Tuesday, 02 January 2024 12:17 GMT

Howard Schultz Faces Congressional Hearing on Union-Busting Allegations at Starbucks


(MENAFN) Former Starbucks CEO Howard Schultz is set to appear before a congressional hearing on Wednesday alongside Senator Bernie Sanders and other lawmakers. The focus of the hearing is allegations of union-busting at the coffee chain, with Sanders calling for Schultz to publicly respond to worker complaints. Sanders had even threatened to subpoena Schultz after Starbucks tried to send a subordinate in his place. The hearing, titled "No Company Is Above the Law: The Need to End Illegal Union Busting at Starbucks," is scheduled for 10 a.m. on Wednesday.

According to the Senate's Health, Education, Labor and Pensions committee, Starbucks has become "the most aggressive union-busting company in America." Democrats on the panel have criticized the company's "scorched-earth approach" to labor relations. Since the first Starbucks store voted to unionize in late 2022, nearly 300 Starbucks stores have taken that step. However, none has yet negotiated a collective-bargaining contract, and the company has closed some pro-union stores.

Judges have ruled that Starbucks repeatedly broke labor laws, including by firing workers, interrogating them, threatening to rescind benefits if employees organized, and threatening to call the police on a worker. The National Labor Relations Board (NLRB) has confirmed these allegations through a spokesperson. The company has faced over 500 complaints of unfair labor practices filed by workers and labor officials, according to the NLRB.

Earlier this month, a judge found that Starbucks engaged in "egregious and widespread misconduct demonstrating a general disregard for the employees' fundamental rights." The judge ordered Schultz to personally read the employees a recitation of their rights under the law. Schultz's appearance before the congressional hearing is a crucial opportunity for him to address the allegations of union-busting at Starbucks and respond to the concerns of workers and labor officials.

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