President and Chief Operating Officer Kevin Johnson speaks during the Starbucks annual meeting of shareholders in Seattle, Washington, on March 22, 2017. (Stephen Brashear/Getty Images)
Starbucks is raising wages and offering a new round of benefits for its employees in a move the company’s CEO says was accelerated by President Donald Trump’s tax reforms.
Salaried partner employees will receive a round of raises in April this year, Starbucks CEO Kevin Johnson said Wednesday, according to Business Insider. The raise will be the second one for the year. Starbucks employees already received an annual wage hike in January.
The company is investing a total of $120 million to raise pay. The actual amounts of the raises vary by location, based on factors like local cost of living and local minimum wage.
Starbucks is also offering a new round of benefits meant to address a gap between corporate and in-store workers. The company received backlash last year over a paternal leave policy that benefited corporate workers but left out in-store employees.
Pedestrians cross a street in front of a Starbucks coffee house in Sydney Australia on May 28, 2014. (Peter Parks/AFP/Getty Images)
Starbucks baristas have previously complained about being paid too little, Business Insider reported.
“It’s a poverty wage,” California Starbucks shift supervisor Jaime Prater wrote in a blog post. “Living off of this income isn’t just implausible, it’s impossible. It’s not livable under any circumstances.”
“I don’t know how many times I’ve heard that we’re the most important part of the company,” another employee told Business Insider. “If we’re the most important part of the company and our connection is that important, [they shouldn’t be] paying as little as they can get away with paying.”
Starbucks is also allowing full-time and part-time workers to accrue paid sick leave and use it to care for ailing family members or for themselves in case of sickness.