Message to Starbucks employees: Want a raise? Start a riot.
They are cancelling the employee health care plans because they are costing the company a fortune and cannot be sustained. They will give the employees a cash supplement to purchase insurance which will be well short of what any decent coverage will cost.
As for the raise, that is simply because the amount of money they are saving by canceling employer-funded Insurance allows them to give these raises and still save a substantial amount of money.