Starbucks To Raise Minimum Hourly Wage To $15

American coffee chain Starbucks Corporation (SBUX) has decided to raise the minimum wage to $15 per hour in the wake of the nationwide employee crisis that many companies have been suffering from since the post-pandemic reopening.

The company said the hourly wages for the baristas will be $15 and rise all the way to $23 by next summer. “U.S. hourly partners will average nearly $17/ hr. with a new range of $15-$23 for baristas in Summer 2022,” Starbucks said. Currently, the company reportedly pays $14 per hour as the base payment.

The company has previously announced pay raise plans to retain old employees. Those who are with the company for more than 5 years will see a 10% hike in their pay checks and those with two years under their belts will see a 5% hike.

Such is the crisis, that the company has resorted to hiring new specialists and offering $200 for recommendations. The company is also restructuring its “Barista Basics” guide to provide more training beyond its designated 40 training outlets.

“Our founder Howard Schultz believed in the dignity of the human experience, in building a successful company, and that our success should always be shared,” said Rossann Williams, Starbucks executive vice president, president North America. “These new investments show the continued commitment we all have to create the best opportunities and experience for our partners.”

Among other companies, big-box retail chain Costco (COST) has also announced that it will increase the hourly pay of employees to $17. The company presently operates with 90% hourly workers. The company, however, has increased its minimum wage almost every year since 2018.

“These increases are part of Costco’s continuing efforts to ensure our hourly wages remain extremely competitive in the retail industry,” said Costco CEO Craig Jelinek.

Walmart (WMT), the lowest payer in the retail industry, also increased its hourly wage to $12 last month, while CVS (CVS) and Walgreens (WBA) have already made it $15.

The labor crisis has crippled the entire business canvas in the country as companies are finding it difficult to either find or retain employees. Experts had expected that around 500,000 jobs will be available in this month, but only 194,000 people joined offices.

Source: Read Full Article