Low Wages and Grande Profits at Starbucks
Starbucks has been a very successful company over the past decade, increasing sales and profits almost every single year. The company stock price has also increased dramatically since 2010. However, what has been good for shareholders has not necessarily been good for the company’s “partners” (workers). An analysis of company performance and staffing before and after the Great Recession of 2008-2009 shows that the stores are now staffed at a lower level, workers are working harder, and they are bringing in much more profit for the company. Instead of funding a living wage for workers, the company has transferred almost $4 billion to shareholders in the past few years, equivalent to over $3 per hour for every worker at the company. Starbucks should compensate its workers with a living wage, ensure better store staffing and scheduling, and respect the workers’ rights to organize a union.
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