Starbucks to Raise Wages Up to 15%
July 11 2016 - 3:07PM
Dow Jones News
By Joshua Jamerson
Starbucks Corp. will give many employees in its U.S. stores a
raise this year, a move that comes as a tightening labor market has
put pressure on some U.S. companies to boost wages.
The Seattle-based coffee chain said that effective October 3,
employees in its company-operated stores will receive an increase
in base pay of 5% or more, depending on geographic region and
market factors.
Starbucks operates roughly 7,600 -- or 60% -- of its more than
12,700 stores in the U.S. The company doesn't disclose pay for its
store workers but a spokeswoman said employees are paid above
minimum wage, whatever it may be from region to region.
The company also said it would double the annual stock award for
employees who reach two years of continuous service with the
company. The combination of the changes will result in overall
compensation increases between 5% and 15%, the company said.
Starbucks spokeswoman Jaime Riley said the company's decision to
raise compensation was based on attracting and retaining good
employees and "listening to their feedback."
For the first time since the financial crisis, workers are
demanding raises and actually getting them, The Wall Street Journal
has reported. The number of workers quitting jobs has increased, a
sign they are confident they can get new jobs, and companies are
loath to lose good workers.
In April, Starbucks said profit increased 16% as it drew in more
mobile users in the U.S., but sales missed Wall Street
expectations. The company is expected to next report results on
July 21.
Starbucks stock edged down 0.5% to $56.24 in afternoon
trading.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
July 11, 2016 14:52 ET (18:52 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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