Starbucks Corporation (NASDAQ:NASDAQ) decided to increase the wages of all workers in company-operated stores in the United States on October 3, according to the company’s CEO Howard Schultz.
In a letter to employees on Monday, Mr. Schultz said earnings the trust of employees has been the foundational principles of Starbucks. According to him, “Striking the delicate balance between profit and a social conscience is a responsibility I take personally.”
Starbucks employees to receive between 5% and 15% wage increase
Mr. Schultz said the company’s partners and store managers “will receive an increase in base pay by 5% or greater.” According to him, Starbucks will determine the increase in their compensation based on geographic and market factors.
Starbucks is increasing the salaries of its employees to ensure that it remains a retail employer of choice in all the markets where it operates. The company also decided to double the annual bean stock award for its employees that reach two years of continuous services with the company.
“The combination of these changes will result in compensation increases between 5% and 15%. These changes will begin to go into effect as early as October, and we remain committed to doing more each year to invest in our partners as part of our long-range, strategic plan,” said Mr. Schultz.
Starbucks allegedly cutting working hours
There was an online petition accusing Starbucks of making “extreme” reductions in work hours at its cafes in the United States. Over 12,800 people, many identified themselves as Starbucks workers alleged that the reduction of staffing hours is negatively affecting their morale and hurting services to customers.
Some of the the company’s employees commented in the petition that they were more getting enough working hours to make ends meet or to afford Starbucks benefits such as college tuition reimbursement and healthcare.
The world’s largest coffee chain operator recently introduced a technology that enables customers to order and pay for beverages and other products through their smartphones and other devices. The technology allows Starbucks to save time and labor.
Mr. Schultz also explained in his letter that some of the working hours of its employees change particularly during summer because of the change in customer routines.
According to him, the company’s field leaders are committed to making every effort to help employees meet their specific scheduling needs especially when it comes to ensuring their benefits eligibility.
“Please know that you have my personal commitment that we will work with every partner to ensure you have the hours you need,” said Mr. Schultz.