Starbucks plans to make a $1 billion investment in improving barista wages, offering additional training, and improving stores as more store locations join efforts to form a union.
The company said it would be raising its hourly wage to at least $15 per hour, up from $12, starting August 1, 2022. Meanwhile, all store employees hired on or before May 2, 2022, will get a 3% raise or $15 per hour, whichever is higher.
According to Yahoo Finance, the coffee giant is also making one-time investments in raising the base pay for store managers, assistant store managers, and shift managers that were hired on or before May 2, 2022. These increases will be applicable on top of the company’s planned fiscal year 2023 raises this fall.
Efforts to increase wages and offer training programs come as the company’s workers have been experiencing burnout due to stagnating wages and a surge in mobile orders. To better assess the on-ground situation, Schultz and other company executives have been visiting retail store locations to get a firsthand account from workers on how the pandemic has impacted their lives.
Based on employee feedback, Starbucks said it plans to increase sick time, deploy a financial stability toolkit benefit, and offer new tools to help baristas and other store employees refinance student loans.
Starbucks’ shares have been down nearly 35% since the start of the year.