Starbucks to Boost Worker Pay, Benefits Due to New Tax Bill
Starbucks announced today that it will use some of the savings from the new U.S. corporate tax cuts to give domestic employees pay raises, company stock and expanded benefits with a combined worth of more than $250 million for more than 150,000 employees. More specifically, Starbucks’ plan will include the following:
- In April, all eligible U.S. hourly and salaried employees will receive a second wage increase in addition to the annual increases that they have already received this fiscal year.
- On April 16, Starbucks will provide additional 2018 stock grants for all eligible full-time, part-time, hourly and salaried U.S. employees across stores, plants and support centers. All Starbucks retail employees will receive at least a $500 grant, store managers will each receive a $2,000 grant, and plant and support center partner (non-retail) grants will vary depending on annualized salary or level.
- A new employee and family sick time benefit will be available to all eligible employees, which will, among other things, allow partners to accrue paid sick time based on hours worked and then use them if they or a family member needs care. Starbucks also expanded its parental leave policy for retail workers, giving non-birth parents up to six weeks of paid leave when welcoming a new child.
These new offerings are in addition to the nearly $7 billion of capital that Starbucks will deploy to build and renovate stores, manufacturing plants and technology platforms in the U.S. over the next five years. Starbucks said it remains committed to providing opportunities to tens of thousands of Americans from disadvantaged backgrounds.
Total Retail's Take: With the announcement, the world's biggest coffee chain joins Wal-Mart, Apple, Comcast, American Airlines and other corporations in sharing their tax savings with employees. And this is extra good news for Starbucks employees, who are known for receiving more generous pay and benefits than other mass-market restaurants and retailers. In fact, Starbucks pays above the minimum wage in all states across the country. We will be keeping track of how the new tax bill affects other retailers in the weeks ahead, especially if retailers are using the savings to give back to their employees.