Sulzberger, A.G. (2009, August 18). Starbucks Workers

¶ … Sulzberger, A.G. (2009, August 18). Starbucks workers protest rise in health premiums.

The New York Times. Retrieved July 11, 2011 at http://cityroom.blogs.nytimes.com/2009/08/18/starbucks-workers-protest-rise-in-health-premiums/

Starbucks has long promoted itself as an ethical company. While some of its prices are extremely high, such as its famous three and four-dollar lattes and Frappucinos, it has always used the fact that it provides its workers with a fair wage and benefits as an important 'selling point' for its brand. However, Starbucks workers are being called upon to pay a much larger premium for their health insurance than ever before. Even the cost of the most basic healthcare plan has been raised from $12.50 to $20, which is extracted from each worker's paycheck. The annual sign-up cost has been raised from $100 to $200 (Sulzberger 2009). For a part-time, minimum wage employee struggling to get by in a major metropolitan area, this cost could be prohibitive and calls into question Starbucks' claim to be an ethical company that provides care for all of its employees.

The main conflict is between workers, many of whom say they chose to work for Starbucks precisely because of its promise that it would pay workers a living wage with benefits, and Starbucks managers, who claim that too many of its profits are being eaten away by healthcare expenses. Unlike Starbucks' commitment to fair trade, this issue has generated little outrage in the larger public, given that all workers' healthcare costs are increasing and employees are being forced to pay more out-of-pocket expenses. "Medical inflation and the continuing trend of rising health care costs" are causing overall healthcare expenses in America to rise -- and premiums as well (Koff 2010).

Businesses like Starbucks argue that their primary responsibility is to make a profit. Starbucks workers argue that for low-wage workers such costs are prohibitive and it is unethical for the company to advertise that it offers comprehensive coverage to all. The statistics do not lie: "65% of its employees are eligible for health benefits after two months on the job, and 65% of this group, or about 42% of its total workforce, enroll," far less than Starbucks' compassionate image might suggest (Big companies, 2005, The Wall Street Journal).