1 of 5 | Howard Schultz, a member of the board of directors at Starbucks and former CEO of the company, touted the company's history of "unprecedented" benefits offered to employees, including stock options and healthcare access, during Wednesday's Senate committee hearing on Starbucks' alleged "union busting" activities. Photo by Ken Cedeno/UPI |
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March 29 (UPI) -- Sen. Bernie Sanders grilled former Starbucks CEO Howard Schultz over his former company's alleged anti-union activities during a Senate Health, Education, Labor and Pensions Committee in Washington on Wednesday.
The Vermont senator and chairman of the committee alleges that Starbucks has persistently and aggressively tried to stop its employees from unionizing, breaking the law while doing so. Schultz argued that Starbucks treats its workers fairly and does not need a union.
Sanders opened, stating that 60% of American workers live paycheck to paycheck while union workers make 20% more on average than non-union workers.
"The bad news is that in order to combat this increase in union organizing, corporations have engaged in an unprecedented level of illegal union-busting activities," he said.
"Over the past 18 months, Starbucks has waged the most aggressive and illegal union busting campaign in the modern history of our country," Sanders said. "That union busting campaign has been led by Howard Schultz, the multi-billionaire founder and director of Starbucks who is with us this morning only under the threat of subpoena."
A press release from the committee said the National Labor Relations Board has filed 80 complaints against the coffee giant and more than 500 unfair labor practice allegations are being investigated.
"NLRB judges have found that Starbucks broke the law 130 times across six states since workers began organizing in fall 2021, including firing or forcing out 12 pro-union workers and firing another two because they cooperated with NLRB investigations," the press release states.
Ranking member Sen. Bill Cassidy, R-La., said the hearing is a "smear campaign" and allegations against Starbucks are still pending litigation, according to NBC News.
Schultz touted Starbucks offering shared ownership to all full- and part-time employees since 1991. He also discussed "unprecedented" benefits offered by the company for more than 30 years, including the Starbucks "Bean Stock" stock equity program and healthcare benefits.
"This represents decades of work striving to build a different kind of company that lifts our customers and gives our partners a better chance at life," Schultz said.
Schultz said a Starbucks barista earns $17.50 per hour on average, noting that minimum wage in Sanders' state of Vermont is $13.18.
The Republicans on the committee were largely receptive of Schultz and his position defending the company, with Sen. Mitt Romney applauding Schultz for creating jobs.
"I also think it's somewhat rich that you're being grilled by people who have never had the opportunity to create a single job," the Utah senator said.
Many Starbucks employees have demonstrated outside of their respective stores and staged strikes in recent months over Starbucks attempting to stop them from unionizing. Employees at 113 unionized locations went on strike in November during one of the chains' biggest sales days, Red Cup Day.
Starbucks Workers United organizer and Starbucks employee Gianna Reeve said in a statement to NBC News that she hopes the committee hearing exposes the company for breaking up unions.
"This hearing is making one thing clear -- the only legacy Howard Schultz is leaving Starbucks with is the legacy of being the worst union-buster in modern U.S. history," Starbucks Workers United tweeted.
