Howard Schultz, the former CEO of Starbucks, defended the coffee chain’s approach to unionization during a hearing convened by Senator Bernie Sanders. Schultz argued that management-led efforts to persuade employees not to unionize were protected, but he also acknowledged that workers have the right to unionize. The hearing focused on what Sanders called « illegal union busting, » and a former Starbucks employee testified that he was fired for union activism. Schultz denied knowledge of any cases where workers were fired or relocated to other stores because of union activity, but he acknowledged that the company had left out unionized shops from a pay increase announced in May. Schultz also said the company was committed to bargaining in good faith with unions in stores that had voted with organized labor.
Sanders depicted Starbucks as an « egregious » corporate villain on labor law, pointing to numerous complaints from workers that were confirmed as labor law violations by officials at the National Labor Relations Board (NLRB). Schultz received a generally sympathetic response from panel Republicans led by Senator Bill Cassidy, who highlighted complaints from an NLRB whistleblower that the agency had supplied union leaders with confidential information and engaged in other misconduct. Schultz is still on the Starbucks board after stepping down as interim CEO this month.
The hearing highlighted the ongoing tension between workers and management over unionization at Starbucks. While Schultz defended the company’s approach, workers have accused Starbucks of violating US labor law in countering the campaign. The hearing also raised questions about the role of the NLRB in protecting the rights of all parties in a labor dispute. As the debate over unionization continues, it remains to be seen how Starbucks and other companies will respond to workers’ demands for better pay and working conditions.
Keywords: Starbucks, unionization, labor law, Howard Schultz, Bernie Sanders, National Labor Relations Board, workers’ rights, pay increase, bargaining, labor dispute.