Starbucks Corp. just joined the growing list of US corporations that are boosting pay for workers thanks to the Trump tax cuts.
The company revealed Wednesday morning that it plans to spend $250 million on new employee benefits – including a pay boost for domestic workers, in the wake of the federal tax overhaul, Bloomberg reported.
The coffee chain will increase pay for its 150,000 US hourly workers and salaried employees in April, following its regular annual raise earlier this month. It’s the latest US corporation to pledge to spend a portion of its federal tax-cut windfall this month. The company is also giving an extra 2018 stock grant to US employees, and sick time will expand parental leave to include non-birth parents.
“Investing in our partners has long been our strategy,” Starbucks Chief Executive Officer Kevin Johnson said in a memo to employees.
“Due to the recent changes in U.S. tax law, we are able to accelerate some significant partner investments.”
Unlike Wal-Mart, Starbucks isn’t touting a new starting wage. The coffee giant says the new level will vary by region, and it already pays more than the minimum wage in all 50 states.
Starbucks also has been investing in mobile technology to fix congestion at pickup counters in the U.S., where sales have struggled to keep pace with international growth. The company is slated to give investors an update on its progress when it reports earnings on Thursday.
Yesterday, both JP Morgan Chase & Co. and Disney announced wage hikes and bonuses for employees. JPM also said it would embark on a $20 billion plan to expand its branch locations.
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