Starbucks raising US workers' pay as union effort looms

Starbucks is raising its U.S. employees’ pay and making other changes to improve working conditions in its stores

Starbucks said Wednesday it is raising its U.S. employees’ pay and making other changes to improve working conditions in its stores.

The Seattle-based coffee giant said all of its U.S. workers will earn at least $15 — and up to $23 — per hour by next summer. In late January, employees with two or more years of service will get a 5% raise, while those with five or more years of service could receive up to a 10% raise. Workers can also get a $200 recruitment bonus to help attract new employees.

In a letter to employees, Starbucks' North America President Rossann Williams said the pay raises not only support workers but will enhance recruitment efforts in a challenging labor market. Starbucks said it’s the third time in 24 months that it has raised workers’ pay.

The action comes amid some worker unrest for the company. Employees at three Starbucks stores in Buffalo, New York, are trying to form a union to give them greater leverage on issues like understaffing of stores and worker training. The group, Starbucks Workers United, has filed petitions with the National Labor Relations Board seeking union votes.