Starbucks to Raise Wages for U.S. Workers
Starbucks announced it will raise the wages of all workers in its U.S. stores this October. The announcement comes after complaints from Starbucks’ employees about "extreme" cutbacks of work hours in its U.S. cafes. In addition to the wage increase, Starbucks will also double the annual stock reward to hourly employees who have worked in a store for at least two years. Starbucks said that, combined, the steps will result in a wage increase between 5 percent and 15 percent.
Total Retail's Take: While this is a step in the right direction for Starbucks, it seems this fight is far from over. In a statement, Jamie Prater, petition author and L.A. area barista wrote, "Howard Shultz didn't acknowledge or validate the labor crisis in the stores. Until that is addressed, or simply acknowledged, my job isn't finished." CNBC reports that more than 12,800 people, including many self-identified Starbucks workers, have signed an online petition alleging that staffing hour reductions are battering employee morale.