The coffee chain said it would raise wages in October. Starbucks will honor those commitments to employees even if they vote for union, Schultz said during an interview with an analyst on Tuesday.
But future wage increases are imminent. And they will not necessarily apply to union shop workers, he said.
“Today we are taking further steps to modernize our pay vision and benefits for our partners with additional payroll investments … and in September we will share additional initiatives we are planning for Starbucks partners,” he said.
The company will invest $ 200 million in salaries, equipment and training, among other benefits, in addition to pre-announced commitments, Schultz said. Overall, Starbucks plans to spend about $ 1 billion this fiscal year on employees and improve the in-store customer experience.
Workers in the company’s stores “will receive these salaries and benefits improvements,” he said, as Starbucks (SBUX) can control their pay.
But “we do not have the same freedom to make these improvements in places where there is a union or where there is a union,” he said, adding that federal law forbids us to promise new wages and benefits in shops involved in the union. ”
Starbucks, the company’s first store, voted in favor of unionization in December. Since then, about 46 stores have voted in favor of unionization, with five voting against. In total, 237 company stores have filed petitions with the National Labor Relations Council so far.
This is only a small part of approximately 8,800 locations owned by American companies. But Starbucks is eager to stop the flow.
Schultz, who took over for the third time last month as CEO, acknowledged that workers are facing “enormous tensions” as demand grows. Sales in North American company stores, which have been open for at least 13 months, jumped 12% in the three months ending April 3. Revenue jumped 17% in the region during the quarter. Shares of the company jumped about 5% after hours of results.
To help, the company offers more support in addition to this higher pay. Some examples: From next month, this will double the training time for new baristas. In August, he will do the same for shift supervisors. It also launched an employee app to keep employees connected.
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