Starbucks Refuses To Pay Baristas Court-Ordered Tips

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AP   |   March 28, 2008 02:59 PM


Starbucks Chief Executive Howard Schultz says the coffee chain will not pay its California baristas back for tips they shared with shift supervisors, defying a San Diego Superior Court ruling last week.

Schultz, in a voicemail message to employees Wednesday night, called the ruling unfair and said, "I want to personally let you know that we would never condone any type of behavior that would lead anyone to conclude that we would take money from our people," the Seattle Post-Intelligencer reported Friday.

"When I read these headlines about Starbucks skimming or stealing from our partners it's just beyond my comprehension how irresponsible it is," the CEO said.

The company said in a separate statement Wednesday that there is no money to be "refunded or returned from Starbucks."

The California lawsuit was filed in 2004, and was granted class-action status in 2006. Last week, San Diego Superior Court Judge Patricia Cowett ordered Starbucks to pay baristas more than $100 million in back tips and interest, saying state law prohibits managers and supervisors from taking a cut from the tip jar. A hearing is set for May 1 before Cowett on how the California tip money should be distributed.

Starbucks responded in the statement that "shift supervisors are not managers and have no managerial authority."

Cowett also issued an injunction preventing Starbucks' shift supervisors from sharing in future tips, but Starbucks said it would not comply with the order while it appeals the court decision, the P-I reported.

Since the ruling, two similar lawsuits against Starbucks have been filed, one in Minnesota and one in Massachusetts. Both seek-class action status.


 
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of course supervisors aren't managers, because managers manage and managers aren't allowed to manage anymore. here, you're a manager now, hold these keys--but don't make any decisions! Just follow these orders and if you want your ephemeral bonus, then screw as you have been screwed unto. and if some liberal activist judge cuts through our semantic b.s., we'll just defy the order.

gotta love it when the plutocrats get so full of themselves they think they'll shine on a judge like they do their employees. either schultz is in for some rapid decompression or the appeals panel rounds out his golfing foursome.

    Favorite    Flag as abusive Posted 11:12 AM on 03/29/2008
- terris I'm a Fan of terris 5 fans permalink
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I've started reaquainting myself with my local pre-Starbucks cafes and they are quite good. Bye bye buckbucks.

    Favorite    Flag as abusive Posted 11:07 AM on 03/29/2008
- Ramirez I'm a Fan of Ramirez 292 fans permalink
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HuffPo.
Out of respect to your community members, please either post comments or announce the thread closed to new ones.
Thanks.

    Favorite    Flag as abusive Posted 11:02 AM on 03/29/2008
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Things R changing around here

when I will agree with this troll!

    Favorite    Flag as abusive Posted 05:56 PM on 03/29/2008
- lauram I'm a Fan of lauram 11 fans permalink

My email to Starbucks this am:
I am appalled that Howard Schultz is planning to defy a California judge in the "tip fiasco." I have been a starbucks customer (heavy use) for over 10 years. I will stop going to Starbucks effective tomorrow. This is America and you don't just set aside judge's rulings because you don't like them. Howard needs to throw in the towel and do what the law says.

    Favorite    Flag as abusive Posted 10:51 AM on 03/29/2008
- gcallaghan I'm a Fan of gcallaghan 52 fans permalink
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From the article:

"When I read these headlines about Starbucks skimming or stealing from our partners it's just beyond my comprehension how irresponsible it is," the CEO said.

Only an asshat like Schultz could miss the point that management should not be splitting tips with their employees. If the person in question has the authority to reduce my bill or void it when presented with a valid complaint about product or service then they are above tipping. The chief starbuck-asshole ouight to pay those people more, regardless of their title.

    Favorite    Flag as abusive Posted 10:25 AM on 03/29/2008
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The only reason people even go to Starbucks is because they have never been to a Dunkin Donuts.

Am I right New England? Back me up here....

