Starbucks Announces Wage Raises and Other Big Changes After Being Accused Of ‘Killing Morale’

07.11.16 3 years ago
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Today, Starbucks CEO Howard Schultz posted a letter to the company’s Facebook page outlining a handful of major changes coming soon to the coffee giant. These changes will arrive just a couple of days after a petition accusing Starbucks of “killing morale” garnered enormous attention.

According to the petition, Starbucks made huge labor cuts as a result of disappointing revenue numbers. They’ve reduced the number of hours available to employees in order to save money and bi-annual raises and promotions only occur once a year now.

Today’s letter penned by “Howard” says that recent tragedies and violence in the United States have prompted the CEO to revisit the company’s relationship with its employees (a.k.a. partners), specifically to reconsider the company’s highly valued levels of trust. The letter goes on to outline several key developments.

First, beginning October 3, “all partners and store managers in U.S. company-operated stores will receive an increase in base pay of 5% or greater.” The percentage increase will be dependent on location and other market factors to ensure that Starbucks remains everyone’s go-to spot for those purple drinks people are losing their minds over. Starbucks will also add a “future annual enhancement to our Bean Stock program,” the company’s cleverly named stock compensation program. This improvement seeks to recognize contributions of tenured partners that exhibit consistent success. Hooray continuity!

But you know what they say, mo’ money, mo’ problems. Several people have commented on the Facebook post expressing concern. One commenter in particular was worried because the pay increases for some employees still put their rate under the living wage.

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