Starbucks commits to paying employees for 30 days

In an interview with CNBC’s Jim Cramer, CEO of Starbucks, Kevin Johnson, has said that “this is a time prioritize people over profit“. He committed to Starbucks paying its employees for 30 days. This is certainly great news for Starbucks employees, and very atypical for this industry. He went on say that the company is able to track the progress of the virus and the recovery from it based on their experiences from their Chinese market events.

In addition to Starbucks paying its employees for 30 days, in its corporate statement it said that they are navigating this “situation community-by-community and store-by-store” basis. The statement went further to say:

  • We are temporarily closing access to our company-operated cafés and reducing our service to drive-thru and select grocery locations in the U.S. and Canada for at least two weeks starting Mar. 20. Customers can order at the drive-thru ordering point or use the Starbucks app to order ahead and pick up at the Drive-thru window.
  • In addition to existing benefits such as sick pay and personal time off,  the company will pay all partners from Mar. 21-Apr. 19, even if they choose to stay home. This includes those who has been diagnosed with or exposed to COVID-19 and those who may need to take extra precautions, such as those 60 years or older or who have underlying health conditions, or are worried about or feeling unsafe coming to work.
  • Partners who are able and choose to continue to come to work will be eligible for Starbucks Service Pay, an additional $3 per hour for shifts worked as scheduled Mar. 21-Apr. 19.
  • Another resource is the company’s CUP Fund, which provides grants for partners experiencing financial hardship.
  • Partners can access free counseling through the Employee Assistance Program and Headspace for mindfulness and meditation. Starting Apr. 6, partners can sign up for a new mental health benefit through Lyra Health.
  • Some Starbucks cafés serving in or around hospitals and healthcare centers may remain open in our efforts to serve first responders and healthcare workers.
  • We continue to observe elevated cleaning and sanitizing protocols to help prevent the spread of all germs in our stores.
  • Delivery continues to be another option from those Starbucks locations still open through Starbucks Delivers in markets across the United States and Canada through the Uber Eats app.
  • We have temporarily expanded the Care@Work program to provide support for partners needing additional backup childcare options as a result of school closures.

All of these sound like fantastic points. They show great leadership and a solid forecast for the future. Let’s hope other companies large follow “this is a time prioritize people over profit” mentality.

Comments

2 comments on “Starbucks commits to paying employees for 30 days”
  1. salguod says:

    Two of my three kids work at Starbucks and their location has a drive thru and is one of a few still open in Columbus. They’ve been busy. Their extra care for their employees is encouraging.

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