Starbucks, the famous US coffee chain stole a march on its competitors in announcing on Friday 25 September that it would pay the Government’s target “National Living Wage” (c.f. article No. 9180) to all its employees and not just to those over 25 (as specified by the Government). Since this summer’s announcement of a rise in minimum wages, companies in the UK are either fearful of losing competitiveness or want to go even further by riding the new wave of change and are offering even better pay conditions in an effort to stem rising turnover rates.
Kris Engskov, president of Starbucks in Europe, the Middle East and Africa stated, “We believe in equal pay for equal work”, where baristas are currently paid £6.77 and hour (€9.20). From April 2016, the National Living Wage as promised in July 2015 by Chancellor George Osborne (c.f. article No. 9180) will be £7.20 an hour (€9.77) as compared with £6.50 (€8.80) currently and £6.70 (€9.00) when rates traditionally go up in October.
If Starbucks has chosen to go further than the Government’s...
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