Coffee shop giant Starbucks to share out $250m to US employees after tax windfall

26/01/2018 - 07:00
Starbucks Coffee Company has pledged to pay out over $250m to its 150,000 US employees through wage increases and new benefits.

Wage rises will make up $120m of the distribution, with increases allocated based on regional cost of living and laws that vary from state to state.

The announcement comes as a result of recent changes made to US tax law by President Donald Trump which saw corporate taxes lowered to 21% from a rate of 35%.

As part of the new offerings, the Seattle-based company will also give stock grants to everyone employed at the company's stores, plants and support centres, starting from April.

“Today, we are proud to announce additional investment in stock, wages and a new Partner and Family Sick Time benefit that will further enhance our industry-leading approach,” said chief executive, Kevin Johnson.

“Just as we have always felt strongly that our partners are key to our business success, we have also known offering a valuable, comprehensive benefits package helps us retain our valuable partners [employees].

“The value of Starbucks benefit package [fully accessed] is unmatched by other retailers and provides thousands of dollars above the value of other companies compensation offerings.”

Starbucks said it already pays above the minimum wage in all states across the country.

Funds from the firm’s tax windfall will be also contribute to $7 billion worth of investment in building and renovating stores, manufacturing plants and technology platforms in the U.S. over the next five years.

The company, which operates over 26,000 stores worldwide, around half of which are located in the US, turned over $22.387 billion in 2017, with an operating income of $4bn.

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