U.S.: Starbucks excluding unionized employees from its wage hike plan

The editorial team is offering you free access to this article
Start your free 1-month trial to access all our content

On 03 May, Starbucks CEO Howard Schultz announced wage increases for all U.S. employees, except those who have joined, or are in the process of joining a trade union. During a Wall Street analyst presentation, the founder of the coffee chain, which employs 240,000 in the United States, made the announcement as part of a one billion dollar investment plan in salaries, employees, and improving customer store experience. The CEO promised to raise the minimum hourly wage to $15 an hour by this summer. Employees who have been with the company for between 2 and 5 years will receive a 5% increase, and those with more than 5 career years will see their pay rise by 7%. In addition, the training time for baristas will be doubled, sick leave benefits will be increased and customers will be able to include a tip when paying by bank card. These various measures, however, do not affect the 46 cafés whose employees have voted to join the Starbucks Workers United union, nor the more than 100 other cafés that are scheduled to vote in the coming weeks on whether or not to join the SEIU services union subsidiary (c.f. article No.12850). Howard Schultz says that any raises must be part of the ongoing collective bargaining with the union and as such cannot be unilaterally applied. Starbucks Workers United representatives believe that management is trying to intimidate employees before they vote, and have sent a letter to the federal NLRB (National Labor Relations Board) stating that this unequal treatment of all employees violates the 1935 Labor Relations Act.

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
UK: government promises human rights due diligence bill
The news. On 4 November, the government promised, through Business Secretary Jonathan Reynolds before the House of Lords, the statutory introduction of human rights due diligence in the UK. It...
5 November 2026
UK: new protection measures against “fire and rehire” postponed to March 2027 
On 22 October, the UK government announced the postponement of the coming into force of measures aimed at restricting "fire and rehire" and "redundancy and re-employment", provided for under the...
5 November 2026
EU: several social texts promised for 2027
The news. On 4 November, the European Commission presented its work programme for 2027. While the focus is once again on simplification, several social texts have been announced. The European...
France: a bill by the end of the year to transpose the European directive on platform workers
The qualified experts appointed by the French government in the framework of transposing the Directive on Platform Workers submitted their report on 2 November. It paves the way for a bill by the...
4 November 2026
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
Ireland: minimum wage increase of 5,6% from 1 January 2027
The info. The Irish government has included a minimum wage increase of 79 cents in its Budget 2027, in line with recommendations from the Low Pay Commission. The rate will rise from €14.15...
2
Denmark: government prepares implementation of pay transparency in March 2027
The news. On 8 October, the Danish executive submitted the bill transposing the European Pay Transparency Directive to the national Parliament. The text stems from an agreement between trade...
3
China: draft bill to strengthen platform workers’ rights
On 8 October, the Chinese government published a draft bill open for consultation aimed at providing minimum guarantees to non-employee platform workers in terms of pay and working conditions. The...
23 October 2026
4
Is a global wage freeze at Volkswagen possible?
The existence of an option to implement a global wage freeze until 2030 has been confirmed by the management of the German group Volkswagen, which nevertheless provides no details and refers to...
20 October 2026
5
France: paid leave for victims of sexual and domestic violence finally adopted
The news. On 13 October, the French National Assembly unanimously approved, among voting members, the “comprehensive bill” aimed at protecting victims of sexual and gender-based...
6
Spain: metal industry employers cut sick pay top-ups
To curb absenteeism, Spanish social partners in the metal sector are introducing new clauses into regional collective agreements to reduce the top-up payments made by employers during sick leave...
2 November 2026