Starbucks CEO Shultz Submits To Pressure, Will Testify Before Senate Over Union Busting Concerns
On the eve of a potential subpoena vote, Starbucks CEO Howard Shultz agreed to testify before a Senate committee led by Sen. Bernie Sanders (I-Vt.) regarding questions about the company's ongoing anti-union efforts.
Sanders announced Shultz's decision to testify on Tuesday, expressing clear joy that the longtime executive reneged on his previous stance. "I'm happy to announce that Howard Schultz, the CEO, and founder of Starbucks, has finally agreed to testify before the Senate HELP Committee," Sanders said in a statement.
Sanders chairs the Senate Health, Education, Labor and Pensions Committee, and has been adamant in his pursuit of Shultz. When Starbucks declined to offer Shultz for testimony in February, Sanders threatened to subpoena, with a vote previously scheduled for March 8.
At the time, Starbucks' acting executive vice president and general counsel, Zabrina Jenkins, wrote to the committee explaining why Shultz would not be the appropriate representative for the company before the Senate due to his impending "transition" away.
"Given the timing of the transition, his relinquishment of any operating role in the company going forward and what we understand to be the subject of the hearing, we believe another senior leader with ongoing responsibilities is best suited to address these matters," Jenkins wrote.
Despite Shultz taking an interim tag upon his return to the company in April 2022, he will now be forced to answer questions in a hearing scheduled for March 29.
"I look forward to hearing from Mr. Schultz as to when he intends to end his illegal anti-union activities and begin signing fair first contracts with the unions," Sanders said.
Last week, a National Labor Relations Board (NLRB) judge ruled that Starbucks committed "egregious and widespread" violations of federal law in its campaign to halt unions, ordering the company to give back pay and damages to workers involved in national organizing efforts.
The organizing union has won elections at more than 260 U.S. stores as it pushes for increased pay and benefits, improved health and safety conditions, and protections against unfair firings and discipline.
"Let's be clear. In America, workers have the constitutional right to organize unions and engage in collective bargaining to improve their wages and working conditions," Sanders said. "Unfortunately Starbucks, under Mr. Schultz's leadership, has done everything possible to prevent that from happening."
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