Starbucks Blues

SAGA: Starbucks, Apple, Google, Amazon—and their wannabes.
Starbucks Blues

Lean times and labor pains are tarnishing the coffee giant’s image.

By Liza Featherstone
Posted Wednesday, October 29, 2008 - 8:12pm

Fall is pumpkin-latte season for those who can still afford to indulge, but for Starbucks workers, it's been a season of discontent. The coffee giant has recently responded to hard times with scheduling changes that are likely to inflict misery on its employees. These policies seem sharply at odds with Starbucks' reputation for social responsibility but make sense in the context of the company's record as an employer. Curiously, the coffee retailer's benevolent image seems most fragile at the moment that the company's best days seem to be receding into the past.

The store atmosphere remains suffused with NPR-style high-mindedness. A fact sheet from Good magazine about the U.S. economy's woes is prominently displayed, as is Helene Cooper's memoir about her childhood in Liberia. So it's fitting that when Starbucks introduced a new human-resources strategy two weeks ago, a new company manual for managers—obtained and shared with TBM by the Starbucks Workers Union, a group of employees pressing for better wages and working conditions—explained the change in lofty terms, insisting that it was "a philosophy, not a program."

This new "philosophy" is called "Optimal Scheduling," and it requires that "partners" (Starbucks-speak for employees) must dramatically increase their own flexibility. If they'd like to work full time, they must be available to work 70 percent of open store hours. (For a Starbucks open 16 hours a day, as is typical, this means 80.5 hours per week.) Many Starbucks employees say they want to work more hours; the new system could make it possible for those people to work more by downsizing those who can't or don't want to. Starbucks spokeswoman Tara Darrow says optimal scheduling is "a win-win for our customers and partners" that will lead to "more stable scheduling and more satisfied partners."

Liberte Locke, a New York City barista, is not one of those "satisfied partners." Why? Because, although she has opened up her entire day to Starbucks (from 4:15 a.m. to 11 p.m.), the company is "not guaranteeing any hours, not a single one." She's right: The fact that no hours are guaranteed, even for workers classified as "full time," is underscored repeatedly in the company managers' manual. The company is demanding almost all their time and, Locke says, "We are getting nothing in return." Optimal scheduling amounts to a permanent booty call; only the most boorish boyfriend would insist on such conditions.

The new availability requirement could make it almost impossible for employees to have a second job, as many low-wage workers must in order to make ends meet. Erik Forman, who works at Starbucks in the Twin Cities' Mall of America, says one of his fellow baristas opens McDonald's and closes Starbucks every day. Another co-worker opens Starbucks and closes IKEA. As Liberte Locke points out, Starbucks "doesn't pay enough to be someone's livelihood," especially with no hours guaranteed.

Being available 80.5 hours a week, Forman points out, will also be hard on "a student, a mother, or anyone who does anything besides working." Workers who can't make themselves available for the required number of hours will, within six months, lose their jobs. "It's another way for [Starbucks] to thin the herd," says Locke, "to have layoffs without calling them layoffs."

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Nothing New

This has been Starbucks policy (though perhaps unofficially) for years. I worked my way through college at Starbucks and stayed there for a short period of time after I finished.

Shift supervisors were required to be available 100% of the time, and hours weren't guaranteed. That meant being available from 3:45 am to 11:30 pm seven days a week. It wasn't uncommon to be scheduled for less than 30 hours per week and very rare to be scheduled for more than 35 hours per week.

Regular baristas didn't have it much better. They were allowed more flexibility with their availability. However, they were regularly scheduled for 19 hours per week, thus ensuring they wouldn't hit the 20 hours per week required for benefits.

I don't mean to be entirely negative, Starbucks got me through school, and the lack of hours was a great incentive to go out and find a real job instead of wasting more time there.

Erik Forman

He should've stuck with Donna Pinciotti. He would've gone a lot further.

Growth promises

One underlying weakness in the Starbucks model was that it made growth promises

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