Starbucks announces $1 billion investment in US employees as unionization efforts spread

0


Starbucks interim CEO Howard Schultz announced a $1 billion investment in U.S. partners (what the company calls it employees) and stores for fiscal year 2022 during the company’s Q2 earnings call.

The investment — which will go toward increased pay, additional training, and store innovation — comes as more than 240 Starbucks stores in 32 states have filed for union elections as of Monday.

The announcement includes an update to the company’s previously announced wage increase for all U.S. hourly earners to at least $15 per an hour (up from $12), going into effect on August 1. All partners hired on or before May 2 will get either a 3% raise or $15/hour, whichever is higher.

Beyond baristas, Starbucks will also up pay for store managers, assistant store managers and shift managers hired on or before May 2. These investments are one-time investments in base pay in addition to planned fiscal year 2023 raises this fall.

The company also announced plans to reward length of service. Partners with between 2-5 years of service will receive at least a 5% increase or move to 5% above the market start rate, whichever is higher. Partners with 5+ years of service will receive at least a 7% increase or move to 10% above the market start rate, whichever is higher.

NEW YORK, NEW YORK - APRIL 14: People hold signs while protesting in front of Starbucks on April 14, 2022 in New York City. Activists gathered to protest Starbucks' CEO Howard Schultz anti-unionization efforts and demand the reinstatement of workers fired for trying to unionize. (Photo by Michael M. Santiago/Getty Images)

NEW YORK, NEW YORK – APRIL 14: People hold signs while protesting in front of Starbucks on April 14, 2022 in New York City. Activists gathered to protest Starbucks’ CEO Howard Schultz anti-unionization efforts and demand the reinstatement of workers fired for trying to unionize. (Photo by Michael M. Santiago/Getty Images)

On top of the pay bump, the company plans to double the amount of training time for baristas and store managers. It’s also bringing back its Coffee Master and Black Apron training programs this summer. Partners who complete the Coffee Mastery program will then have the chance to be selected to participate in the Leadership in Origin program at Hacienda Alsacia, a Starbucks coffee farm in Costa Rica.

In August, the company will launch a new partner app to stay connected and better communicate with all U.S. employees.

Since his return to CEO on April 4, Schultz and other executives have been visiting retail and roasting locations around the country to hear firsthand how employees’ lives have been impacted over the last two years.

As the result of employee feedback, the company plans to provide opportunities to increase sick time, implement a new “financial stability toolkit benefit,” and introduce new tools to help partners refinance student loans.

Priorities for upcoming investments include the introduction of credit card/debit card tipping by late 2022, equipment and tech upgrades, plus a new employee recognition program/career mobility program.

Shares of Starbucks are down roughly more than 35% compared to a year ago.

Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn.





Source link

Leave A Reply

Your email address will not be published.