The Starbucks symbol is spotted at a store in downtown Pittsburgh on March 14, 2017.
Jean J. Puskar/AP
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Jean J. Puskar/AP
The Starbucks symbol is spotted at a store in downtown Pittsburgh on March 14, 2017.
Jean J. Puskar/AP
Starbucks is increasing compensation and perks for most of its hourly employees in the US following an exceptional sales performance in its fiscal year.
However, on Monday, the company announced that unionized workers will not qualify for certain benefits, indicating ongoing tensions between the Seattle coffee chain and a labor union striving to organize its US stores.
As of 2021, at least 366 US Starbucks stores have voted in favor of establishing a union, as verified by the National Labor Relations Board. Nevertheless, Starbucks and the Workers United union have yet to reach a labor agreement at any of those locations. Starbucks operates 9,600 company-owned stores in the US.
On Monday, Starbucks revealed that it will raise wages — currently averaging $17.50 per hour — effective January 1. Both retail workers in unions and those not in unions with four years or less of experience will receive a salary increase of 3% or 4%, depending on their length of service.
The company stated that employees with five or more years of experience will qualify for a 5% raise, but since this is a new benefit, it must be negotiated with Workers United and therefore does not apply to unionized stores. Not applicable.
Workers United disputed this claim and announced their intention to file charges of unfair labor practices against Starbucks with the NLRB.
“Retaining profits from unionized shops is in violation of the law,” the union stated.
Starbucks also announced that it is reducing the waiting period before hourly employees can start earning vacation days from one year to 90 days. This benefit is exclusive to workers in non-unionized establishments.
The company also unveiled a new North American Barista Championship for employees in the US and Canada. However, this program will not be accessible to employees in unionized stores due to its involvement of cash rewards and travel, according to the company.
Starbucks’ action contradicts a ruling made by an administrative law judge at the NLRB in September, who deemed the company’s wage increase exclusively for non-unionized workers last fall to be illegal. Starbucks has appealed the decision, asserting that NLRB standards do not allow employers to unilaterally modify wages or benefits for unionized workers.
Source: www.npr.org
