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Starbucks has more than doubled paid leave for new parents working at more than 10,000 stores in the United States, a policy change under new CEO Brian Niccol as the company manages a union organizing effort among baristas.
The enhanced benefit of up to 18 weeks of paid leave will be available to the more than 200,000 baristas, store managers and other retail employees who work in company-operated stores. They currently receive six weeks of paid leave.
Nicholas is in the early stages of an effort to reverse declining sales at the world’s largest coffee chain since he was hired at Chipotle Mexican Grill this year.
starbucks It is also in the midst of talks to reach a first set of contracts with Workers United, a union that has organized more than 525 stores in the U.S. Workers United said Monday that the company increased parental leave after the union proposed it. for the first time last month.
Niccol has visited stores in dozens of markets since joining in September. “Our benefit was already the best in retail, but after hearing from some partners that sharing leave as new parents was not appropriate, we reviewed the program and decided we are making a change,” she said in a message posted online. on Mondays.
Starting in March, store employees who have given birth will be entitled to up to 18 weeks of fully paid leave. Twelve weeks of paid leave will be available to spouses, partners, and employees who become parents through adoption, foster care, or other means besides childbirth.
The enhanced benefits bring parental leave for baristas closer to the benefit already available to Starbucks corporate employees. Any American store employee who worked at least 20 hours a week would be eligible for longer parental leave, Starbucks said.
Michelle Eisen, a Starbucks barista and Workers United bargaining delegate, said the union had proposed doubling parental leave for store employees last month.
“Without responding to our proposal, the company stated that they are expanding the licenses to all baristas. “We are proud of this victory for all baristas,” Eisen said in a statement. “Starbucks is showing that it has heard our demands and is reacting to our growing organizing movement.”
Starbucks said it did not make the change in response to a union bargaining demand.
Store operating expenses, including salaries and benefits, totaled $12.5 billion at Starbucks locations in North America in the fiscal year that ended in September. A company spokesperson declined to estimate the additional cost of the enhanced benefits. Starbucks shares fell 4.4 percent on Monday.
The new licensing policy will apply to the 10,000 stores Starbucks owns in the United States, but not to the nearly 7,000 licensed stores that operate independently.
Starbucks has long advertised good salaries and benefits compared to other food and beverage establishments. But its baristas have complained of being underpaid and overwhelmed by complex drink orders that arrive at the counter and through the Starbucks app.