Starbucks won't cut benefits with Obamacare
The CEO of Starbucks acknowledged that "Obamacare" might increase insurance costs, but said the company's benefits are non-negotiable. Other U.S. companies have cut staff or benefits in anticipation of next year's health care overhaul, but Howard Schultz said Starbucks' insurance plans will stay in place for everyone.
The coffee chain is unique in its policy: even part-time workers are eligible for insurance. In 2010, benefits cost the company 300-million dollars, more than it paid for coffee, but Schultz said the benefits will remain a cornerstone of the company's compensation for its 160-thousand workers.
The comments put Schultz in stark contrast with other business leaders, who have taken drastic measures to reduce costs next year. Last week, UPS said it will cut insurance to the spouses of 15-thousand workers. Last year, pizza franchise Papa John's announced plans to cut worker hours in order to dodge the employer mandate