Tenured workers will get wage hikes and new employees will receive double training Starbucks said as the company seeks to fend off the union push coming from baristas. There will be no offer of enhanced benefits for workers at the unionized cafes.

“So, partners will receive these pay, benefits, and store-improvement investments at all U.S. company-operated stores where Starbucks has the right to unilaterally make these changes. However, at stores where workers have union representation, federal law requires good faith bargaining over wages, benefits and working conditions which prohibits Starbucks from making or announcing unilateral changes.” 

The company said in a statement.

The plan is to spend nearly $1 Billion on upped wages, improved training, and some store upgrades during 2022. Howard Schultz suspended Starbucks’ buyback program to invest in the company’s workers and stores.

“The transformation will accelerate already record demand in our stores. But the investments will enable us to handle the increased demand - and deliver increased profitability - while also delivering an elevated experience to our customers and reducing strain on our partners.”

Shultz said during a conference call.

The third time’s a charm and for Shultz, this reigns true. He is on his third time as Starbucks CEO and is working on an interim basis until the company hires a successor for Kevin Johnson.

Shultz stated that new benefits legally couldn’t exist for stores that have unionized without separate contract negotiations. The Starbucks union, Starbucks Workers United, filed a complaint with the National Labor Relations Board about his comments.

Baristas working at the cafes have received a third wage increase since stores began to file petitions to unionize. The floor is up to $15/hr which begins in August. Employees who have been with the company for 2-5 years will receive a 5% increase in wages or 5% above the market’s start rate. The good thing for employees is that they will receive whichever is higher. Workers who have been behind the counter for five years plus will get an increase of 7% or 10% above the market’s start rate.

In training new employees, Starbucks said they would double the training for new baristas and shift supervisors based on feedback from employees. Investments don’t stop here as the company states it will introduce credit and debit card tipping by the end of 2022 and is also planning to enhance the equipment and technology used at the various cafes.

Starbucks shares have dropped nearly 19% since Shultz made his return. However, the company’s stock surged roughly 3% in after-hours trading after its Q2 earnings report showed strong sales growth.