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Food Starbucks is giving baristas a raise and increasing minimum wage to $12 in US stores in October

03:20  04 august  2021
03:20  04 august  2021 Source:   businessinsider.com

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Starbucks is raising hourly wages for its baristas as the restaurant industry braces for a higher minimum wage when President-elect Joe Biden takes office. Starting Dec. The coffee chain is known for giving its workers more generous benefits and pay compared with other retailers and national restaurant chains. It already pays above minimum wage . Business Insider first reported the memo, written by Rossann Williams, president of company-operated Starbucks locations in U . S . and Canada.

Starbucks is giving all US employees a pay raise of at least 10%, according to an internal memo viewed by Business Insider. "This announcement is the next phase of its commitment to ensuring the well-being of partners with one of the most significant investments to hourly pay in the U . S . in the However, some employees say that pay bumps are not enough, as they demand a minimum wage across the US . President-elect Joe Biden has said it is necessary to raise the federal minimum wage to . Visit Business Insider's homepage for more stories. Starbucks is giving workers raises .

a person wearing a hat: Dan R. Krauss / Stringer / Getty Images © Provided by Business Insider Dan R. Krauss / Stringer / Getty Images
  • Starbucks is raising wages for baristas and increasing the minimum wage.
  • Starbucks moved up the timeline for raises from January to October.
  • Chipotle and McDonald's recently raised wages to attract workers in the labor shortage.
  • See more stories on Insider's business page.

Starbucks will give hourly workers a raise this October, and raise the minimum wage to at least $12 in all stores.

Employees hired before July 2021 will receive a 5% raise, with tenured partners getting a 6% raise. Starbucks will also raise the minimum wage in all markets to at least $12, and up to or above $15 in some markets, a Starbucks spokesperson told Insider.

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Read more: Starbucks is giving every barista in the US a raise , but some workers demand more as minimum wage looms. 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 . retail partners are currently at or above /hour and we continue on our path to ensure all U . S . partners will be making at or above /hour

Starbucks executives have told employees that they will raise pay for all baristas , cafe attendants and shift supervisors, including new hires, before the end of the year. A memo to employees first reported by Business Insider detailed the changes to Starbucks ' pay scale; baristas , supervisors and other " We have a multi-year aspiration to make more meaningful investments in pay as it continues to rebuild and grow the business." The coffee chain has long pursued a public campaign of progressive business policies in the workplace and was already paying in- store employees above minimum wage in many

Starbucks previously gave US workers raises in December 2020, with an increase of at least 10% for all baristas, supervisors, and cafe attendants, Kate Taylor reported for Insider. The coffee chain also bumped starting wages by 5% and increased the amount that Starbucks pays over the local minimum wage in all markets. More than half of Starbucks workers already make $15 or more, Starbucks confirmed.

At the time, Rossann Williams, the president of Starbucks' company-owned US stores called the move "one of the most substantial investments in pay in our company's history."

Read more: Strikes, mass quitting, and rage: We talked to workers who were fed up with terrible conditions and are fighting back

The upcoming October raises are accelerated plans originally intended for January 2022. They're part of a plan to reach a minimum wage of $15 for all workers in the next two to three years, the spokesperson said.

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The company will raise wages by at least 10% for baristas , shift supervisors and cafe attendants that were hired on or before Sept. 14. The increase will go into effect on Dec. 14. Starting pay rates will rise 5% “so our store managers can continue to attract and retain new talent,” Starbucks Executive Vice Early in the pandemic, Starbucks expanded emergency pay for store staff impacted by the coronavirus and extended it through May 31 for those diagnosed or directly exposed to Covid-19. It also provided temporary childcare and distance-learning support, as well as hardship grants for workers in financial

Starbucks confirmed to FOX Business Wednesday that it will give pay raises to all of its in- store employees in the United States . According to an internal memo, all baristas , supervisers and cafe attendants will receive an increase of at least 10%. Starbucks ' partners with three years of continued service will also receive a pay bump of at least 11%. In addition, all employee start rates will see an increase of at least 5%. The premium Starbucks pays above minimum wage in every market will also see an increase .

Workers have left the retail industry this year to escape difficult customers and low pay. Dozens of customer-facing retail workers have told Insider about quitting their jobs over fatigue, harassment from customers, and fear of contracting COVID-19.

Difficulty staffing stores has led fast-food chains to raise wages for workers. In May, Chipotle announced it was increasing hourly wages, bringing the average pay up to about $15 an hour. That's $2 more an hour than the chain's current average of $13 an hour, Chipotle told Insider.

Increasing wages helped Chipotle deal with the labor shortage. The chain told Insider it received over 24,000 applications for 20,000 positions a week after it announced higher wages. McDonald's also raised wages by about 10% in company-owned stores, and the chain says it's nearly back to being fully staffed, Juliana Kaplan reported for Insider.

Other chains have held hiring events, added extra benefits, and given out bonuses for interviewing.

Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.

Read the original article on Business Insider

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