Starbucks to pay more than $200m for US labour

admin 0

Starbucks is planning to pay about $200 million for American labour in the next few years, the company’s CEO said on Tuesday. 

“I’m going to make a big investment in our global operations, and the global investment that we’re making in the US will be a big part of that,” Starbucks Chief Executive Howard Schultz said during a news conference in New York City. 

The announcement comes as Schultz is seeking to bolster US retail sales after the retailer suffered a third straight year of declining revenue.

Starbucks has been struggling to turn a profit since 2009 and has lost more than half its value since 2010. 

Schultz said the US labour market is competitive, and that the company will hire more people and train them on how to run stores. 

He added that Starbucks will use the $200-million investment to expand its American operations, invest in training programs, and invest in technology. 

 The deal with a major American company has been widely reported in the American media, including Business Insider. 

A source familiar with the matter told Business Insider that Schultz would not be paid a commission or bonus. 

According to the Wall Street Journal, Starbucks is considering paying workers a minimum wage of $10 per hour. 

Starbucks has been criticized for its low wages, and for hiring temporary workers and firing people who have quit. 

During Schultz’s visit to the US, he pledged that Starbucks would “continue to invest in American manufacturing”. 

Starbuck’s earnings are the second-highest on record for the company.

Starbucks shares were trading around $52.75 on Tuesday, down from a record high of $66.75 a year ago. 

Follow the CNN US business section on Twitter: @BusinessInsider