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Savings Experiment: Snow RemovalStarbucks (NASDAQ:SBUX) is on the Fortune list of "100 Best Places To Work." It is extremely hard to imagine how that happened. It fired 12,000 people earlier this year and now it's is saying it may not match employee 401 (K) programs. According to USA Today, "In a memo sent to workers last week, Starbucks said it will switch to a "fully discretionary match" program from a fixed employer match as of Jan. 1."
To make matters worse, Starbucks is in hot water for trying to keep unions out of its New York stores. According to The New York Times," a National Labor Relations Board judge ruled on Tuesday that Starbucks had illegally fired three baristas and otherwise violated federal labor laws in seeking to beat back unionization efforts at several of its Manhattan cafes."
What becomes more clear with each passing month is that the image Starbucks wants to push with its workers and the public is false. It is not a company that takes remarkably good care of its people. The PR crew at the company paint an image of founder Howard Schultz as a benevolent father to his employees, a guy who wants them to get ahead and fulfill their full potential. This probably helps bring in customers who want to see all of those happy workers getting up at the crack of dawn and working long hours to serve customers who love Starbucks for its great products and pristine image.
It is worthwhile to remember that Starbucks is still a successful company and Schultz is not working for a dollar a year.
The coffee chain is promoting an image that is simply not true.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
12-24-2008 @ 9:04AM
Sheldon L said...
I have to disagree with you on this one Doug. Few companies live up to the hype, SBUX included.
Does Wal-Mart or McDonals have a 401-K program? Would either store want the unions messing with their business? Are we in very unusal times?
McDonald's competes with SBUX but does not offer the same benifits or working environment. SBUX is adjusting to its circumstances by necessity not because they would cut the 401-K otherwise.
Disclosure: I own 100 shares of SBUX
12-24-2008 @ 9:52AM
Rusty said...
Seeing how the Union has driven the Big 3 to it's knees with a "welfare state" I can see why Starbucks would freak a little about the Union forcing its way in.
12-24-2008 @ 3:57PM
John Medcalf said...
Starbucks brand is down 90% the past two years.
Music for 70 year olds.
Breakfast turds microwaved in a confined 500 sq ft closet. I've walked out of SBUX at least 50 times when the line was more than 3 people rather than smell that garbage. Thank goodness they got rid of them this past September.
Commandeer the tips in CA (and elsewhere).
Fire union organizers.
Give a nickel from a $1.80 bottle of water to a cause.
Over build.
Restart brand with smarmy smile day after two hour store closing. Probably had smile trainers with electric prods.
Send bean counters to some stores who couldn't treat a customer with respect if they were standing in front of them. I'm guessing the bean counters were in as enforcers/tattlers.
Discount everything 20% to those who paid Costco their signup fee - but certainly not the other regulars.
Undersupply some stores with cups and sleeves and ??? on at least a once a quarter basis.
Almost always interrupt customer when he is ordering vente drip, double cupped, with a sleeve, no room so as to take more time getting another cup or filling the cups.
Why do I keep going back? Nearest quick cup of coffee. 50 cent refills in the afternoon no questions asked. and # 1 - if you could guarantee me a disaster every third time I visited any other type of location I would probably pay for that entertainment too.
Merry egg nog season.
12-30-2008 @ 10:21AM
fbux said...
point blank starbucks managers couldnt manage a dog kennel let alone people. shit rolls downhill. or maybe in this case up hill.
SUPPORT YOUR LOCAL COFFEEHOUSE.
1-23-2009 @ 4:56PM
alt3673 said...
I am so tired of people commenting when they don't know the facts!!! I have worked for sbux for almost seven years now and it is an AWSOME company to work for. Times have changed and things are tough, but the company is adjusting just like all others. I can promise you there is no one prodding me to smile when I serve my customers. We are all trying to survive the economic crisis, and as a partner, I do not disagree with any of the changes that have come our way.