Starbucks Workers Get Poorer

The minimum amount Starbucks workers are paid increased to $15 recently. That equates to a little over $31,000 a year. Once taxes and social security payments are taken out of this compensation, the figure falls under $25,000 in most cases. The raise also came as inflation was in the midst of the highest increase in prices in nearly four decades. Based on this calculation, Starbucks workers may have become poorer than they were a year ago.

While those who are paid low wages can drop their cost of living by a very small amount, they still can’t dodge the increase in essentials, including housing, fuel bills, food, and clothing. Many of these prices have risen faster than overall inflation, as measured by the Consumer Price Index, which is called the “Consumer Price Increase” in certain quarters.

Starbucks employees do not have many places to turn to get better pay. Most do not have college education. Others are retirees who need to supplement Social Security payments. These people, in general, do not have a large number of alternative job options.

Some workers have turned to unionization. Senior executives at Starbucks have fought this with unusual ferocity. They see it as an avenue down which lies a loss of control of one critical part of their stores. The worker union efforts have only begun at a small number of locations. It will take years for unions to take hold in most of the coffee company’s nearly 16,000 locations.

Starbucks workers have become overwhelmed by the Consumer Price Increase. And, they have no way out.

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