Ex-Starbucks CEO Howard Schultz set to be grilled by Bernie Sanders in Senate hearing

Howard Schultz, the former CEO of Starbucks, traded barbs with Senator Bernie Sanders and other Democratic lawmakers as they testified in front of Congress in connection with allegations of union-busting at the company on Wednesday.

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A Vermont independent senator, Sen. Bernie Sanders, opened the hearing in a way that stated, "Starbucks is one of the most aggressive union-busting companies in America." Immediately, Schultz responded by refuting Sanders' assertion.

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"I can unequivocally say that Starbucks coffee company has not broken any laws," Schultz said.

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After Starbucks tried to send a subordinate in Schultz's stead after Sanders called for Schultz to publicly respond to worker complaints for months, Sanders threatened to issue a subpoena against Schultz as a result of Starbucks' efforts to send a substitute.

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Nearly 300 Starbucks stores have voted in support of unionization since the first Starbucks store voted to join in late 2022. However, no collective-bargaining agreement has been reached and the company has closed some stores that supported unionization. The National Labor Relations Board has ruled that Starbucks has repeatedly violated labor laws, including firing workers who were pro-union, interrogating them, threatening to rescind benefits if the employees organized, and threatening to call the police on workers. In order to protect its workers, Starbucks fired workers, interrogated them, and threatened to rescind benefits.

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As Schultz continued, he referred to these findings as allegations, stating that the company will continue to pursue all legal avenues, including potentially appealing all the way up to the Supreme Court if necessary, until it exhausts all available legal channels.

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It was announced early this month that a federal judge found Starbucks had engaged in "egregious and widespread misconduct that demonstrated a disregard for the employees' fundamental rights," ordering Schultz to personally read the employees a recitation of their rights under the law. According to the National Labor Relations Board, there have been more than 500 complaints filed against the company by workers and labor officials regarding unfair labor practices.

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Schultz told Sanders on Wednesday that he would not be taking part in the reading, reiterating that the company would continue with its legal appeals. 

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Schultz blames the union for slowing down the negotiations

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Schultz provided prepared testimony before the Senate hearing in which he explained that Starbucks has tried to negotiate with unionized stores but is being blocked by individuals who are pro-union.

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"There have been more than 350 bargaining sessions that we have been able to arrange," Schultz said, adding that Starbucks officials have attended 85 of those sessions in person. "The union representatives, however, have inappropriately demanded multi-store negotiations, delayed or refused to attend meetings, and repeatedly insisted on unlawful preconditions such as 'virtual' bargaining and participation by outside observers, among other things," he added. 

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It is the company's position that "hybrid" bargaining sessions should not be recorded or transcribed because it does not wish to compromise important and personal conversations related to the unique needs of our partners at each store, according to Starbucks spokesman Andrew Trull, in an email.

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"In terms of contract negotiations, the National Labor Relations Board has prohibited any party from requiring recordings or transcripts of the discussions, as this would inhibit the free and open discussions necessary for successful bargaining," Trull said.

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The testimony of Schultz also highlights the benefits Starbucks offers employees, including paid sick leave, paid parental leave, child care benefits, an online college degree for free, and, in the past year, a minimum wage of $15 an hour at the company's stores, as well as the option to tip customers who make credit card purchases. 

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Despite this, Schultz neglects to mention that Starbucks launched credit-card tipping only in stores that were not represented by a union, thus ignoring one of the most important demands of pro-union workers. As reported by More Perfect Union, the National Labor Relations Board filed a complaint this week alleging that Starbucks illegally withheld these benefits from union workers. Starbucks was also accused of breaking the law previously by the labor board when it raised wages and benefits for non-unionized stores only, instead of raising them for all stores.

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As Starbucks' CEO, Schultz has served three terms, the most recent of which lasted from April 20, 2022, to March 20, 2023, ending his tenure two weeks earlier than expected. According to Politico, when Schultz first bought the coffee chain in 1987, he inherited a unionized workforce at the company's roasting plant and store - the union had secured health insurance for part-timers, a Starbucks benefit Schultz frequently promotes in his marketing materials. During his tenure as CEO, Schultz lobbied for major concessions from the workers and was instrumental in the move that led to the union being de-certified.

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When Andrew Ross Sorkin, a columnist for the New York Times, asked Schultz last year whether he would ever accept a union at Starbucks, Schultz quickly responded, "No."