Starbucks Transitions To Weekly Pay For US Baristas, Touting New Bonus Program And Expanded Tipping Options Amid Ongoing Labor Disputes – CoffeeTalk

Starbucks has announced a transition to weekly pay for all its U.S. store employees and introduced a new bonus program along with expanded tipping options, reflecting ongoing issues in negotiations with the union representing some of its baristas. Starting in August 2024, baristas will receive weekly wages in response to their feedback. The new tipping system will allow tips to be accrued from credit and debit card transactions for mobile orders and in-store purchases, which previously were limited to cash transactions and certain app payments.

Additionally, a bonus structure will be implemented in July, enabling baristas and shift supervisors to earn up to an additional $1,200 per year based on meeting sales, operational, and customer service targets. Starbucks noted that the bonus and new tipping arrangements at unionized locations will be negotiated separately, as only about 5% of its U.S. stores are unionized.

Workers United, the union representing certain baristas, stated that these changes seem to be a direct response to their efforts toward improved compensation, expressing concerns that bonuses and tips are largely dependent on factors outside of baristas’ control. As negotiations for better staffing levels, predictable schedules, and higher pay continue, Starbucks maintains that baristas currently average about $30 an hour when pay and benefits are combined.

The company says it is also taking steps to close “underperforming” stores, a move that falls within CEO Brian Niccol’s broader turnaround strategy, which includes a substantial $500 million investment to enhance staffing during peak customer hours. Recent warnings from proxy advisory groups suggest that Starbucks may be overlooking critical financial and reputational risks associated with labor-related disputes.

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