Before the Trump Tax Cut passed Congress, his critics predicted an economic catastrophe. Instead, we have seen dozens of major companies pass along their savings to their employees. Now, one of the biggest companies to actively work against the President is having to eat crow and jump on the Trump Train.
For years, Starbucks has advocated for liberal causes and Democrats. The company leadership openly supported Hillary Clinton’s candidacy. In a move to show their displeasure with Trump on his travel ban, it announced that it was hiring thousands of refugees. Howard Schultz, the Starbucks Chairman of the Board, has criticized Trump on a number of occasions. It supported efforts to legalize gay marriage and Schultz said any Starbucks shareholders who believed in traditional marriage should sell their shares.
And yet, thanks to Trump, Starbucks has announced that they are raising wages and adding to their benefits.
Starbucks is giving its US workers pay raises and stock grants this year, citing recent changes to the tax law.
All employees will soon be able to earn paid sick time off, and the company’s parental leave benefits will include all non-birth parents.
Starbucks said Wednesday that the changes affect about 150,000 full-time, part-time, hourly and salaried employees, most of whom work as baristas or shop managers.
The new benefits apply to workers at more than 8,200 company-owned stores but not at the 5,700 licensed shops like those found inside supermarkets.
Starbucks is the latest to say it’s boosting pay or benefits due to the passage of the Republican tax plan, which slashed the corporate tax rate from 35 percent to 21 percent. Walmart, for example, raised its starting hourly salary from $9 to $11 earlier this month, and also expanded its parental leave benefits.
Starbucks said workers will get a pay raise in April, their second increase this year. The company declined to specify how much more workers will be paid or what it pays them now.
The job and recruiting site Glassdoor says baristas make about $9.60 an hour, based on an average of salaries shared by Starbucks employees.
The company will give at least $500 worth of Starbucks stock in April to employees at stores, support centers or bean roasting plants. Store managers will get $2,000 in stock grants. Those amounts are on top of what those workers were already going to receive this year, the Seattle-based company said.
All workers will also be able to earn paid sick time off based on the hours they worked starting in July. Previously, only those who worked in states that had sick leave laws were paid for time off due to illness.