Wednesday, 12 December, 2018

Starbucks employees get a Trump bump to salary and benefits

Starbucks is expanding its paid sick leave and parental leave after tax cuts- and employee requests. Bloomberg Starbucks is expanding its paid sick leave and parental leave after tax cuts- and employee requests. Bloomberg
Nellie Chapman | 25 January, 2018, 02:50

For store employees, Starbucks expanded its parental leave policy to include all non-birth parents with up to six weeks of paid leave when welcoming a new child.

The tax plan features a corporate tax rate cut down to 21 percent from 35 percent.

Starbucks declined to say how it would distribute the raises.

"For more than 30 years, Starbucks has continued to challenge the status quo offering comprehensive employee compensation for our partners [employees]". Employees had signed online petitions calling for paid sick leave and other benefits, as well as raised questions about disparities in the parental leave benefit offered to store and non-store workers.

The new perk allows Starbucks employees, which the company calls "partners", to accrue one hour of paid sick leave for every 30 hours worked, extending a benefit that had previously only been offered to employees where state law required it. Workers may use the benefit in the case of an illness for themselves or for a family member, and the company said an employee working 25 hours a week could expect to accrue about five days of sick time over a year.

Unlike Wal-Mart, Starbucks isn't touting a new starting wage. The company said it already pays more than minimum wage in all of its markets.

The pay raises and expanded benefits will have a combined worth of more than $250 million, Reuters noted. All Starbucks retail partners will receive at least a $500 grant, store managers will each receive $2000 grant and plant and support center partner (non-retail) grants will vary depending on annualized salary or level.

The Seattle-based company will also give stock grants to everyone employed at the company's stores, plants and support centers as of January 1.

The company is also addressing complaints that some Starbucks policies favored corporate employees while ignoring baristas and other in-store workers. More details are expected during Thursday's first-quarter earnings call. According to Americans for Tax Reform, more than 2 million workers have already received, or are set to receive, cash bonuses as a direct result of Trump's tax reform. I am extremely proud to share that in the past four years Starbucks has made an investment of almost $800 million in employee compensation and benefits—a testament to our belief in our people and the role they play in creating the Starbucks Experience, ” added Johnson.