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 Linda Thomas
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Linda is the morning news anchor and features reporter for KIRO Radio. This is her local news blog, with an emphasis on social media, technology, Northwest companies, education, parenting, and anything else that grabs her attention.

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Starbucks.JPG
Starbucks made $1.4 Billion this year and paid its CEO Howard Schultz $16.1 Million, according to a 2012 report from the National Employment Law Project. (Linda Thomas photo)

Starbucks is among big chains paying workers the least

December 2, 2012 @ 12:53 pm (Updated: 3:16 pm - 12/3/12 )

Walmart workers aren't the only employees who say they are making low-wages while their companies post profits and CEOs cash bonus checks.

The National Employment Law Project analyzed large companies whose employees are making minimum wage, or barely above. Overall, their 2012 report found minimum wage today is worth 30 percent less than it was in 1968.

Most of the 12 largest employers studied are national restaurant chains, such as McDonald's, Burger King, and Starbucks. The others are national retailers, such as Wal-Mart, Target, and Sears.

Starbucks ranks seventh on their list. With a workforce of 176,533 and 12,903 stores in the U.S., Starbucks had revenue of $13.3 billion and net income of $1.4 billion. CEO Howard Schultz earned $16.1 million in compensation.

Some employees are covered by the Starbucks Union, which is part of the Industrial Workers of the World.

The Starbucks Union claims employees' pay has "remained stagnant with smaller merit increases, our health insurance premiums have doubled, our benefits have been cut, and we have been saddled with more labor-intensive tasks like upselling VIA and other products."

Starbucks disagrees with the assessment and considers itself to be a "progressive" employer. Starbucks is one of the few large companies that offer health benefits to part-time workers.

The majority of Starbucks baristas earn from $7.50 to $10.00 per hour.

By LINDA THOMAS

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Comments (8)


  • Add A Comment

  • Ted Bundi wrote...
    1973, working as a cook
    December 3, 2012 6:22 am
    I made 12.75 per hour, one week paid vacation, paid medical, and a pension the employer paid. I could make my house payment of 325.00. Today, they only pay 10.00 per hour and that's it. It's no wonder why this industry has a tough time finding locals to do the work. Menu pricing has been adjusted to cover food increases. Owners have a take it or leave it attitude.
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  • Forrest wrote...
    Although Starbucks may offer part time employees medical coverage, most of those large minimum wage corporations don't.
    December 3, 2012 6:44 am
    The tax payers then have to pick up the tab for emergency room use that those minimum wage workers are forced to use. It's another form of corporate welfare that the Republicans wholeheartedly support.
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  • Concerned US Citizen wrote...
    Job Skills?
    December 3, 2012 7:43 am
    It must take real dedication and thousands of hours cracking the books to get the job skills it takes to pour coffee or make hambergers. Is it society's fault that most don't do the things it takes to get the skills corporations are willing to pay for such as engineering, medical fields such as biology, genetics, ect. that take REAL WORK and study to become competent. Hope you all had fun partying in high school and college so you can now spend the rest of your lives pouring coffee.
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  • anotherfencewalker wrote...
    Linda...hold on a minute..
    December 3, 2012 7:45 am
    The Barista's make a bit more than just the wage amounts you're referring to. Walmart employees don't take home tip money. The turnover at your average Starbucks is relatively low compared to other store front businesses. Barista tip dollars, especially at the independent stands ain't bad at all. Starbucks has a benefit package too and its not just "free coffee". Howards compensation should never be brought into it unless S'bucks is heading downhill, closing locations and laying it's employees of. Even during the peak of the recession, Starbucks financial hit was lightweight. The last figure I saw was about 650 locations closed up out of the 13000 locations in the U.S. Over 20000 world wide.
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  • awhitehorse wrote...
    I agree with AJ. and Ted
    December 3, 2012 9:40 am
    Look; they could easily pay all their workers a true living wage. I absolutely agree these companies depend upon the American taxpayer to subsidize their workers. Companies treat their employees as "exploitables," because they are enabled by the government to do so. And the "big wheels" roll in another eight million a year...laughing at all of us.
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  • messiah101 wrote...
    BUT!!
    December 3, 2012 11:19 am
    WalMart workers can't refer to themselves as Barista's
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  • chellesbelles wrote...
    These people
    December 3, 2012 11:22 am
    act as if they have to work at Starbucks or Walmart. No one is forcing them. If they want a better job, go get one. I am a single mother. I worked full time while going to school full time and taking care of my children so I would not HAVE to work at one of those places. All it takes is hard work. Maybe we should stop teaching our children to feel entitled to everything and teach them how to work.
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  • HLC wrote...
    Good post Chellesbelles.
    December 3, 2012 12:03 pm
    Your on the right course. Hard work pays.
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