A few weeks after the National Labor Relations Board accused Starbucks of “egregious and widespread wrongdoing” to prevent employees from unionising, the company’s veteran CEO Howard Schultz answered questions before the Senate’s Health, Education, Labor and Pensions Committee on Wednesday. Vermont’s Committee Chair Bernie Sanders quizzed Schultz on the company’s history of union-busting and urged a halt to retaliation against employees.
Since 2021, approximately 300 Starbucks shops have voted to unionise, but the company has responded by, among other things, firing several organisers and closing unionised outlets. Schultz is worth more than $3 billion and has overseen Starbucks for a significant portion of its history, most recently as temporary CEO for the past year while a permanent replacement was sought. He resigned on March 20. We present snippets from the hearing.
SEN. BERNIE SANDERS: Are you aware that NLRB judges have decided that Starbucks has violated federal labour law more than 100 times in the last 18 months, more than any other company in the United States?
HOWARD SCHULTZ: Sir, Starbucks Coffee Corporation has categorically not violated the law, and let me to establish the tone immediately.
Are you aware that on March 1, 2023, an administrative law court found Starbucks guilty of “egregious and widespread misbehaviour,” “widespread coercive behaviour,” and “a general disrespect for the employees’ fundamental rights” in a union-organizing drive that began in Buffalo, New York in 2021? Are you conscious of this?
HOWARD SCHULTZ: I am aware that these are allegations. Congress has established a procedure that we are following, and we are sure that these charges will be debunked.
Senator Bernie Sanders: Okay. Before you answer the following questions, Mr. Schultz, I would want to remind you of 18 U.S.C. Section 1001 of the Code forbids knowingly and intentionally making a false statement.
HOWARD SCHULTZ: I see your point.
SEN. BERNIE SANDERS: Were you ever notified of or involved in a decision to terminate an employee who participated in a union-organizing effort?
I was not, HOWARD SCHULTZ replied.
SEN. BERNARD SANDERS: Have you ever been notified of or involved in a decision to penalise a worker who participated in a union-organizing effort?
I was not, HOWARD SCHULTZ replied.
Have you ever threatened, bullied, or intimidated an employee for backing a labour union?
HOWARD SCHULTZ: I have had exchanges that could have been misconstrued. That is up to the individual who received the information I discussed with him.
SENATOR BERNARD SANDERS: Were you advised of or involved in the decision to withhold benefits from Starbucks employees in unionised outlets, such as greater pay and faster sick leave accrual?
HOWARD SCHULTZ: My belief, when we developed the perks in May, one month after I returned as CEO, was that we did not have the unilateral power under the law to provide these benefits to employees who were interested in forming a union. …
Under your leadership, Starbucks has repeatedly declined to negotiate with any of the 7,000 workers in over 300 shops who have chosen to represent themselves through a union. More than 460 days have passed since the election of the first set of workers to get a contract. Mr. Schultz, can you immediately agree that Starbucks will exchange proposals with the union within 14 days of this hearing, something it has refused to do for more than 450 days, so that serious progress can be made to negotiate a first contract in good faith? Will you make this pledge?
Due to the arrangement between the union and the NLRB in Buffalo to negotiate one store at a time, HOWARD SCHULTZ and I have met over 85 times for a single store. We’ve tried to schedule over 350 individual meetings. We’ve stated publicly, and I’ll reiterate it here, that we believe face-to-face conversations are the best course of action. And the reason I want to make this argument is because Starbucks managers have been outed on social media for safety issues. There are difficulties with privacy. We do not wish to use Zoom. We are willing to meet in person to discuss the single-store issue.
SEN. BERNIE SANDERS: Will you guarantee to this committee that you will exchange proposals with the union so that we can make significant progress?
HOWARD SCHULTZ: We will continue to negotiate in good faith on a store-by-store basis. This is what we will do.
