Tax cuts give Starbucks workers a break
Starbucks is giving its US workers pay rises and stock grants this year, citing recent changes to the tax law.
All employees will soon be able to earn paid sick time off, and the company’s parental leave benefits will include all non-birth parents.
Starbucks Corp said Wednesday that the changes affect about 150,000 full-time, part-time, hourly and salaried employees, most of whom work as baristas or shop managers.
The company said the changes will cost more than US$250 million.
Starbucks is the latest US firm to boost pay or benefits due to the passage of the Republican tax
Other companies including Walmart are also passing on the tax benefits.
plan, which slashed the corporate tax rate from 35 per cent to 21 per cent.
Walmart, for example, raised its starting hourly salary from US$9 (NZ$12.21) to US$11 earlier this month, and also expanded its parental leave benefits.
Beyond changes to the tax law, other factors are affecting retail working conditions.
Larger employers are having a hard time attracting and keeping workers because of historically low unemployment rates. Job seekers can be pickier about where they work, and companies are trying to make themselves more attractive.
Target had also announced in October that it would raise its starting hourly wage to US$11, and said it would raise wages to US$15 by the end of 2020.
Starbuck’s new benefits apply to workers at more than 8,200 company-owned stores but not at the 5,700 licensed shops like those found inside supermarkets.
The company will give at least $500 worth of Starbucks stock in April to employees at stores, support centres or bean roasting plants.
Store managers will get $2,000 in stock grants.
All workers will also be able to earn paid sick time off based on the hours they worked.