Starbucks Increasing Workers Base Pay Beginning in October

Starbucks will increase the base pay of all its store managers and employees at company operated U.S. stores by at least 5%.

In an official letter set on Monday to its workers, Howard Schulz the CEO said the amount of the increase in pay would be determined by market and geographic factors.

Starbucks does not disclose any specifics on what the starting salaries are for their employees, saying that is determined on the basis of market-by-market.

Pay for jobs that are entry-level has become a popular political topic prior to the upcoming presidential election. Over this past weekend, the Democratic Party released a draft of its policy platform that included a call for a federal minimum wage of $15 that would be installed over time.

Donald Trump, the Republican presumptive presidential nominee favor keeping the minimum wage level up to individual states.

Tension over wages has been increasing for major corporations in the U.S. that employ many thousands of workers in entry level positions.

McDonald’s workers have picketed in the U.S. outside their restaurants asking for starting pay to be $15 per hour.

 

Macy’s last month struck a deal with some workers in which a union negotiated higher wages as well as healthcare that was more affordable.

As with other businesses, Starbucks is under big pressure to make its schedules for workers more reliable and predictable.

In June, an employee of Starbucks in southern California launched a new petition at Coworker.org that said the coffee chain was cutting the number of weekly hours to save costs on labor.

The petition said that employees are now finding it practically impossible to secure over 25 hours per week, and labor cuts had been hurting the employee’s morale while damaging the coffee chains customer service.

In the letter on Monday to workers, Schultz said Starbucks would work with its employees to make sure they had hours that they needed.

Schultz said Starbucks had committed to helping it workers meet their individual scheduling needs and especially when it has to do with be eligible for benefits.

Starbucks also announced that it was doubling its annual award for the company stock program for its hourly workers. The company, based in Seattle, is implementing as well the go shop employee coverage for healthcare starting later this month. This allows employees to pick from a number of different options.

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