Starbucks to boost US workers' base pay by at least 5 percent
Starbucks will raise the wages of all its workers in its US stores, as an online petition with nearly 13,000 signatures alleges the world鈥檚 largest coffee chain is in the midst of the most in its 45-year history.
The chain will increase the base pay for all its workers and store managers at its company-operated stores in the United States聽聽starting Oct. 3, chief executive Howard Schultz said in a letter published on the company鈥檚 website Monday. Starbucks will also double the Bean Stock, or annual stock reward, to hourly employees who have worked at company-operated stores for at least two years.
Combined, these perks will raise the wages of聽about 150,000 workers in about 7,600 company-operated cafes in the US聽by 5 to 15 percent.
Starbucks, for the most part, has been above the fray of the union-led 鈥淔ight for $15鈥� movement to raise the minimum wage. Yet, Mr. Schultz鈥檚 announcement is another example of an international chain鈥檚 response to discontent among its lowest-paid workers.
鈥淪triking the delicate balance between profit and a social conscience is a responsibility I take personally,鈥� wrote Schultz, in the letter. 鈥淥ver the years, we have viewed our total compensation approach as the best way to create long-term opportunity for partners. We believe strongly in this philosophy but also recognize we must do more to help partners take advantage of all the company has to offer.鈥�
Starbucks has a reputation for offering better pay and benefits than many other chains. But its sales growth has cooled.
Schultz鈥檚 announcement also comes amid allegations the chain reduced its hours, lowering employee morale and degrading service.
鈥淲e understand that businesses have to be profitable to survive. We get it,鈥� writes the petitioner鈥檚 author and a Starbucks barista in Los Angeles, Jaime Prater, on coworker.org. 鈥淲hat鈥檚 happening is some of the most extreme labor cuts in Starbucks history.鈥�
Commenters on the online petition said they weren鈥檛 receiving enough hours to get by or to afford the chain鈥檚 benefits, including healthcare and college tuition reimbursement.聽
Schultz gave employees his 鈥減ersonal commitment that we will work with every partner to ensure you have the hours you need.鈥�
Meanwhile, the company has repeatedly said there is no nationwide reduction in labor hours, and Schultz, in his letter, did not directly reference the petition or employee concerns about labor hours.
Other chains, including McDonald鈥檚 and Burger King, have been the targets of the 鈥淔ight for $15鈥� movement, now going into its fourth year. Protests have been organized across the world, driving the minimum wage up in cities and states across the country. Now, it has its sights set on raising the federal minimum wage to $15.
Even though Starbucks typically pays its baristas and shift supervisors well under $15 per hour, Schultz told Seattle NPR affiliate KPLU that raising the minimum wage to $15聽, although he expressed concern that it would hurt small businesses.
Proponents of raising wages and hours for baristas suggest that doing so would improve the customer experience.
鈥淲e want Starbucks to ease up, give us room to breathe, to have the proper kind of staff to ultimately, give our amazing and wonderful customers the service they deserve,鈥� writes Mr. Prater, the barista.
This report contains material from Reuters.