    Favorite    Flag as abusive Posted 10:25 AM on 03/29/2008
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If you title them as supervisors, pay them as supervisors, out of the corporate till.

Not out of the other employees pockets.



This is just another example of corporations trying to get something for nothing.

Someone to take the responsibility, without having to compensate them accordingly.

    Favorite    Flag as abusive Posted 10:25 AM on 03/29/2008

Boycott and tell Howard, NO customers = no business. Howard will still have to pay the employees though. Who will go to jail if they refuse to obey the judge's order?

Make your own coffee at home with fair trade coffee. If I buy a cup of coffee I got to local coffee shops/bakeries who sell fair trade coffee rather than SB anyway.

    Favorite    Flag as abusive Posted 10:18 AM on 03/29/2008

Starbucks, you know how to avoid this problem in the future? Get rid of the tip jars.

I have no problem tipping in the usual service industries, but it annoys me that, via placement of tip jars, tipping has recently been expanded to counter service as well. What this means is that every time I place an order at a counter, I now have to think about tipping. If I do tip, I resent it. If I don't tip, I feel cheap. It's a lose-lose situation.

I don't doubt that the people behind the counter deserve more money than they make. But why does the consumer have to step up to the plate? It's always the little guy taking it on the chin, never the corporation.

    Favorite    Flag as abusive Posted 10:14 AM on 03/29/2008
- mouselion I'm a Fan of mouselion 123 fans permalink
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Attention, Coffee Drinkers! Stay away from the Starbucks! They want to kill local economy businesses while touting social responsibility by buying Fair Trade certified coffee. By their own figures, their purchases represent 10% of Fair Trade international coffee imports to the U.S., that means 90% of Fair Trade coffee is going to local Mom and Pop's and individual consumers.

http://www.starbucks.com/aboutus/fairtrade.asp

To understand >why< they serve Fair Trade coffee, at all (and why they are phasing out serving rGBH milk), visit the Organic Consumers Association website:

http://www.organicconsumers.org/starbucks/index.cfm

(Note the difference in OCA's story and Starbuck's spin.)

    Favorite    Flag as abusive Posted 10:04 AM on 03/29/2008
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In other words he needs some time to grease some palms to make this judgement go away.


Oh and you who boo hoo the war. There are as many contractors in Iraq as their are soldiers. And to quote Cheney (the vampire) they are all there voluntarily. When they stop volunteering then we can protest or whatever. They are there for the money, almost all of the them. They are not victims. Quit feeling sorry for the "troop's.

    Favorite    Flag as abusive Posted 09:54 AM on 03/29/2008
- mouselion I'm a Fan of mouselion 123 fans permalink
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On contractors in Iraq: Prostitutes do it for the money -- they're not victims of a bullshit way of looking at things (even if it's partly their own fault)?!

    Favorite    Flag as abusive Posted 09:07 AM on 03/31/2008
- nomoredead I'm a Fan of nomoredead 12 fans permalink

Maybe now would be a good time to send over a union organizer to have a little talk with the employees.
It is time for all working americans to make a fair wage.

A loyal union member.

    Favorite    Flag as abusive Posted 09:50 AM on 03/29/2008
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Unions were infiltrated by fascist Mafiosi in the early 20th century with complicity by the elite because they did not want to share with the people.

Why else are Unions so impotent?

    Favorite    Flag as abusive Posted 10:09 AM on 03/29/2008

... and it seems those "fascist Mafiosi" did a pretty damn good job of running things, getting decent wages for the little guy and sticking it it to rich white people (possibly, YOU). I say bring back mob-controlled unions!!!

    Favorite    Flag as abusive Posted 10:53 AM on 03/29/2008
- Enid I'm a Fan of Enid 9 fans permalink

Historically unions enlisted and instructed the worker in his trade and protected the trade from employer exploitation.

Almost everything you take for granted in the employment arena its every rule and regulation were hard wins by workers united. At times by death in their tensions.

