Starbucks hands out 150,000 raises to its workers

Coffee company have been accused of providing poor working conditions for employees

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Sharecast News | 11 Jul, 2016

Updated : 16:56

Starbucks is taking swift action to quash criticism from certain employees regarding working conditions, by giving out 150,000 pay rises to those working in its US stores.

The raises will be of at least 5% each for its store employees and managers, it was revealed on Monday. There are a number of other ideas on the table to improve conditions, such as an increase of hours worked.

The move comes fresh after an accusation from a coffeeshop employee that a reduction in working hours for staff was at the point of "gross undermployment". The company also recently revealed plans to increase prices instore by as much as 30 cents.

Founder and CEO of the company Howard Schultz said in a letter to employees that he is making the decision for the good of those that work for Starbucks.

"Every day, I strive to build the kind of company that my father never had a chance to work for, one that not only cares for its people but gives them opportunities to be their best selves," Schultz wrote.

From October 3 all employees in U.S. company-operated stores will receive an increase in base pay of 5% or greater. Starbucks says the range of increase will be determined by geographic and market factors.

Schultz didn't commit to granting workers a particular number of hours per week

Schultz didn't commit to granting workers a particular number of hours per week, but he did suggest Starbucks will look to improve the number of hours employees get each week.

"While we have made progress over the years in providing more stability and consistency in scheduling, our field leaders are committed to make every effort to help you meet your specific scheduling needs especially when it comes to ensuring your benefits eligibility going forward," said Schultz.

"To that end, please know that you have my personal commitment that we will work with every partner to ensure you have the hours you need."

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