Starbucks settlement: Coffee chain to pay $35 mn to 15,000 NYC workers; Mamdani and others join striking baristas

Starbucks, one of the world’s biggest coffee chains, has finally agreed to hand over about $35 million to more than 15,000 New York City workers after claims that shifts were slashed without warning and schedules kept in constant flux. The announcement landed on Monday, just hours before Mayor-elect Zohran Mamdani and US Senator Bernie Sanders walked onto a Brooklyn picket line to visit protesting baristas.

The settlement comes in the middle of a union-led strike that began last month across dozens of stores nationwide. Workers argued that their demands are simple: better staffing and more stable hours. But frustration only grew as almost four years passed since baristas at a Buffalo branch first came together to strike against the organisation, and a contract has still not materialised. Since then, unionisation has spread to around 550 of Starbucks’ 10,000 company-owned outlets. A further 7,000 stores operate under licence in airports, supermarkets and other venues.




Both the company and union workers dispute the scale of the strike’s impact. Even so, Mamdani, Sanders and a group of state and city officials added political firepower to the movement on Monday, joining scores of baristas and supporters outside a Brooklyn Starbucks.

“These are not demands of greed — these are demands of decency,” Mamdani said. Some workers held oversized cut-outs of Starbucks takeaway cups, swapping the company’s branding with the union’s. Sanders said, “Starbucks has refused to sit down and negotiate a fair contract.”

Strikers described a workplace buckling under pressure, understaffed shifts, unpredictable scheduling and online orders so complex that the list of ingredients sometimes stretches beyond the height of the cup. “It is the company's issue to give us the labor amount to schedule partners fairly, and they are not scheduling us fairly, no matter how much money we are making them,” said Gabriel Pierre, 26, a shift supervisor at a suburban Bellmore shop.

Meanwhile, the Seattle-based chain has been trying to regain its financial footing. Cost-conscious customers have been pressing pause on premium coffees, questioning whether they still justify the price. Starbucks recently recorded its first rise in same-store sales in nearly two years, but restructuring costs, store redesigns and other changes dragged on profits in the July–September quarter.

The settlement announced by New York City’s Department of Consumer and Worker Protection further requires Starbucks to pay $3.4 million in civil penalties in addition to the $35 million earmarked for workers. Additionally, the company agreed to follow the city’s Fair Workweek law from here on.

Starbucks said that it is committed to responsible operations and compliance with local laws, while acknowledging the difficulty of the rules in question. “This is notoriously challenging to manage," spokesperson Jaci Anderson said.

Most hourly employees affected will receive $50 for each week worked between July 2021 and July 2024, the department confirmed. Staff who experienced violations after that window can still seek compensation by filing a complaint.

The deal also guarantees reinstatement opportunities for employees laid off during recent store closures in the city.

For many baristas, the fight continues. “I sure hope that it gives Starbucks an awakening,” said Kaari Harsila, 21, a shift supervisor from Brooklyn who joined the picket line.

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