Starbucks has been in the news in recent weeks for all the wrong reasons, most notably their tax avoidance practices that the House of Commons’ Public Accounts Committee recently branded as ‘immoral’. It is a fact that Starbucks has paid a mere £8.6m in UK tax over the past 13 years on sales of £3.1bn.
Starbucks has announced publicly that it will change some of its practices with the aim of paying more tax in the UK. However at the same time Starbucks recently announced to its staff that it would be issuing revised employment contracts to include the removal of the current paid 30 minute lunch break and paid sick leave on the first day of sickness absence. Other changes include modified cash incentives for future ‘Managers of the year’ programmes and the removal and dumbing down of a bonus scheme for female employees returning from maternity leave.
It therefore seems that Starbucks are about to court more controversy which will affect its public reputation in that that they are willing to pay more tax in the UK but at the apparent expense of its workforce.