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Starbucks Raises Pay by $3 for Some Workers

By Jennifer Saibil - Mar 23, 2020 at 12:02PM

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The coffee chain is increasing hourly pay for employees who choose to show up.

In a press release on Sunday, Starbucks (SBUX 3.76%) 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.

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