operates some 7,000 licensed outlets at airports and grocery stores among other places.
Political support
Mamdani joins striking baristas
Mamdani, a democratic socialist who campaigned on promises to help working-class people, joined the crowd of strikers and supporters outside a Starbucks shop in Brooklyn. He said, "These are not demands of greed — these are demands of decency." Some workers carried giant mock-ups of Starbucks takeout cups with the union's logo instead of the coffee chain's insignia.
Settlement details
Starbucks's settlement includes civil penalties
As part of the settlement with NYC's Department of Consumer and Worker Protection, Starbucks will pay $3.4 million in civil penalties on top of the $35 million for workers. The firm has also agreed to comply with the city's Fair Workweek law going forward. Most affected employees who held hourly positions will get $50 for each week worked from July 2021 through July 2024, according to the department.