Business

Starbucks to raise US workers' salaries

Starbucks barista Image copyright Getty Images

Coffee giant Starbucks has said it will raise wages for workers at all its US stores in October.

The pay rises will result in 5% to 15% increases for workers.

Starbucks faced criticism recently for cutting staff hours, and raising prices to meet profit expectations.

In a letter to employees Starbucks' chief executive, Howard Schultz said the company was looking to 'strike a balance' between profit and social responsibility.

Starbucks will increase base pay by at least 5%, though it may be more for workers in certain areas of the country.

The coffee chain is also doubling the amount of stock it distributes to hourly employees, who have worked for the company for at least two years.

The combined increases could result in 15% more income for some store employees.

"Striking the delicate balance between profit and a social conscience is a responsibility I take personally," Mr Schultz wrote.

The world's largest coffee chain employs 150,000 workers in its US stores.

Cutting hours

It has recently come under fire from employees who claim their hours have been cut.

More than 12,800 people signed an online petition alleging the coffee giant slashed hours.

The petition's creator claims that "morale is at the lowest I've seen in nearly 9 years of service ad that workers have found it hard to get more than 25 hours of work per week.

One factor is thought to be the growing number of mobile apps that allows customers to order and pay for drinks on their phones, meaning less sales assistants are needed.

In his letter, Mr Schultz addressed the scheduling concerns and said the company would work to ensure employees had the hours they needed to be eligible for certain benefits.

"You have my personal commitment that we will work with every partner to ensure you have the hours you need," he wrote.

Starbucks also faced customer anger last week when it raised the prices of certain beverage ahead of schedule. The company blamed a computer program for the increases coming into effect early.

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