United Starbucks workers union holds a rally in New York City during the strike

New York – Starbucks United workers marched outside the Empire State Building on Thursday as their indefinite strike entered its third week and no signs of an imminent resolution.

Adding to the crunch of shoppers and tourists, several hundred picketers gathered outside the iconic landmark, which is also the site of the luxury three-story Starbucks Reserve location and the company’s regional headquarters.

Members of other unions, such as the AFL-CIO and the Service Employees International Union, which is affiliated with the labor union, protested alongside baristas, chanting “No coffee, no contract” and “What’s so disgusting? Union busting” among speakers.

“Their fight is a real fight for all of us, for workers across the country, for companies like Starbucks, across the country where workers are fed up with the status quo, and they’re not going to take it anymore,” April Verret, president of SEIU, told CNBC.

Twelve demonstrators were arrested for blocking the entrance to the building.

Baristas went on strike on Starbucks Red Cup Day last month, seeking new proposals from the company that address their most important issues to finalize the contract. This includes improving work hours, increasing wages, and resolving hundreds of unfair labor practice charges against Starbucks.

Of the 145 locations participating in the strike, 55 remain closed, according to a company spokesperson.

The two parties did not enter into active negotiations to reach a contract after the collapse of the talks between them late last year. The strikes have not changed this fact yet.

While the strike has thrown uncertainty into Starbucks’ busy holiday season, the company said its sales have not been affected. CEO Brian Nicol told staff the Red Cup Day was the strongest in history.

A successful offseason will be key to the franchise’s turnaround under Nicol’s leadership. Starbucks broke a nearly two-year streak of declining same-store sales in its most recently reported quarter. The company said previous strikes affected less than 1% of its stores.

The New York City rally comes after the company paid $38.9 million to settle violations of the city’s fair workweek law. Other large restaurant owners, e.g Chipotlepreviously ran afoul of the law, which Starbucks said was “extremely difficult” to navigate.

The city’s Department of Consumer and Worker Protection found that Starbucks has committed half a million violations of the law since 2021. The Fair Workweek Ordinance requires regular scheduling from week to week, schedules are submitted 14 days in advance, and says work hours cannot be reduced by more than 15% without legitimate business reasons.

DCWP Commissioner Velda Vera Mayuga, who spoke at Thursday’s rally, said the timing of the record settlement with an ongoing strike was coincidental.

“While New York City’s laws remain unchanged and complex, our focus has not changed — we are committed to providing the best job in retail and ensuring our practices follow all laws,” Starbucks said in a statement.

Current Mayor Eric Adams and Mayor-elect Zahran Mamdani have rallied behind the striking workers. Mamdani joined Sen. Bernie Sanders, D-Vermont, along with baristas in Brooklyn earlier this week.

Both Starbucks and the union blamed the other for failing to reach a bargaining agreement and stressed that they were willing to talk when the other was. The two parties entered into mediation in February, and hundreds of barista delegates voted against the economic package proposed by Starbucks in April.

The company said it is investing $500 million to improve the employee experience as part of its “Back to Starbucks” strategy. This investment includes updating scheduling technology and adding more baristas to the rosters.

“As we’ve said, 99% of our 17,000 U.S. locations remain open and welcoming customers — including many unions that publicly announced they would strike but have never closed or reopened since. Regardless of the union’s plans, we do not anticipate any meaningful disruption. When the union is ready to return to the negotiating table, we are ready to talk,” union spokesman Jaci Anderson said in a statement.