Starbucks Raises Pay by $3 for Some Workers

In a press release on Sunday, Starbucks (NASDAQ: SBUX) said it will compensate hourly employees who work their regular shifts by an extra $3 per hour from March 21 through April 19.

Giving workers options

The coffee company had previously said it would continue paying all workers whether they decided to come to work or not for the same time period.

That policy includes everyone, whether they choose to take off because of pre-existing health conditions, have already been exposed, or are just nervous to come to work.

"We believe no partner should be asked to choose between work and their health," CEO Kevin Johnson said.

Starbucks barista at work.

Image source: Starbucks.

Total shutdown

This past weekend, Starbucks closed all stores and converted to drive-through service only. Johnson noted that Saturday morning, the first morning after workers were notified that they could stay home and still get paid, workers showed up before dawn to stores all over the country.

He stated that the company believes it has an important role in serving its communities, and it's doing what it can to keep employees and customers safe while meeting consumer demand.

Taking care of its own

Starbucks has announced a slew of actions for its employees in the wake of the coronavirus COVID-19 pandemic, including:

  • Catastrophe pay for any worker impacted by the virus.
  • Therapy benefits for all employees who wish to use them.
  • A Caring Unites Partners (CUP) fund for workers who are having a hard time financially.
  • New partner discounts and redeploying workers while the stores undergo changes.
  • Expanding child care options.
  • Suspending work-related travel.

Starbucks stock has fallen 38% year to date as of this morning.

10 stocks we like better than Starbucks
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Starbucks wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of March 18, 2020


Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Starbucks. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.