Please try another search
© Reuters. FILE PHOTO: Starbucks Chairman and CEO Howard Schultz looks on during its Annual Meeting of Shareholders in Seattle, Washington March 21, 2012. REUTERS/Robert Sorbo/File Photo
2/2
By David Shepardson and Hilary Russ
WASHINGTON/NEW YORK (Reuters) -Starbucks' former Chief Executive Howard Schultz defended himself and the coffee chain against allegations of "union busting" at a U.S. Senate committee hearing in Washington on Wednesday.
The Seattle-based company has previously denied allegations that it illegally fired pro-union baristas or spied on workers as hundreds of U.S. stores organized unions starting in late 2021.
It also says it did not violate federal labor law by offering some new benefits - including higher wages, student loan repayment tools, and a savings account program - only to non-unionized stores, as the National Labor Relations Board (NLRB) has alleged.
Senator Bernie Sanders, chair of the Senate Health, Education, Labor, and Pensions Committee, told Schultz that "Starbucks (NASDAQ:SBUX) has waged the most aggressive and illegal union busting campaign in the modern history of our country."
"These are allegations and Starbucks has not broken the law," Schultz told Sanders during the hearing.
Starbucks' shares closed up 1.93% at $100.62 as restaurant stocks ended broadly higher. Analysts at two Wall Street firms, TD Cowen and BTIG, reiterated their high ratings for the company and said respectively that the hearing was a "non-event" and "accomplished little."
Schultz, who left his third stint as CEO on March 20, said he did not have any direct role in firing workers who supported the union or closing unionized stores. He remains on the company's board.
His return to Starbucks as its interim leader in April 2022 was "95% focused on the operations of the business" and his involvement in the company's union strategy has been "de minimis," Schultz said.
Republicans defended Schultz, praising the company's competitive wages, health benefits, employee stock purchase program and other benefits.
Republican Senator Mitt Romney noted "some irony to a non-coffee-drinking Mormon conservative defending a Democrat candidate for president in perhaps one of the most liberal companies in America."
Other senators questioned why it was taking so long for Starbucks to reach contracts with its stores in Buffalo, New York, which were the first in the United States to unionize.
"The delay is truly unacceptable," Senator Maggie Hassan said.
But the company and union disagree over whether negotiation sessions can be conducted via Zoom video calls.
Schultz reiterated that the company has "shown up about 85 times to have a face-to-face meeting" and tried to set up 365 additional meetings.
"We are ready and able to have face-to-face negotiations, and will do so at a moment's notice," he said.
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.