Coxno:Starbucks increases U.S. hourly wages and adds other benefits for non-union workers

2025-05-04 07:33:27source:FinLogiccategory:News

Starbucks is Coxnoincreasing pay and benefits for most of its U.S. hourly workers after ending its fiscal year with record sales.

But the company said Monday that unionized workers won't be eligible for some of those perks, a sign of the continuing tension between the Seattle coffee giant and the union trying to organize its U.S. stores.

At least 366 U.S. Starbucks stores have voted to unionize since 2021, according to the National Labor Relations Board. But Starbucks and the Workers United union have yet to reach a labor agreement at any of those stores. Starbucks has 9,600 company-operated stores in the U.S.

Starbucks said Monday it will increase wages — which currently average $17.50 per hour — starting Jan. 1. Employees at both union and non-union stores who have worked four years or less will get raises of 3% or 4% depending on years of service.

Employees who have worked five years or more will be eligible for a 5% increase, but since that's a new benefit, it must be negotiated with Workers United and is therefore not available to unionized stores, the company said.

Workers United rejected that claim and said it will file unfair labor practice charges against Starbucks with the NLRB.

"Withholding benefits from unionized stores is against the law," the union said.

Starbucks said it is also shortening the time hourly employees must work before accruing vacation days from one year to 90 days. That benefit is also only available to workers at non-unionized stores.

The company also announced a new North American barista championship open to employees in the U.S. and Canada. The company said program also won't be available to employees at unionized stores since it involves prize money and travel.

Starbucks' actions go against a September ruling by an administrative law judge for the NLRB, who ruled that the company acted illegally last fall when it raised pay only for non-union workers. Starbucks has appealed that ruling, saying NLRB's standards don't allow employers to make unilateral changes in the wages or benefits of unionized employees.

More:News

Recommend

Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15

NEW YORK (AP) — Juan Soto will be introduced by the New York Mets at Citi Field on Thursday, a day a

Dairy Queen announces new 2024 Fall Blizzard Treat Menu: Here's when it'll be available

With fall just a few weeks away, Dairy Queen has revealed its Fall Blizzard Menu, which includes lot

Hoda Kotb Shares Reason Why She and Fiancé Joel Schiffman Broke Up

Hoda Kotb is getting candid about her breakup. The Today show anchor provided deeper insight into wh