NEW YORK — Starbucks is boosting the base pay of all employees and store managers at U.S. company-run stores by 5 percent or more.
In a letter sent to workers Monday, CEO Howard Schultz said that the amount of the raise — which will occur in October– will be determined by geographic and market factors. Starbucks doesn’t disclose specifics on starting salaries for employees, saying it’s determined on a market by market basis.
Starbucks has approximately 7,600 company-run stores across the country.
Pay for entry-level jobs has become a hot political topic ahead of the presidential election. Over the weekend a draft of the Democratic Party’s policy positions was being pieced together. It includes a call for a $15 federal minimum wage over time. Republican Donald Trump favors leaving the wage decision to the states.
Tension over pay has been rising for major U.S. corporations that employ thousands of entry-level workers. Workers at McDonald’s Corp. have picketed across the country outside of restaurants for starting pay of $15 an hour. Last month Macy’s Inc. struck a tentative deal with some of its workers, in which an employee union negotiated higher wages and more affordable health care.