Monday, December 10, 2012

Starbuck's Taxes - Who's paying for them?

So out of the goodness of their hearts (and out of their non-existent profits) Starbucks announce they will voluntarily pay £10 million extrra in tax having previously just paid £8.6m in UK tax over the past 13 years on sales of £3.1bn.  But who really is paying it?

Starbucks staff at their 750 outlets, "baristas",  have been told to sign revised employment terms, which include the removal of paid 30-minute lunch breaks and paid sick leave for the first day of illness. Some will also see pay increases frozen. It also include the removal of cash incentives for becoming manager or partner of the year in favour of the award of a plaque and the removal of a bonus scheme for women returning after they have had a baby because "it is not considered a valued benefit". Even minor perks are being ended such as hampers to new mothers whi instead get a "a card and Starbucks baby grow and bib" while birthday cards are stopped as are congratulations cards on the anniversary of the first four years of service. Starbucks managers have reportedly told staff they must not discuss the new terms, and staff are afraid they could be dismissed if they do so. Other benefits are unchanged. Staff who complete five years of service will continue to receive a pen and the right to take four weeks off without pay.

So who is bearing the cost of the company's increased tax bill?

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