Industrial Workers of the World posts

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Starbucks mixes up schedule to slash labor costs

In the face of a tough economy, a weak stock price, and formidable competition from lower cost coffee sellers like Dunkin' Donuts and McDonald's (NYSE: MCD), The Wall Street Journal reports (subscription required) that Starbucks (NASDAQ: SBUX) is taking steps to bring down its labor costs.

The idea is to have fewer workers working more hours, with an eye toward making more of the baristas full-time, working 32 hours or more per week.

The Industrial Workers of the World, a labor union that has been trying to make inroads at the chain, complains that the new system does not guarantee that workers will actually receive those hours. The idea is that cost savings will come from lower employee turnover and reduced training expenses. Because Starbucks already offers generous benefits packages to its part-time workers, the cost increases on that side will likely be minimal.

More importantly though, the move will deliver a more consistent experience for customers, with more knowledge full-time, familiar faces serving coffee.

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Last updated: February 12, 2012: 08:09 PM

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