Starbucks introduced a suite of programs designed to support eligible associates in of them critical areas of financial well-being: savings and student loan debt. The new benefits will launch Sept. 19, 2022, to help provide financial stability for associates and help them manage college debt, but they wouldn’t initially be extended to unionized workers, according to Reuters.
One program is My Starbucks Savings, launched in partnership with loyalty. All eligible associates will be able to contribute a portion of after-tax pay on a recurring basis directly from their paycheck to a personal savings account. Additionally, Starbucks will contribute $25 and $50 credits at the key stages of savings. up to a total of $250 per associate eligible for the bonus.
“Too many Americans are financially unprepared for the unexpected, and this current economic environment only makes it more important to help people establish strong savings behaviors and a foundation to cover future expenses. term,” Kevin Barry, president of Workplace Investing at Fidelity, said in a statement. “As this program shows, employers are able to help, which is why Fidelity is pleased to work with Starbucks and other companies to provide savers with a way to achieve their financial goals, such as saving money. ’emergency.”
Starbucks will also launch a student loan servicing service through Tuition.io to help eligible associates manage and optimize student loan repayments. Employees and their families will have access to new tools, one-on-one coaching and resources such as repayment options and loan refinancing. The platform’s tools will also help associates view all of their student loan debt in one place and locate the best individual action to take based on their personal repayment scenario and goals.
“Student loan debt remains a huge financial burden for almost all 48 million American consumers who have borrowed to fund the education needed to unlock the best career opportunities,” Scott Thompson, CEO of Tuition.io said in a statement. “As we approach the time when payments will resume for federal loans, we are honored to be working with Starbucks to help their partners and families make the best financial decisions about their student loan repayments and their home financing options. future studies.”
Starbucks previously announced that it was working on new benefits that it could not extend to unionized employees. However, Workers United, the union that backs organized associates at Starbucks, said the company can legally offer benefits to unionized stores without formal negotiation, as long as the union agrees.
Among retailers, Starbucks has seen the most union activity, with more than 200 stores voting for unionization, and its response has come under scrutiny from the National Labor Relations Board (NLRB). In August 2022, the NLRB won a case in which the Western Tennessee District Court issued an injunction requiring Starbucks to restore Seven unlawfully dismissed workers and rescind and erase unlawful disciplinary action imposed on an employee.
On September 13, the NLRB reportedly filed an unfair labor practices complaint against Starbucks for its treatment of unionized workers at four Pittsburgh stores, according to Tribune-Review. The complaint included accusations that the company had threatened to withhold wage increases if workers unionized and that benefits would be frozen, among other things.