You would not have a weekend ( to shop ) if not for unions and so called Communist. That I guess was before your time. Get a book?

    Favorite    Flag as abusive Posted 12:01 PM on 03/29/2008
- shinybear I'm a Fan of shinybear 5 fans permalink

They were busted in the 80's by the Reagan administration in the U.S. and by Thatcher in the U.K.

    Favorite    Flag as abusive Posted 01:46 PM on 03/29/2008
- bobdob I'm a Fan of bobdob 18 fans permalink

I agree. No company should be allowed to get away with paying their employees lousy wages by simply passing the responsibility on to the customer. Starbucks makes an absurd profit margin as it is, and they make their living driving small businesses out of business. The independent neighborhood coffeeshop is largely a thing of the past, due to Starbucks.

If Starbucks refuses to comply with the court order, Starbucks employees need to unionize.

    Favorite    Flag as abusive Posted 12:02 PM on 03/29/2008
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It isn't about the work supervisors do. It is about how they are compensated.

If you title them as supervisors, pay them as supervisors, out of the corporate till.

Not out of the other employees pockets.



This is just another example of corporations trying to get something for nothing.

Someone to take the responsibility, without having to compensate them accordingly.

    Favorite    Flag as abusive Posted 09:46 AM on 03/29/2008

Who cares, this is not important, this is between Starbucks management and its employees...however it is now an image problem which will now cost starbucks more than a hundred million dollars in bad publicity...somebody at top management should be fired for this because this thing should have been settled out of court really stupid!! Smart management would have bought out the baristas and changed operational structure...which should have been different in the first place...a suggestion to the board fire the person in charge of operations and hire someone who read Semlers books on management they apply perfectly to starbucks

    Favorite    Flag as abusive Posted 09:43 AM on 03/29/2008

I think that those who argue a shift supervisor at Starbucks constitutes an "agent of the company" as the court found need to step into a store, watch for about fifteen minutes, then find out who the supervisor is. Over the course of a typical shift, I spend about five minutes of every hour fulfilling my duties as a keyholder, the other 55 I spend taking orders, making drinks, prepping ingredients, cleaning, etc. For this five minutes an hour of "enhanced responsibilities" I've been given a modest hourly raise.
As to the pooled tips concept, I primariliy work the closing shift (where my "Supervisory Responsibilities are 1) balance tills, 2) set the alarm, 3) lock the door.) Our store does more than fifty percent of it's business in the two hour commmuter rush. the other 15 hours a day are spent recovering from and preparing for the following morning's spate of yuppies ready to complain about prices and weight-loss while slurping down a 700 calorie $5+ frappucino. How is it that my contribution to the morning service rush; a clean, well stocked, and prepared store, are somehow an exception to labour considered part of the customer service provided by the morning crew.

    Favorite    Flag as abusive Posted 09:43 AM on 03/29/2008
- cinemaven I'm a Fan of cinemaven 22 fans permalink
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Wow, your obvious love for your customers shines through here...
You do realize you're a customer service agent and those yuppies are your bread and butter... right?

Those who are actually working the morning service rush are the ones who deserve the tips for that period... period! They are the ones who deal with the customers and who are running, serving and listening to the complaints so the thought that they would have to share the tips with someone working the slow and lazy evening shift is a bit beyond comprehension.

Without having been in your particular Starbucks, I can tell you that 1/2 of those working the morning rush bring in 80% of the tips. They're the ones who are dealing with people, not yuppies and they make it their job to remember orders and preferences and names. They greet everyone with a smile and they make the wait a little less long just because of their attitude. The other 1/2 are the ones who send the customers out the door feeling a little worse than they did when they entered. You have no idea how easy it is for someone serving you to make you feel either good or bad about having just paid $5. for a frappucino... Luckily, 50% of your co-workers do.

    Favorite    Flag as abusive Posted 10:28 AM on 04/01/2008
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