If Starbucks wants to make money in China, it needs to pay its drivers a decent wage.
It can’t simply pay its suppliers a decent price for the product.
And Starbucks isn’t going to do it.
Its labor practices have come under intense scrutiny in China since its announcement of a new labor agreement last year, which included a clause barring workers from joining a union.
The new agreement was criticized for violating China’s labor laws.
In a statement to Reuters on Monday, Starbucks said the company has “serious concerns” about the agreement, and has agreed to end the practice of paying drivers in cash.
The company also said it has begun to hire more drivers.
It also said that it will cut wages for drivers and other service workers at its outlets and other stores, and will also be implementing “several measures to reduce the number of people being paid below the minimum wage.”