Starbucks Builds on Its Foundation of Industry-Leading Benefits for Retail Employees Announcing New Investments in Comprehens...
January 24 2018 - 6:00AM
Business Wire
- Company announces a new ‘Partner and
Family Sick Time’ benefit for all U.S. employees to launch this
year
- Announces second wage increase for all
U.S. hourly and salaried partners in addition to the annual
increases already granted this fiscal year
- Announces additional 2018 Stock Grant
with a one-year vest
- Highlights an Aon study indicating its
standing as the No. 1 retailer in comprehensive benefits for
part-time and full-time employees
- Reiterated commitment to create more
than 8,000 new retail jobs and 500 manufacturing jobs this year as
part of the company’s strategic growth plan
Building on a long history of providing relevant,
industry-leading benefits, Starbucks Coffee Company (NASDAQ: SBUX)
today announced a series of new partner (employee) offerings that
span across wage and benefits. These offerings will total more than
$250 million for more than 150,000 partners and are accelerated by
recent changes in the U.S. tax law. Further details on the impact
of these changes on our 2018 financial statements and earnings
guidance will be discussed during our January 25 earnings call.
With this investment, Starbucks announces a total compensation
approach that is best in class for part-time and full-time
employees across American retail.
According to a new benchmarking study Starbucks commissioned,
performed by Aon, a leading global professional services firm
providing a broad range of risk, retirement and health solutions,
the benefits awarded to partners who work 20 hours or more per week
at Starbucks rank above any other retailer in the study and are
three times more valuable than any other retailer in their
study.
“For more than 30 years, Starbucks has continued to challenge
the status quo offering comprehensive employee compensation for our
partners (employees). We were one of the first retailers to offer
full healthcare benefits to our partners – even those working
part-time – and more recently we revolutionized access to a
tuition-free four-year degree for all partners with the Starbucks
College Achievement Plan through our partnership with Arizona State
University,” said Kevin Johnson, ceo of Starbucks.
“Today, we are proud to announce additional investment in stock,
wages and a new Partner and Family Sick Time benefit that will
further enhance our industry-leading approach. Just as we have
always felt strongly that our partners are key to our business
success, we have also known offering a valuable, comprehensive
benefits package helps us retain our valuable partners. The value
of Starbucks benefit package [fully accessed] is unmatched by other
retailers and provides thousands of dollars above the value of
other companies compensation offerings. I am extremely proud to
share that in the past four years Starbucks has made an investment
of nearly $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.
Starbucks provided the following details regarding these
investment decisions:
- Starbucks pays above the minimum wage
in all states across the country. In April, all eligible U.S.
hourly and salaried partners will receive a second wage increase in
addition to the annual increases that they have already received
this fiscal year. This will include an investment of approximately
$120 million in wage increases that will be allocated based on
regional cost of living and laws that vary from state to
state.
- On April 16, we will provide an
additional 2018 stock grant for all eligible full-time, part-time,
hourly and salaried U.S. partners across our stores, plants and
support centers, who have been active as of Jan. 1, 2018. All
Starbucks retail partners will receive at least a $500 grant, store
managers will each receive a $2000 grant and plant and support
center partner (non-retail) grants will vary depending on
annualized salary or level. This investment alone is valued at more
than $100 million.
- A new Partner and Family Sick Time
benefit will be available to all eligible U.S. partners, which will
allow partners to accrue paid sick time based on hours worked and
then use them if they or a family member needs care. When this
benefit goes into effect this year, Sick Time will accrue at a rate
of one hour for every 30 hours worked, thus a partner working 23
hours a week can expect to accrue approximately five days of sick
time benefit over the course of one year.
- Starbucks has also reaffirmed their
commitment to create more than 8,000 new part-time and full-time
retail jobs and an additional 500 manufacturing jobs in its
Augusta, Georgia soluble coffee plant.
- For store partners, Starbucks has also
expanded their parental leave policy to include all non-birth
parents with up to 6 weeks of paid leave when welcoming a new
child.
These new offerings are in addition to the nearly $7 billion of
capital that Starbucks will deploy to build and renovate stores,
manufacturing plants and technology platforms in the U.S. over the
next five years. Starbucks remains committed to providing
opportunities to tens of thousands of Americans from disadvantaged
backgrounds.
Starbucks also remains committed in continuing to offer
industry-leading comprehensive health care benefits and
marketplace, disability and life insurance benefits, a 401K savings
plan benefit and continue the Starbucks College Achievement Plan,
which is a free tuition benefit offered to Starbucks partners
together with Arizona State University.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee.
Today, with more than 23,000 stores around the globe, Starbucks is
the premier roaster and retailer of specialty coffee in the world.
Through our unwavering commitment to excellence and our guiding
principles, we bring the unique Starbucks Experience to life for
every customer through every cup. To share in the experience,
please visit our stores or online at news.starbucks.com
and Starbucks.com.
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Starbucks Coffee Company206-318-7100press@starbucks.com
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