This Article is From Nov 12, 2012

Starbucks' statement on report over wage structure

Mumbai: This in reference to a recent report filed by a UK-based publication on the wage structure of Starbucks in India. Contrary to the information that is provided in the report, it is critical to highlight the importance that Starbucks has always placed on taking care of its people. This is in the form of compensation and benefits, as well as partner development through education, training and engagement; providing partners with an environment that supports and inspires.

Contrary to what is stated in the report, we would like to highlight the following facts:

  • Partner compensation: Our full compensation plan in India is designed to ensure that we are placed at a premium position to attract the best talent in the Indian market. Our pay packages for our baristas are not only premium in the coffee sector, but also place us at par with the top level in the QSR sector in India.
  • We pay our partners a starting wage of 41.40 GBX (35.94 INR ) per hour with additional benefits such as medical insurance, accident insurance, and statutory benefits.
  • Our vendors strictly adhere to the minimum wage regulations and other compliances as stipulated by the State Government.
  • As a result, contract employees are paid at the minimum wage stipulated by the State Government and in some sections of our workforce are paid around 20% higher than the minimum wage stipulated by the State Government.
  • We also offer other benefits to our partners in India, such as a 30% discount on all in-store items, stipulated coffee and food consumption in-store on all working days, and 6 months maternity leave and 7 working days paternity for our partners (employees), as against 3 months maternity leave stipulated by the Government.

Before opening our India business, we conducted comprehensive research to ensure our full benefits package was at a premium level, as we have always recognized the important role our partners play in delivering an exceptional experience to our customers. We take our responsibility as a global business seriously and have always worked to ensure our approach to employment is consistent with our foundational values as a company. 

Having shared this information with you, we respectfully request that you accurately reflect the commitment Starbucks has always had to its people and our long-term commitment to build the business in India the right way.
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