American coffee chain company Starbucks announced Wednesday that plans to increase its minimum wage in the U.S. next year. The company said the minimum wage will be increased to $15 per hour, which could go up to as high as $23 for baristas in some states.
Starbucks said increases in pay from the minimum of $15 per hour will depend on an applicant's experience or tenure and the particular location of the outlet he or she is applying to. Starbucks currently pays its employees an average hourly rate of around $14.
Earlier in the year, Starbucks announced that all employees that had been working at the company for at least two years will be given a 5% raise. Meanwhile, those that have been with the company for at least five years will be given a raise of up to 10%.
As part of its wider plan to attract more workers in light of the current applicant shortage, Starbucks also announced another incentive for people that can refer new hires. The company said "recruiting specialist" that will help facilitate and refer applicants may be able to receive a $200 referral bonus for each person hired.
The announcement comes as staff members at multiple Starbucks locations, including those in New York, are attempting to form a union. Starbucks commented on the issue, stating that it respects the rights of employees to unionize but it thinks such actions are unnecessary given its pro-worker environment.
Other restaurants and cafés are also facing the same problem of a lack of applicants and of locations being understaffed due to the pandemic. Other industries are also facing similar issues, which have been exacerbated by global shipping disruptions.
McDonald's recently increased its minimum wage, which then prompted it to hike the prices of some of its products. Restaurant chains such as Domino's and Chipotle are also struggling to find enough employees as demand for their products surges amid the gradual economic reopening.
U.S. Labor Department data showed that the number of jobs added in September was considerably below forecasts. Last month, just 194,000 jobs were added, compared to the 500,000 positions predicted by analysts.
