3. Starbucks Corporation (NASDAQ:SBUX)
While the coffee empire may not win any plaudits for its wages, as the average barista earns just $8.79 an hour plus tips, Starbucks Corporation (NASDAQ:SBUX) makes up for it with its benefits packages. Well before Obamacare began requiring it for some businesses, Starbucks Corporation (NASDAQ:SBUX) made health insurance available to part-time employees. That policy has made health insurance available to 95,000 Americans who otherwise wouldn’t be able to afford it, and that, along with benefits such as stock options, are a reason Starbucks Corporation (NASDAQ:SBUX) has half the turnover of the average retailer. In addition, Starbucks employs unique tactics to support its employees, including its Caring Unites Partners Fund, which acts as an in-house safety net for employees facing significant financial hardship because of circumstances outside their control. Most recently, Starbucks Corporation (NASDAQ:SBUX) again bucked the restaurant industry trend, saying it won’t cut employee hours because of Obamacare, as many of its peers are doing. The health-care law requires businesses with more than 50 employees to provide insurance to employees working 30 hours a week or more. CEO Howard Schultz reassured employees that the company will continue to provide coverage for employees working more than 20 hours and their spouses.
Foolish takeaway
It’s important to remember that not all workers at these companies are delighted with their employer, and many demand pay raises and greater benefits just as their fellow restaurant and retail workers do. However, much more so than their peers, these companies are rethinking the traditional model of viewing low-level employees as little more than a production cost. It may be no surprise, then, that all three have distinguished themselves with well-loved brands, outstanding shareholder returns, and a premium valuation. Just look at how all three have trounced the broad market over the past 10 years.
At a time when income inequality and unemployment are at historic highs, these companies offer a reminder that successful businesses can provide value not only for shareholders and consumers, but also for the very employees who make the value chain possible. On this rare day off, it seems worth remembering why we have it in the first place.
The article On Labor Day, 3 Companies Worth Celebrating originally appeared on Fool.com and is written by Jeremy Bowman.
Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Costco Wholesale, Starbucks, and Whole Foods Market.
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