Starbucks Announces Enhanced Worker Benefits But Excludes Union Shops

SEATTLE — Starbucks' sales hit record levels in the fiscal second quarter, with revenue rising 15 percent to $7.6 billion for the 13-week quarter. Starbucks CEO Howard Schultz announced Tuesday that some of that money will go back into the workplace, setting aside $200 million in investments into worker pay and training.

But those benefits will not be applied to any Starbucks store that has unionized or filed a petition to unionize. Over 250 stores have filed to join the Starbucks Workers United Movement. Tuesday marked the 50th store to vote in favor of unionization.

Schultz claims the decision was necessary because U.S. labor law requires union stores to negotiate their own contracts with Starbucks.

“We do not have the same freedom to make these improvements at locations that have a union," Schultz said.

The Workers United Movement disagrees, however, and filed charges Tuesday with the National Labor Relations Board against Starbucks.

“These benefits, including ones we’ve demanded since the beginning of our campaign, are a response to our organizing efforts and we should celebrate the hard work that partners who stood up to Howard Schultz’s bullying put in to make this happen,” the group said Tuesday in a statement.

The Starbucks Workers United Movement has already filed dozens of charges against the coffee giant, claiming the company has used bullying, intimidation and other illegal means to squelch the burgeoning movement.

"Howard Schultz ordered Starbucks managers to ramp up their union-busting, then threatened all unionized & unionizing partners that we won't be able to participate in new benefits," the union tweeted Thursday.

Starbucks' investments into non-union stores will include nearly doubling the training baristas receive from 23 hours to 40 hours, and raises for employees who have been at the company for at least two years. The company is also reportedly considering other bonuses, such as increased sick leave.

The Starbucks union effort began in Buffalo, New York, but has rapidly spread across the country. To date, more than 250 stores across the country have filed to join Workers United. Among those are six Seattle-area Starbucks locations, including the now-unionized Flagship Reserve Roastery and Broadway & Denny location.

Reporting from the Associated Press contributed to this story.