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Starbucks is handing out pay hikes and new benefits. But some are only for non-union workers

today 11/07/2023
Starbucks employees who have not joined a union will receive higher pay and new benefits, according to an announcement made by the company. However, a National Labor Relations Board judge previously ruled that similar actions by Starbucks violated labor laws. The company has appealed the decision. This issue of which workers receive certain perks and benefits has been a contentious point in the ongoing battle between Starbucks and union organizers. So far, nearly 360 stores have voted in favor of unionization, while about 70 have voted against it. The new benefits, including wage increases, were unveiled by Starbucks on Monday. Non-union employees will be eligible for increased vacation time, but pay raises will vary. Workers with 2-5 years of experience will receive a minimum 4% raise, while those with 5 or more years will receive a minimum 5% raise. Union members will receive the wage increases they negotiated last year, but no new pay raises or vacation benefits will be offered to unionized workers unless they are part of collective bargaining negotiations. However, all employees, regardless of union status, will benefit from improved scheduling practices. Starbucks has argued that legally it cannot offer certain benefits to unionized employees without bargaining with the union first, but a National Labor Relations Board judge ruled against the company, stating that Starbucks violated labor laws by granting benefits only to non-union employees. Starbucks has appealed the decision and maintains its position. Both Starbucks and union organizers have accused each other of delaying negotiations, and complaints have been filed with NLRB regional offices. The union claims that its efforts have led to some positive changes, such as the addition of credit-card tipping at non-union locations. Locations that have successfully unionized have faced opposition from Starbucks, with some cases being deemed illegal by the NLRB. Starbucks recently discussed its plans for growth and increasing wages at an investor event. The company aims to double hourly pay by the end of fiscal year 2025 and has been implementing price hikes in recent years to support this goal. Starbucks reported a successful year, with total company revenue increasing by 11% in the fourth quarter and reaching a record $9.4 billion.
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