-
Company announces a new ‘Partner and Family Sick Time’ benefit for
all U.S. employees to launch this year
-
Announces second wage increase for all U.S. hourly and salaried
partners in addition to the annual increases already granted this
fiscal year
-
Announces additional 2018 Stock Grant with a one-year vest
-
Highlights an Aon study indicating its standing as the No. 1
retailer in comprehensive benefits for part-time and full-time
employees
-
Reiterated commitment to create more than 8,000 new retail jobs and
500 manufacturing jobs this year as part of the company’s strategic
growth plan
SEATTLE SEATTLE--(BUSINESS WIRE)--
Building on a long history of providing relevant, industry-leading
benefits, Starbucks Coffee Company (NASDAQ: SBUX) today announced a
series of new partner (employee) offerings that span across wage and
benefits. These offerings will total more than $250 million for more
than 150,000 partners and are accelerated by recent changes in the U.S.
tax law. Further details on the impact of these changes on our 2018
financial statements and earnings guidance will be discussed during our
January 25 earnings call.
With this investment, Starbucks announces a total compensation approach
that is best in class for part-time and full-time employees across
American retail.
According to a new benchmarking study Starbucks commissioned, performed
by Aon, a leading global professional services firm providing a broad
range of risk, retirement and health solutions, the benefits awarded to
partners who work 20 hours or more per week at Starbucks rank above any
other retailer in the study and are three times more valuable than any
other retailer in their study.
“For more than 30 years, Starbucks has continued to challenge the status
quo offering comprehensive employee compensation for our partners
(employees). We were one of the first retailers to offer full healthcare
benefits to our partners – even those working part-time – and more
recently we revolutionized access to a tuition-free four-year degree for
all partners with the Starbucks College Achievement Plan through our
partnership with Arizona State University,” said Kevin Johnson, ceo of
Starbucks.
“Today, we are proud to announce additional investment in stock, wages
and a new Partner and Family Sick Time benefit that will further enhance
our industry-leading approach. Just as we have always felt strongly that
our partners are key to our business success, we have also known
offering a valuable, comprehensive benefits package helps us retain our
valuable partners. The value of Starbucks benefit package [fully
accessed] is unmatched by other retailers and provides thousands of
dollars above the value of other companies compensation offerings. I am
extremely proud to share that in the past four years Starbucks has made
an investment of nearly $800 million in employee compensation and
benefits – a testament to our belief in our people and the role they
play in creating the Starbucks Experience,” added Johnson.
Starbucks provided the following details regarding these investment
decisions:
-
Starbucks pays above the minimum wage in all states across the
country. In April, all eligible U.S. hourly and salaried partners will
receive a second wage increase in addition to the annual increases
that they have already received this fiscal year. This will include an
investment of approximately $120 million in wage increases that will
be allocated based on regional cost of living and laws that vary from
state to state.
-
On April 16, we will provide an additional 2018 stock grant for all
eligible full-time, part-time, hourly and salaried U.S. partners
across our stores, plants and support centers, who have been active as
of Jan. 1, 2018. All Starbucks retail partners will receive at least a
$500 grant, store managers will each receive a $2000 grant and plant
and support center partner (non-retail) grants will vary depending on
annualized salary or level. This investment alone is valued at more
than $100 million.
-
A new Partner and Family Sick Time benefit will be available to all
eligible U.S. partners, which will allow partners to accrue paid sick
time based on hours worked and then use them if they or a family
member needs care. When this benefit goes into effect this year, Sick
Time will accrue at a rate of one hour for every 30 hours worked, thus
a partner working 23 hours a week can expect to accrue approximately
five days of sick time benefit over the course of one year.
-
Starbucks has also reaffirmed their commitment to create more than
8,000 new part-time and full-time retail jobs and an additional 500
manufacturing jobs in its Augusta, Georgia soluble coffee plant.
-
For store partners, Starbucks has also expanded their parental leave
policy to include all non-birth parents with up to 6 weeks of paid
leave when welcoming a new child.
These new offerings are in addition to the nearly $7 billion of capital
that Starbucks will deploy to build and renovate stores, manufacturing
plants and technology platforms in the U.S. over the next five years.
Starbucks remains committed to providing opportunities to tens of
thousands of Americans from disadvantaged backgrounds.
Starbucks also remains committed in continuing to offer industry-leading
comprehensive health care benefits and marketplace, disability and life
insurance benefits, a 401K savings plan benefit and continue the
Starbucks College Achievement Plan, which is a free tuition benefit
offered to Starbucks partners together with Arizona State University.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting high-quality arabica coffee. Today,
with more than 23,000 stores around the globe, Starbucks is the premier
roaster and retailer of specialty coffee in the world. Through our
unwavering commitment to excellence and our guiding principles, we bring
the unique Starbucks Experience to life for every customer through every
cup. To share in the experience, please visit our stores or online at news.starbucks.com
and Starbucks.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180124005433/en/
Source: Starbucks Coffee Company