Amidst its ongoing battle against a nationwide unionization push by its workers, Starbucks
The student loan tool and savings account come into effect on September 19 and will be automatically available for workers at non-union locations. However, Starbucks says that unionized locations will have to bargain to access the benefits.
"We've heard from our partners and know that pressures of inflation, in addition to debt and savings are weighing heavily on them," Ron Crawford, Senior Vice President of Total Rewards at Starbucks, is quoted in the announcement. "Providing industry-leading benefits for our partners is a cornerstone of who we are as a company."
The coffee chain says that the decision to add the benefits came as a result of "thousands of conversations with partners", and that the tools are meant to improve the financial stability of its workers.
Along with these new benefits, Starbucks also recently raised the pay for workers at non-union locations to an average of roughly $17, effective August 1.
The student loan repayment benefit, Tuition.io, allows student borrowers and their families to view all of their student loans on one centralized loan management platform, a platform where they can also access coaching sessions, repayment plans, and loan refinancing.
"As we approach the time when payments will be restarted for federal loans," Scott Thompson, CEO of Tuition.io, said, "we're honored to work with Starbucks to support their partners and their families to make the best financial decisions regarding repayment of their student loans and options for financing their future education."
The second new benefit, My Starbucks Savings, is a Fidelity-supported savings account. According to the company announcement, partners can contribute a set portion of their paycheck directly to their account on a recurring basis. Starbucks also says it plans on giving $25 and $50 credits to workers who reach preset savings milestones.
"We believe that when we invest in you and your greater aspirations we are investing in the success of Starbucks too," Starbucks chief partner officer, Sara Kelly, said in the press release. "This is just one more way we are co-creating a meaningful partner experience and a better future for Starbucks."
In 2022 alone, the company has spent $1 billion on new worker benefits. Still, according to analysts, Starbucks has plenty of money on hand to put towards improving the lives of its workers.
"They have plenty of liquidity to do that without hampering the dividend," said Brian Yarbrough, an analyst at Edward Jones.
During its annual investor day on September 13, Starbucks significantly raised its long-term financial outlook and introduced plans to improve store operations, including by adding more ovens and other equipment at franchise locations. The chain also said it would simplifying its processes to speed up production of cold brew and batch brew hot coffee.
While these changes are meant to address both the growing demand for Starbucks coffee and its ever expanding menu, they're also an attempt to improve the working conditions for partners in order to weaken organization efforts.
