Starbucks to Raise Wages For All U.S. Employees

The megachain will be giving every employee's salary a 5 to 15 percent boost.

Starbucks Wage Raises
Photo: © Bloomberg via Getty Images

Coffee goliath Starbucks made waves this week when it announced that it would raise wages for all United States employees this October. The megachain, which employs roughly 150,000 workers in its 7,600 U.S. locations—you know, the ones on every corner of your neighborhood—will be giving every employee's salary a 5 to 15 percent boost. On top of the pay raise, the company will double the annual stock reward for hourly employees who have worked at Starbucks for at least two years.

According to Yahoo Finance, after a recent controversy involving almost 13,000 Starbucks employees who signed an online petition accusing the chain of "extreme" cutbacks in work hours, the chain hopes to boost company morale by upping their pay grade. Baristas and managers in their company-operated stores will all see a pay increase starting on October and continuing into the fall.

Chief Executive Howard Schultz announced this change in a letter to employees on Monday, and addressed the scheduling issue, saying, "You have my personal commitment that we will work with every partner to ensure you have the hours you need." However, he did not address the petition or the accusation that there had been labor cutbacks directly.

Jaime Prater, the Starbucks barista who created the petition was not satisfied with Schultz's letter, saying, "Howard Schultz did not acknowledge or validate the labor crisis in the stores. Until that is addressed, or simply acknowledged, my job isn't finished." While Starbucks sales have cooled off as of late, the chain has insisted that they have not reduced hours systematically nationwide.

However, the coffee company, which is known in the industry for its competitive wages and employee benefits, no doubt hopes the hundreds of millions it has designated for salary increases will quickly dispel any employee frustrations.

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