Workers at Cherry Street Coffee House shut down all four cafe locations Friday morning to put pressure on their boss, Ali Ghambari, to meet their demands for improved working conditions and better pay.
Ghambari pushed his workers to their breaking point in July when he testified at City Hall, apparently in favor of Council Member Joy Hollingsworth’s bill to retain a “tip crediting” scheme (or “tip punishment” scheme) that allows businesses that employ fewer than 500 people to pay workers below the standard minimum wage as long as customer tips make up the difference. The system, part of a decade-old compromise forged during the historic fight for $15, was due to sunset in January, but Ghambari and other small business owners claimed that paying workers more would force them to close stores.
Now, workers have shifted the paradigm. They won’t let him keep his stores open without the wage increase, and then some.
A group of employees called the Cherry Street Workers United shut down the Capitol Hill location last month when several workers quit and walked out on Aug 17. They also sent Ghambari a list of demands to repair their damaged relationship. They alleged routine sexual harassment in the stores and demanded that the company adopt a formal anti-harassment policy; they also demanded schedules three weeks in advance, a permanent raise, and notice for major hour reductions and store closures. But Ghambari did not impress his staff with his response. On Thursday, workers met with Ghambari again. They made some progress, workers say, but they declined to provide specifics until Ghambari puts it in writing.
To keep the pressure on him, Cherry Street Coffee workers didn’t show up to the Belltown and Pioneer Square locations this morning. Instead, the workers, joined by former Council Member Kshama Sawant’s Workers Strike Back, picketed outside of the Westlake location, blocking customers for about an hour before security finally taped up a “Closed Early” sign.
Private security just put up this “Closed Early” sign. The workers have officially closed down ALL FOUR Cherry Street locations. Their boss said he would have to shut down his stores if he had to pay minimum wage. Now, workers shut him down anyway. pic.twitter.com/YLGgPC0Hn1
— Hannah Krieg (@hannahkrieg) September 6, 2024
Michael Pablo, a worker at the Pioneer Square location, told The Stranger that it felt so good to close down the fourth and final store this morning that he could cry. He and his fellow workers hope to meet with Ghambari to continue negotiations soon, this time with their boss more aware of their collective power as workers.
Ghambari did not respond to my request for comment.
Sawant said she hopes that this action will inspire other workers to shut down their bosses’ profit machines, as profit is the only language they speak.
Ghambari was not the only boss to speak in favor of the subminimum wage. As many locals know thanks to a semi-viral Reddit post, bosses from Elliot Bay Brewing, Atoma, Lassi & Spice, Veraci Pizza, The Confectional, Moshi Moshi, Anthony’s, Delancey, Dino’s, Rachel’s Bagels and Burritos, Terra Plata, and Queen Anne Beer Hall all came to City Hall to testify.
Workers already scored a victory when Hollingsworth retracted her bill just a week after introducing it. She decided to continue workshopping the policy behind the scenes. UFCW 3000 Secretary-Treasurer Joe Mizrahi says the City will convene a meeting with both business and labor representatives next week.
“My perspective is this is not a conversation about tip credit because we have no interest in extending that,” Mizrahi said. “It’s a discussion about other ways to support small businesses that don’t involve paying workers less.”
Hollingsworth did not respond to my request for comment, but chances are the slow-going council will not propose a policy before budget negotiations kick off at the end of the month. With a January deadline, the council will probably take up the issue in the final weeks between budget negotiations and their winter break–if at all.
If workers want to protect the minimum wage, Sawant said they’ll need to keep the momentum going. Workers Strike Back, Restaurant Workers United, and Cherry Street Workers United will host an action conference Sept 15 at 2 pm to discuss next steps for Cherry Street Coffee House workers and to defend the minimum wage for all Seattle workers.
The solution is simple, hire and train new employees!
It cannot be stated often enough: the tip credit exists in Seattle’s minimum wage because Sawant put it there, and she put it there to get her name on the law. Washington State’s minimum wage has no tip credit, and SeaTac’s minimum wage, enacted by voters there in 2013, also has no tip credit. There was no reason for Seattle to accept a tip credit, unless one believes Seattle’s voters were far less liberal than voters in SeaTac. These workers should blame Sawant for their wage issues.
@1 A business that does not pay its workers a livable wage does not deserve to exist.
@2 A better solution, Guillotines for exploitive bosses!
@4 labor can only be paid what it’s worth and in the case of many unskilled jobs they are not worth a “living wage” in Seattle. The net result will be business closing and loss of jobs.
