Starbucks (corporate) issues statement

The following Starbucks’ corporate statement was issued today to 101.7/WGOG NEWS on the news that workers at its Clemson restaurant (at 123/Tiger Blvd. & College Avenue) are petitioning for a vote to form a union:

“As a company, we believe that our relationship as partners is core to the culture and experiences we create in our stores. To that end, wherever we can quickly and broadly improve partner benefits and perks, our history demonstrates we have. That’s why we’ve made more than $1.4 billion in investments over the past year to improve the experience in our stores and for our partners.

 

Notably, we continue to invest in innovative new benefits, the deployment of new time-saving technologies and new store formats. These efforts to reinvent our stores and further enhance our industry leading partner benefits are designed to foster opportunity for our partners and evolve our business in ways that allow our partners to connect with customers in new, personal and engaging ways.

 

Counter to claims made by Workers United, Starbucks has consistently offered hourly partners the best benefits and perks in the industry, including:

 

• An average wage of $17.50 per hour, and a wage range for hourly partners between $15 and $23 per hour (or a total compensation, with benefits, of approximately $27 per hour). Importantly, no partner in the U.S. makes below $15 per hour. Our wage floor for U.S. partners is $15 per hour (referenced in the 2023 Proxy on pg. 81).

• Comprehensive medical, dental and vision coverage options for eligible partners and their families—including industry-leading gender-affirming care benefits, developed in partnership with WPATH.
• 100% tuition reimbursement for a four-year bachelor’s degree through the Starbucks College Achievement Program.

• Paid parental leave, family expansion reimbursement programs and increased paid partner and family sick-time accrual rates.
• Reimbursement for required DACA renewal fees.
• Medical travel reimbursement for partners and family members who are required to travel for access to abortion or gender-affirming care.
• Support for mental health and well-being, with up to 20 free therapy sessions each year for partners and eligible family members.
• Equity ownership in the company through annual Bean Stock grants, which have awarded more than $2 billion in additional earnings to partners, to-date. That’s why our employees are called partners—we each have an ownership stake in the future success of our business.

• 401(k) matching up to the first 5% of eligible pay contributed by partners each pay period.
• Resources to help our partners better manage student loan debt and a new incentivized savings programs to help partners develop financial security.

As a result, more than 97% of our partners at our more than 9,300 U.S. company-owned stores have chosen to maintain a direct employment relationship with Starbucks. We recognize that a subset of partners feel differently — and we respect their right to organize and to engage in lawful union activities without fear of reprisal or retaliation.

 

We recognize that a subset of partners feel differently, and we respect their right to organize and to engage in lawful union activities without fear of reprisal or retaliation. As a next step, we welcome the opportunity for partners at our Tiger Boulevard and College Ave. store to vote in a neutral, secret ballot election conducted by the NLRB — which allows all partners to make their own informed decision regarding union representation.

 

In advance of the union representation election, our focus will be to ensure that they can trust the process is fair and their voice is heard. We are committed to following all protocols outlined by the NLRB in advance of a union representation election — including compliance with all notice posting and voting list requirements. To support adherence to company policies and compliance with the complex patchwork of employment and labor law, Starbucks launched a robust management training program and established a dedicated labor relations team for real-time counsel.

 

To be clear, though, we respect the right of all partners to make their own decisions about union representation, and we are committed to engaging in good faith collective bargaining for each store where a union has been appropriately certified.

 

Lastly, in response to the allegations made in the letter published today by Workers United… Partner work schedules are published on a regular, rolling basis three-weeks in advance and are built based on recorded partner availability and the unique operational needs of each store. To provide additional schedule flexibility for our partners, we also provide partners the ability to view and pick-up additional shifts at their home store and other stores within their district.

 

As we work to more consistently deliver the Starbucks experience, we’ve also launched several new tools and resources to provide our local retail leaders with the information they need to better allocate partner resources to meet the needs of individual stores. Our retail leaders have the flexibility to build and adjust staffing schedules to reflect the unique and dynamic needs of each store. By combining historical data and more robust forecasting, we’re working balance store resources and expected customer demand—ensuring partners are on the floor when they’re needed most. We also implemented adjustments to our Availability and Scheduling policy in Oct. 2022, in direct response to partner feedback garnered through partner surveys, collaboration sessions and direct input, that they wanted more consistency and stability in their schedules.

 

Of note, will also share an excerpt from CEO Laxman Narasimhan’s Q2 fiscal 2023 earnings remarks countering claims that we continue to reduce partner hours:

 

“The investments we made – in our partners, stores and technology – are already producing a return, whether it’s through productivity gains or partner satisfaction. We are pleased with the multi-faceted progress to date. For example: Barista turnover reduced by over 9% from a high in March Q2 fiscal year 2022, leading to fewer new hires per store. We have been able to increase the average hours per Barista per week by 4% year- over-year, a metric we know is one of many meaningful inputs in achieving the desired compensation of our partners. Clearly, partner scheduling is a real opportunity, and we are laser focused on it.”