Thursday, December 2, 2021

Starbucks plans to raise wages to keep the hourly workforce in the US

Starbucks, the world’s largest coffee shop operator, is raising the average salary to nearly $ 17 an hour to attract and retain baristas amid persistent labor shortages in the United States.

The new wage rates will take effect next summer, with hourly rates slated to rise to $ 15-23 nationwide. The Seattle-based coffee chain currently pays an average of about $ 14 an hour to its U.S. hourly staff. Starbucks says it has spent more than $ 1 billion over the past two years on wage increases and benefits.

Restaurants of all sizes are grappling with persistent labor shortages in the United States. Competitors, including Chipotle Mexican Grill and Domino’s Pizza, said staff shortages are starting to take a toll on sales, with Chipotle also announcing a pay increase earlier this year. McDonald’s said Wednesday that due to labor shortages, service times at its restaurants are being cut.

Starbucks, which is due to report earnings on Thursday, has added jobs for hiring and training in the US and is using a $ 200 referral bonus to attract more help.

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The company is also testing an app that would make it easier for baristas to change jobs. The company is also trying to improve store layout and cold beverage brewing equipment to ease the workload on employees, Rossann Williams, president of Starbucks North America, told workers in a letter.

The pledge to increase wages followed the unionization in Buffalo, New York. Earlier this year, workers from three Starbucks offices applied to join Workers United, a member of the International Union of Service Workers.

In late September, Starbucks workers in Buffalo petitioned the National Labor Relations Board to allow the three stores to hold union elections. During a hearing at the NLRB, Starbucks ‘lawyers argued that there should be a workers’ vote across the region, as there are many similarities between its 20 seats.

The NBRB’s decision may come as early as mid-November. If the NLRB side with the company, the union will need the support of most workers in the Buffalo area to organize.

Nation World News Desk
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