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Howard Schultz on Health Care

 


Expand coverage to include part-time employees

We expanded our health-care coverage to include part-timers who worked as little as 20 hours a week. In the late 1980s, employer generosity was hopelessly out of fashion. Corporate raiders and soaring health-care costs had forced many American executives to reduce benefits.

At the same time, health-care bills were soaring to unmanageable heights. Few companies covered part-time workers at all, and those who did restricted benefits to those working at least 30 hours a week. Most executives were actively looking for ways to contain their medical insurance expenses.

Starbucks went the other direction: Instead of cutting health-care benefits, we found a way to increase ours. I saw my plan not as a generous optional benefit but as a core strategy. Treat people like family, and they will be loyal and give their all.

We began offering full health benefits to all part-timers in late 1988. To my knowledge, we became the only private company--and later the only public company--to do so.

Source: Pour Your Heart Into It, by Howard Schultz, p.126-128 , Jan 6, 1999

Offer employee coverage for terminal illnesses

The true value of our health-care program struck me most deeply in 1991, when we lost one of our earliest & most devoted partners, Jim Kerrigan, to AIDS. Jim started as a barista in 1986 and rose to the position of store manager.

Then one day, Jim came into my office and told me he had AIDS. It took incredible courage. I had known he was gay but had no idea he was sick. His disease had entered a new phase, he explained, and he wouldn't be able to work any longer.

Starbucks had no provision for employees with AIDS. We had to make a policy decision. Because of Jim, we decided to offer health-care coverage to all employees who have terminal illness, paying medical costs in full from the time they are not able to work until they are covered by government programs, usually 29 months.

After his visit to me, I spoke with Jim often and visited him at the hospice. Within a year, he was gone. I received a letter from his family afterward, telling me how much they appreciated our benefit plan.

Source: Pour Your Heart Into It, by Howard Schultz, p.128-129 , Jan 6, 1999

Other governors on Health Care: Howard Schultz on other issues:
WA Gubernatorial:
Christine Gregoire
Jay Inslee
WA Senatorial:
Maria Cantwell
Patty Murray

Newly elected Nov. 2012:
IN: Mike Pence (R)
NC: Pat McCrory (R)
NH: Maggie Hassan (D)
MT: Steve Bullock (D)
WA: Jay Inslee (D)

Re-elected 2012:
DE: Jack Markell (D)
MO: Jay Nixon (D)
ND: Jack Dalrymple (R)
UT: Gary Herbert (R)
VT: Peter Shumlin (D)
WI: Scott Walker (R)
WV: Earl Ray Tomblin (D)

Up for re-election 2013:
NJ: Chris Christie
VA: Bob McDonnell
Up for re-election 2014:
AK: Sean Parnell
AL: Robert Bentley
AR: Mike Beebe
AZ: Jan Brewer
CA: Jerry Brown
CO: John Hickenlooper
CT: Dan Malloy
FL: Rick Scott
GA: Nathan Deal
HI: Neil Abercrombie
IA: Terry Branstad
ID: Butch Otter
IL: Pat Quinn
KS: Sam Brownback
MA: Deval Patrick
MD: Martin O'Malley
ME: Paul LePage
MI: Rick Snyder
MN: Mark Dayton
NH: Maggie Hassan
NM: Susana Martinez
NV: Brian Sandoval
NY: Andrew Cuomo
OH: John Kasich
OK: Mary Fallin
OR: John Kitzhaber
PA: Tom Corbett
RI: Linc Chafee
SC: Nikki Haley
SD: Dennis Daugaard
TN: Bill Haslam
TX: Rick Perry
VT: Peter Shumlin
WI: Scott Walker
WY: Matt Mead
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Page last updated: Apr 25, 2013