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Starbucks Workers United holds rally in NYC as strikes continue for a third week
CNBC· 2025-12-04 20:38
Core Viewpoint - Starbucks Workers United is currently in the third week of an open-ended strike, with no signs of resolution, highlighting ongoing labor disputes within the company [1][4]. Group 1: Strike Details - The strike began on Starbucks Red Cup Day, with baristas demanding improved hours, higher wages, and resolution of unfair labor practice charges [4]. - Out of 145 locations involved in the strike, 55 remain closed [4]. - The company has not engaged in active negotiations since talks fell apart late last year [5]. Group 2: Impact on Business - Despite the strike, Starbucks claims that its sales have not been affected, with CEO Brian Niccol stating that Red Cup Day was the strongest in the company's history [5]. - The company is focusing on a successful holiday season as part of its turnaround strategy, having recently ended a two-year streak of same-store sales declines [6]. - Past strikes have impacted less than 1% of Starbucks stores [6]. Group 3: Legal and Regulatory Context - Starbucks recently paid $38.9 million to settle violations of New York City's Fair Workweek Law, which the company described as "notoriously challenging" [7]. - The city's Department of Consumer and Worker Protection found Starbucks committed half a million violations of the Fair Workweek Law since 2021 [8]. - The law mandates regular scheduling and requires schedules to be provided 14 days in advance [8]. Group 4: Company Response and Future Plans - Starbucks is investing $500 million to improve employee experience as part of its "Back to Starbucks" strategy, which includes upgrading scheduling technology and increasing barista staffing [11]. - The company maintains that 99% of its 17,000 U.S. locations remain open and is prepared to negotiate when the union is ready [12].