Starbucks announces 3% raise for all retail workers in 2024

Starbucks announced Monday that it will increase wages for all domestic retail workers at the start of next year.

Employees at the nearly 17,000 U.S. Starbucks locations will see their $15-to-$24 per hour wages increase by at least 3% at the beginning of 2024, according to a report.

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Those who have been with the company for two to five years will receive a 4% increase, and people who have worked for over five years will earn a 5% raise, the report noted.

“Investing in our partners is what drives our success,” said Sara Trilling, executive vice president and president of Starbucks North America.

“It’s what makes us all partners. And an important way we do this is by investing in our partners’ journey, to bridge to a better future at Starbucks and beyond.”

Accompanying the increase will be a reduced minimum in the number of days a Starbucks employee will have to work to earn paid vacation benefits, according to the report.

Despite the 3% increase, Starbucks’s raise for employees appears to fail to meet the nation’s annual pace for inflation of 3.7%.

Calls for raises for Starbucks workers have been gaining traction since 2021, but not everyone is happy with Monday’s announcement.

Those with Starbucks Workers United are prime examples, according to the report.

“Once again, Starbucks is responding to our bargaining demands, but they’re implementing them in nonunion stores and denying these new benefits to workers in stores that are unionizing or already voted to join the union,” said Alex Yeager, an employee at an Albany location and a union member.

Yeager’s union has brought charges with the federal government, the employee added.

“This is against the law, and there are already several consolidated charges from the National Labor Relations Board for benefit packages Starbucks has denied union workers — such as credit card tipping — since we started our campaign,” Yeager said.

The union alleges that Starbucks illegally gave increases in pay to nonunion employees, and a labor board judge ruled in favor of that accusation in September, the report noted.

Starbucks rejects the notion.

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“All union-represented stores will receive annual wage increases consistent with our practice of providing yearly wage increases,” the coffee giant said. “Wherever we can quickly and broadly improve partner benefits and perks, we have and always will.”

“Starbucks has adhered to long-standing legal obligations, which require the company to differentiate between unionized or organizing partners and partners in all other stores.”