Starbucks wants to raise wages again – but not for unionized workers

The coffee chain said it would raise wages back in October. Starbucks will respect these obligations to employees even if they have voted to become a union, Schultz said during an analyst meeting on Tuesday.

But future wage increases are coming. And they will not necessarily apply to workers in unionized shops, he said.

“Today we are taking further steps to modernize our pay and benefits vision for our partners with further payroll investments … and in September we will share further initiatives we are planning for Starbucks partners,” he said.

The company will invest $ 200 million in payroll, equipment and training, among other benefits, on top of previously announced commitments, Schultz said. In total, Starbucks plans to spend around $ 1[ads1] billion this fiscal year on employees and improve the in-store customer experience.

Workers at business-run stores “will receive these salaries and benefits,” he said Starbucks (SBUX) can control their salary.
Starbucks stores across the country are voting for union.

But “we do not have the same freedom to make these improvements in places that have a union or where trade unionism is going on,” he said, adding that federal law “prohibits us from promising new wages and benefits in stores involved. in trade union organization. ”

The first company-run Starbucks store voted for the union in December. Since then, around 46 stores have voted for the union, with five voting against. In total, 237 company-owned stores have submitted applications to the National Labor Relations Board so far.

It is only a small part of the approximately 8,800 US business-owned locations. But Starbucks is eager to stop the flow.

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Schultz, who took on the role of CEO for the third time last month, acknowledged that workers are facing “enormous burdens” as demand grows. Sales in North American company-owned stores that are open for at least 13 months increased by 12% during the three months ended April 3. Revenues rose by 17% in the region during the quarter. The company’s shares jumped around 5% after hours on the results.

To help, the company offers more support in addition to the higher salary. Some examples: Starting next month, it will double the amount of training time for new baristas. In August, it will do the same for shift managers. It also launches an employee app to keep workers connected.

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