Following a fiscal year with record sales, Starbucks announced it will raise hourly wages and benefits for most of its U.S. workers.

The company announced Monday that most U.S. hourly workers will see at least a 3% incremental pay increase, beginning January 1. Employees with two to five years of service will get at least a 4% increase, and workers there for five years or longer will get at least 5%, according to the company.

Starbucks says it currently pays its hourly workers an average of $17.50 an hour. Last week, the company announced that by the end of 2025 fiscal year, it expects to double hourly income from 2020 through more hours and higher wages.

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Starbucks fight with union continues

But Starbucks said these pay increases and benefits may not be "unilaterally implemented" for unionized stores, as tensions between the company and union continue.

At least 366 Starbucks stores in the U.S. have voted to unionize since 2021, according to the National Labor Relations Board, and Starbucks has yet to reach a labor agreement at any of those stores with Workers United, the union representing the workers.

Starbucks operates around 9,600 stores in the U.S., with another around 6,600 licensed stores.

Starbucks also announced that hourly workers will accrue paid vacation time just 90 days after a hire instead of a year, beginning in February, a benefit that will be only available to workers at non-union stores.

In a statement shared with USA TODAY, Workers United said the new benefits are "a victory for our campaign, and show that when workers join together and raise our voice, we can force powerful companies to make changes they'd never make if we did not stand up."

But the union also said in the statement that the denial of some new benefits to unionized stores is against the law and a "clear continuation" of an "illegal union-busting campaign," and said it will file an unfair labor practice charge.

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