Dive Brief:
- Starbucks may be paying some employees higher wages and be a designated "happy" place to work, but some employees are not smiling, claiming the coffee chain is undergoing a "labor crisis," according to CNNMoney.
- The disgruntled employees say Starbucks stores have been reducing hours and, as a result, neutralizing the pay increases. In fact, the group, which started an online petition (16,500 signatures so far), say they are actually taking home less money.
- The group claims the reduction in hours was a morale killer. CNN Money reports that Starbucks, in a letter to employees, said it reviewed the complaints and found issues to be "isolated."
Dive Insight:
Apart from the hourly cutbacks, CNNMoney interviewed five Starbucks employees who reported being concerned about losing their health insurance coverage (the company makes coverage available to anyone working 20 hours weekly on average).
Other complaints included understaffing, which hurts service standards due to longer lines and dirty stores nationwide. One case reported to CNNMoney had a Florida Starbucks encouraging extended unpaid breaks and sending employees home early to save money. There was also a "shift communication" from the manager, was which shown to CNNMoney.
No comment from Starbucks on the shift communication issue, but in its letter to employees, the company said it "looked into every one of the situations" and "found complaints valid in a small percentage of cases" and has dealt with problem directly with the specific stores.
After the company received almost universal praise for its employee-focused programs and benefits, including free tuition and other perks, it will be interesting to watch how those square up with actual employee experience.
