Starbucks is planning significant wage increases for all of its employees.
Following recent accusations from employees that Starbucks Corp. has drastically cut employee hours in the U.S., the company has announced that it will soon be raising wages for all of its workers.
According to a new report from Yahoo Finance, the coffee chain has stated that, beginning October 3, it will be raising the wages of its store managers at company-operated stores by a minimum of 5%. The company has also announced that it will be raising the wages for all of its employees by 5%-15%.
Additionally, the company has stated that it will be doubling the annual stock reward to its hourly employees, as long as they have been with the company for at least two years, Yahoo Finance reported.
This new wage increase seems to be in response to a recent online petition, which has been signed by more than 12,800 people, which alleges that Starbucks’ recent hour reductions are harmful to employee morale and customer service. The alleged hour cuts have likely resulted from the recent introduction of potentially labor-saving technology that allows customers use mobile devices to order and pay for drinks and other products, Yahoo Finance reported.
Employees also reportedly commented on the petition that the hour reductions made it difficult for them to make ends meet, and impossible for them to afford Starbucks benefits, such as healthcare and college tuition reimbursement.
According to the report from Yahoo Finance, Starbucks CEO Howard Schultz said that the company would address scheduling concerns.
The new wage increase will affect 150,000 workers in roughly 7,600 U.S. company-operated cafes, Yahoo Finance said.