BEACON TRANSCRIPT – Starbucks will increase pay for all employees and store managers in the United States coffee shops, by 5 percent or more. CEO Howard Schultz wrote a letter to workers on Monday. He said that the specific amount of the raise, due to happen in October, will be determined by market factors and geographic factors.
Starbucks doesn’t disclose starting pay for workers, instead, says it’s determined by the market. The company has about 7,600 company-run stores in the country. Salaries for entry level jobs are trending as a political topic, just before the presidential election. In time, the minimum wage is set to rise to $15 per hour.
Tensions have been rising in major US corporations, as pay for entry-level work is considered too low. Workers at McDonald’s Corp. have protested across the country for a rise in pay that will make salaries worth $15 an hour.
As with other companies, Starbucks is under pressure to make schedules for their workers more reliable and predictable. Last month, a Starbucks worker from Southern California started a petition saying that the coffee chain was shortening work hours to save on costs.
The petition showed that employees find it very hard to secure more than 25 hours a week. These labor cuts were said to be hurting morale and customer service. Jaime Prater, the man who made the petition, spoke to CEO Schultz over the phone and was told that the company wanted to make things right.
In the letter to workers on Monday, Schultz said that Starbucks would help workers to secure the hours they need. The coffee chain doubled its annual award for the stock program for hourly workers who have acquired two years of continuous employment. The company also committed to boosting the health care coverage for workers, starting next week.
Starbucks is a coffee shop success story. The company is raising pay faster than the national average, increasing by over 4% compared to last June.
Starbucks also announced that the dress code for baristas would be more relaxed. In a move to appeal to the millennial generation, Starbucks will allow some tattoos to show, more options for hair color and leave more room for self-expression.
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