Hourly workers at Starbucks are about to cash in on the company’s success.
After ending the year with record sales, Starbucks announced it is raising pay and benefits for most of its U.S. hourly workers. Unionized workers, the company said, won’t be eligible for some of the additional benefits.
At least 366 U.S. Starbucks stores have voted to unionize since 2021, according to the National Labor Relations Board. But Starbucks and the Workers United union have yet to reach a labor agreement at any of those stores, the Associated Press reported. Starbucks has 9,600 company-operated stores in the U.S.
Starbucks said Monday wages — which currently average $17.50 per hour — will increase beginning Jan. 1. Employees at both union and non-union stores who have worked four years or less will get raises of 3% or 4% depending on years of service, according to the AP report.
Employees who have worked five years or more will be eligible for a 5% increase, but since that’s a new benefit, it must be negotiated with Workers United and is therefore not available to unionized stores, the company said.
Workers United rejected that claim and said it will file unfair labor practice charges against Starbucks with the NLRB.
“Withholding benefits from unionized stores is against the law,” the union said, according to AP.
Starbucks said it is also shortening the time hourly employees must work before accruing vacation days from one year to 90 days. That benefit is also only available to workers at non-unionized stores.
The company also announced a new North American barista championship open to employees in the U.S. and Canada. The company said program also won’t be available to employees at unionized stores since it involves prize money and travel.
