Starbucks reveals plans for $15 minimum wage across America, following workers' demands for higher pay
Starbucksis aiming to raise its minimum pay for all workers across the US to $15 per hour over the next three years, CEO Kevin Johnson told The Wall Street Journal.
- Johnson wrote in an open letter that more than 30% of US workers currently make $15 or more per hour, and that Starbucks is on the path to have every worker make that much in "the coming two to three years."
- The coffee giant is raising all US workers' pay by at least 10% in 2020.
- Some employees previously told Business Insider this year's pay raise was not enough, as workers petitioned for a $15 minimum starting wage.
Starbucks is aiming for a $15
CEO Kevin Johnson told The Wall Street Journal that, over the next three years, he wants to raise wages for all US store workers to at least $15 per hour.
Starbucks is in the process of giving all employees at least 10% raises, with pay hikes rolling out across the US by Dec. 14. In an internal memo viewed by Business Insider, Rossann Williams, the president of Starbucks' company-owned US stores, said that the company is "making one of the most substantial investments in pay in our company's history."
On Wednesday, Johnson released a public letter he sent to Congress, calling for "immediate bipartisan action to pass new COVID relief legislation." In the letter, Johnson highlights financial investments that Starbucks made during the pandemic and the recent wage hike.
"With these investments, more than 30 percent of our U.S.
Starbucks workers have been pushing for a $15 minimum wage, with nearly 10,000 people signing a CoWorker.org petition on the topic. While the company has made significant investments in its workforce in 2020, some employees feel they deserve greater compensation during the pandemic.
"If we're labeled as essential workers, we should get paid essential," Jay Josef, who has worked at Starbucks for nine years, told Business Insider. "That's why [we want] a $15 minimum wage increase."
Higher pay is an expensive proposition for Starbucks. Stifel analyst Chris O'Cull said in an October report that Starbucks, along with Chipotle and Shake Shack, are among the three restaurant stocks that would be most impacted if a federal $15 minimum wage were to pass.
Unlike many major chains, Starbucks is not franchised. As a result, higher wages directly impact the company's bottom line. Roughly half of the chain's US locations, or 9,600 stores, are owned by the company.
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