Following a fiscal year with record sales, Starbucks declared it would enhance hourly wages and perks for the majority of its US staff.Thank you for reading this post, don't forget to subscribe!
On Monday, the company announced that the majority of U.S. hourly employees will experience at least a 3% gradual pay hike commencing on Jan. 1. Workers with two to five years of service will receive an increment of at least 4%, while employees with five years or more of service will get a boost of at least 4% but up to 5%, depending on the company.
Starbucks confirms it currently pays its hourly personnel an average of $17.50 per hour. Last week, the company publicized its expectation to double hourly earnings by the end of the 2025 fiscal year from the levels in 2020 via additional hours and improved remuneration.
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Starbucks’ ongoing dispute with the union
However, Starbucks clarified that these wage hikes and perks cannot be unilaterally implemented for unionized establishments due to persisting tensions between the company and the union.
As per the National Labor Relations Board, at least 366 Starbucks stores in the U.S. have voted to unionize by 2021, but Starbucks has yet to form a partnership with Workers United, the union representing workers in any of those stores. An agreement has not been reached.
Starbucks manages approximately 9,600 stores in the US, in addition to around 6,600 licensed stores.
Starbucks also disclosed that hourly employees at unionized stores will be entitled to only 90 days of paid leave starting in February, losing the benefit of a year-long vacation leave available only to non-union personnel.
Workers United shared in a statement with USA TODAY that the new perks are “a triumph for our campaign, and demonstrate that when workers join forces and voice their concerns, we can encourage companies to make such adjustments.” “Something they would never do if we didn’t stand up.”
However, the union also stated in the same release that depriving unionized stores of certain new advantages violates the law and constitutes a “blatant continuation” of an “illegal union-busting campaign,” pledging to file charges of unfair labor practices.
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