Starbucks, Once a Good Employer, Now at the Bottom of the List

March 30 2023, by Matt Perez

Starbucks shows why co-management is not enough. We need to get away from ownership based on capital to co-ownership based on contributions.

Sad

This makes me sad because once upon a time, Starbucks was the good, generous employer. The thing that got the most press is that they paid for health insurance for part-time baristas. This shows why co-management is not enough. We need to get away from ownership based on capital to co-ownership based on contributions.

Starbucks Green Apron Book

They even had a Starbucks Green Apron Book, ∇ 

The Starbucks Green Apron Book is one of the first things a new Barista gets when they start their job at Starbucks. … The book is full of great insights into how the company works and how customers should be handled each and ever day. … Some pages tell of how to get involved in the company, be knowledgeable about the coffee, create a great working environment and what a customer should expect from their Starbucks experience when they enter any store. … [It] outlines the legendary service Howard Schultz created when making Starbucks what it is today.

  • Be knowledgeable.
  • Love what you do, share it with others.
  • Be involved. In the store, in the company, in the community.
  • Our Values: Passion for everything we do. Integrity. Entrepreneurial spirit and drive. Pride and success. Respect for our partners.
  • Our Purpose: To provide an uplifting experience that enriches people’s daily lives.
  • Be Welcoming:
    • Greet customers as they walk through the door.
    • Start a conversation.
    • Get to know customers drinks and names.
    • Ensure that the customer is the number one priority.

Very Different Today

Since then Starbucks Starbucks has become one of the worst employers around. This is what @shansterable@c.im posted this in Mastodon’s sfba.social today,

In a study of America’s 250 largest companies, funded in part by the Schultz Family Foundation:

  • Starbucks received the lowest possible rating on its pay and frequency of internal promotion
  • Of the 11 food and retail companies studied, Starbucks ranked second to last regarding pay, promotions, and retention – worse than Dollar Tree, Walmart, Dollar General, and Kroger and just slightly better than McDonald’s

Starbucks has engaged in the most significant union-busting campaign in modern history. It has been led by Howard Schultz, the company’s founder and 3-time CEO, who is synonymous with the brand.

The National Labor Relations Board (NLRB) has more than 500 pending cases against Starbucks and NLRB judges have found Starbucks has violated the law over 100 times.

According to a March 27, 2023, US Senate Health, Education, Labor, and Pensions Committee (HELP) report.

This shows that co-management is not enough. It is inspirational and values and purpose sound good: you really want to believe it! But whether they apply or not, it is up to the owners. And when a business like Starbucks focus on the financial bottom line. As it happened in Starbucks, the owners can decide to ignore values, purpose, and all the rest and focus on the financial goal. Starbucks is not the first one to go from “good” employer to “what’s the margin” employer.

We need to get away from ownership based on capital and towards decentralized ownership based on contributions. Co-owners will not go against themselves.

ENDNOTES

By: Matt Perez
Co-founder RADICAL World

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