Former Starbucks CEO Howard Schultz faced intense questioning from the Senate health, education, labor and pensions committee over his company's role in a unionization campaign. Senator Bernie Sanders (I-Vt.) accused Starbucks of delaying contract negotiations with unionized workers, as well as violations of labor laws including the firing of labor organizers and closing unionized stores. Schultz denied any wrongdoing and stated that Starbucks provides its employees industry-leading wages and benefits.
At least 293 of Starbucks' 9,000 company-owned US stores have voted to unionize and Starbucks Workers United, the labor group organizing the stores, has yet to reach a contract agreement with a Starbucks store. Schultz stated that only 3,400 of the 250,000 US employees have chosen to join a union. Starbucks is appealing the charges of labor laws violations.
Schultz's successor Laxman Narasimhan believes that Starbucks functions better without unions. During the hearing, Schultz denied involvement in decisions to fire workers, threaten or coerce workers who support unions or close stores that voted unionized, claiming that his involvement in union activities was "de minimis".
Two Starbucks Union members testified at the hearing and dozens of Union members from across the country attended in support. Republicans on the committee praised Starbucks'contributions to the U.S. Economy.
Starbucks spokesman Andrew Trull stated that the company strongly denies any wrongdoing and that the NLRB is trying to use cases against Starbucks to change existing labor law. Starbucks prefers a “direct relationship with our partners” over unionization, Trull said.
The hearing has the potential to shape public opinion on unionization of Starbucks.