In response to harsh criticism from Sen. Bernie Sanders, I-Vt., who charged that the firm had engaged in “the most vicious and unlawful union-busting campaign in the modern history of our country,” Starbucks’ former CEO Howard Schultz denied breaching the law on Wednesday.
Sanders questioned Schultz during a Senate hearing, and Schultz responded by affirming the right of employees to decide whether or not to unionize and defend the company’s conduct. According to Schultz, Starbucks “has not broken the law.” Let me establish the tone for this right away.
Schultz, who resigned from his post as Starbucks CEO last week after more than 20 years in the role, said that the company had engaged in “good faith” negotiations with its staff members as they sought to form a union and receive collective benefits.
According to the National Labor Relations Board, a federal agency, more than a dozen verdicts by federal regulators ruled that the firm had broken labor laws in its response to a wave of union efforts at its stores. Among the over 9,000 company-owned stores in the US, about 290 have chosen to unionize. But, not a single workplace has seen any employees sign a union contract.
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An administrative judge found earlier this month that Starbucks had engaged in “egregious and pervasive wrongdoing” in an effort to block unionization at some of its outlets. Among other remedies, the court, Michael A. Rosas, ordered the corporation to restore a number of employees, and Schultz read a notice to employees.
According to the NLRB’s regional offices, more than 500 formal complaints of labor law breaches have been made against Starbucks this month. The reinstatement of 22 employees was one of 13 verdicts that called for remedies for Starbucks’ unfair labor practices, according to the NLRB. The agency also stated that some of those rulings have been appealed.
The findings against Starbucks, according to Schultz, are “claims,” and the business is “confident that those allegations will be proven untrue.” Starbucks employee organizing group Workers United said in a statement that it welcomed the Senate hearing as a forum for Schultz to answer for his actions in reaction to the union movement.
A spokesman for Workers United expressed their optimism for change. “We’re confident that this hearing will advance the interests of baristas and workers nationwide.” The statement continued, “We look forward to Howard Schultz being held accountable for his deeds and being made to answer to his extraordinary union-busting campaign under oath.”
Although the company’s workers experienced a previously unheard-of wave of unionization last year, the rate of union victories drastically slowed down over the year. The National Labor Relations Board received union election petitions from an average of 47 Starbucks locations each month during the first half of 2022; however, over the five months that ended in November, that election rate decreased to 11 locations per month, according to NLRB data.
Sanders grilled Schultz on his alleged involvement in the retaliation against unionizing workers. Sanders questioned, “Have you ever been notified of or participated in a decision to terminate a worker who was a member of a union organizing drive?” “I wasn’t,” Schultz retorted.
Sanders continued by inquiring, “Have you ever been made aware of or involved in a decision to reprimand a worker in any way who was involved in a union organizing drive?” I wasn’t, Schultz said in response. The following question from Sanders was, “Have you ever harassed, threatened, or forced a worker into backing a union?”
Schultz replied, “I’ve had talks that might have been taken in a different way than I meant. Schultz continued, “That’s up to the individual who received the material I spoke to them about. Maggie Carter, a barista at the Knoxville, Tennessee, Starbucks branch that became the first in the South to unionize, told ABC News that a union gives employees the best chance to enhance the working environment.
A union, according to Carter, “is the answer because it uplifts employees completely and allows us to function as a unit.” Carter, who spoke before the Senate committee on Wednesday, continued, “You can urge your boss to make adjustments, but they can unilaterally change those modifications if it’s not working for them anymore.”
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“They have to ask you if you have a union contract.” Schultz voiced annoyance with a statement made by Sen. Tina Smith, D-Minn., during questioning that called him a “billionaire.” According to Forbes, Schultz has a net worth of $3.7 billion. He claims the phrase undervalues his success in building his own fortune. Let’s just get to that, billionaire moniker, Schultz said.
I thought my entire existence was focused on realizing the American dream because my parents never owned a home and I started from nothing. Yes, I have billions of dollars, but I earned them; no one gave them to me. Sanders cut off Schultz’s remarks by pointing out that Smith’s time for an inquiry had already run out. In reference to Sanders, Schultz remarked, “It’s your moniker all the time. “It’s unjust,”
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