This situation can only end in two ways. The workers receive concessions and increased pay but some of their colleagues will be let go or the business will close. In either case there will be less jobs so I’m not sure what the win really is here.
@5: Economic circumstances may change, so we can’t know for sure. Even though Seattle wound up with the weakest of the state’s local minimum wages (Thanks, Kshama!!), voters both in Seattle and statewide have been very clear, outlawing poverty wages every time they acted. Supporting failed businesses (and failed business models) with poverty wages does not fit Seattle’s plans, and the City Council should respect that, and end Sawant’s Sellout of Workers to the bosses, by closing this ‘tip credit’ loophole.
Somehow, I doubt Seattle will soon find itself without coffeeshops.
@6 I’m not sure I’d characterize what these employees are earning as poverty wages. At min wage they are earning over $40K a year to pour coffee. If they are assuming tips will stay static as prices adjust they may be in for a shock. Many consumers are already exhausted from the endless tip requests and will end up tipping less or not at all since they now know the employees are not dependent on tips. At most I think this ends up being a small rise in overall pay for the employees that are left. I don’t doubt Seattle will still have coffee stands but what you will see is more Starbucks type chains who can afford to subsidize the higher costs / lower profits of Seattle with locations that have higher profit margins. Small chains like this one who only operate in Seattle will struggle. Most of the progressives on here seem to think that is a good thing so I won’t belabor that point but continue to point out that this will be the result. There just isn’t endless profit margins in these businesses to pay low skilled labor a “living wage”.
@7 how do you figure 40K a year?
These are not full time jobs. Assuming they work an average 30 hours, and if they were making the full min wage of even a larger company (500+) your math makes no sense
19.97 x 30 x 52 is just barely over 31K before taxes.
The low end of the avg median rent for a 1BD apt in Seattle is about 2000 a month. That ends up being 77% of their income before tax.
@8 if you’re going to compare this to a living wage you have to calculate it as full time. Assuming you are going to make a living wage working part time is delusional. If you do that they are making 41k. I won’t argue that’s still not enough to afford an apt alone but it’s not poverty either.
@9 Living wage covering basic necessities for seattle-Tacoma area is estimated to be ~$60k per year for a single adult w/o child
https://livingwage.mit.edu/metros/42660
@8, @10: Anyone who thinks they’ll have their own apartment in Seattle whilst working a minimum-wage job really needs a serious lesson on Life In The Big City. (When I moved to Seattle, I already had an engineering degree, and still lived in a rooming house for my first half-decade.)
@10 exactly. Thinking you deserve to make that working a low skilled job is not realistic much less thinking you should get that working part time.
Robots to the rescue! Beep boop!
@9 even at 41K, rent of an average apt is still going to consume close to 60% of that income, and that’s still before taxes.
@tenny nobody asked you nor do they want your discourse because you are just overall a bad person. The lifeblood of a city are service workers.
@15 so you get a roommate. In what city on earth can you have your own place working a min wage job? My point is Seattle is expensive and min wage will never be a “living wage” however our min wage is hardly poverty either.
So let me try and understand. At this place you make less than minimum wage + tips with a side of sexual harassment thrown in to pull espresso shots.
Serious question: Dick’s. Drive In pays a min of 21/hr, free employer paid healthcare, a matching 401k plan and free food while you are on shift.
Why wouldn’t any rational person do that instead?
@15: “even at 41K, rent of an average apt is still going to consume close to 60% of that income, and that’s still before taxes.”
Yep. That’s Life In The Big City. I’ve never had a minimum-wage job, and even with an engineering degree, I still could not afford a place of my own for years. Thanks for helping to make my point.
Brilliant move, Comrade Kshama.
Cherry Street Coffee owner says Capitol Hill cafe closed for good after tangle with Sawant over minimum wage tip credit
https://www.capitolhillseattle.com/2024/09/cherry-street-coffee-owner-says-capitol-hill-cafe-closed-for-good-after-tangle-with-sawant-over-minimum-wage-tip-credit/
Any engineer who can’t afford their own place might want to reconsider their career choice. Or take a long look at their persuasion skills. But since this is tenorsa, just assume every wage negotiation is him/her/it explaining that K. Sawant is to blame for everything, ever and all those against zionist ethnic cleansing are Hamas stooges.
…and ‘I’ve never had a minimum wage job’ might not play well outside of the maga audiences. Same line from Trump regarding Harris working at McDo’s. Minimum wage jobs are great for building character, and you are a good example.
If we allow people to be underpaid, don’t we end up paying for their health care and other social services they can’t pay for via taxes? Business’ have had years to get ready for this and will survive, as always.