Advertisment

Sen. Bernie Sanders confronts former Starbucks CEO Howard Schultz over alleged anti-union actions

author-image
BNN Correspondents
New Update
Image credit: Al Drago/Bloomberg/Getty Images

A Senate committee hearing titled “No Company Is Above the Law: The Need to End Illegal Union Busting at Starbucks,” took place on Wednesday.

Advertisment

Senator Bernie Sanders, who has been vocal about criticizing former Starbucks CEO Howard Schultz over the company’s apparent attempts to stop its own workers from unionizing, questioned Schultz during the hearing.

Schultz is currently the company’s chairman emeritus. Sanders had accused Schultz of “illegal anti-union activities,” saying that “the fundamental issue we are confronting today is whether we have a system of justice that applies to all, or whether billionaires and large corporations can break the law with impunity.”

Schultz has denied breaking the law and referred to allegations against the company as “allegations.” Since December 2021, nearly 300 Starbucks stores have voted to unionize and been certified by the National Labor Relations Board, a relatively small number compared to the roughly 9,300 company-operated Starbucks stores in the United States.

Advertisment

NLRB administrative law judge Michael Rosas recently said that Starbucks had displayed “egregious and widespread misconduct” in its dealings with employees involved in efforts to unionize Buffalo, New York, stores, including the first location to unionize.

Starbucks repeatedly sent high-level executives into Buffalo-area stores in a “relentless” effort, the judge wrote, which “likely left a lasting impact as to the importance of voting against representation.”

Schultz declined to commit to exchanging proposals with the union within two weeks of the hearing, saying instead that “we will continue to negotiate in good faith.”

Advertisment

In prepared remarks for the hearing, Schultz said, “Starbucks has complied with the National Labor Relations Act,” by recognizing unions after they are certified by the NLRB.

Regional NLRB offices have issued dozens of complaints against the company, covering over 200 unfair labor charges.

Schultz served three stints as Starbucks’ chief executive, most recently as interim CEO from April 2022 until earlier this month, when he handed over to current CEO Laxman Narasimhan ahead of schedule.

Advertisment
Advertisment