- Starbucks CEO Howard Schultz has agreed to testify at a U.S. Senate hearing over the coffee chain’s alleged union busting after pressure from Senator Bernie Sanders.
- Schultz is now scheduled to appear at the hearing on March 29.
- Since Schultz returned to power at the company last April, Starbucks has taken a more aggressive stance against union pressure in its cafes.
Starbucks CEO Howard Schultz has agreed to testify at a U.S. Senate hearing over the coffee chain’s alleged union busting after pressure from Senator Bernie Sanders.
The Senate Committee on Health, Education, Labor and Pensions, or HELP, was scheduled to vote Wednesday morning on whether to subpoena Schultz, who had earlier denied a request to appear. Sanders, a Democratic Socialist representing Vermont, is chairman of the committee.
Schultz is now scheduled to appear at the hearing on March 29.
“Through the agreement reached today, our testimony will be focused on fostering a better understanding of our partner-centric culture and priorities, including our industry-leading benefit offerings and our long-standing commitment to supporting the shared success of all partners,” said Starbucks. statement.
In February, Starbucks general counsel wrote in a letter viewed by CNBC that since Schultz is stepping down as interim CEO in March, it would make more sense to have another senior executive with current responsibilities testify at a hearing originally scheduled for March 9. Newcomer Laxman Narasimhan is due to take over as chief executive in April.
“[Schultz] will remain on the board of directors, today he is the CEO, and he will be the CEO when we invited him … it is clear to everyone that it is Mr. Schultz who determines the policy of this company, ”said Sanders at a press conference. The conference took place on Tuesday.
As of Tuesday, 290 Starbucks locations voted to unionize, according to the National Labor Relations Board. More than a year after Starbucks Workers United won its first election, no cafes have signed with Starbucks yet.
Since Schultz returned to leadership last April, Starbucks has taken a more aggressive stance in its fight against union pressure. The union has filed more than 500 allegations of unfair labor practices with the NLRB, including allegations of retaliatory layoffs and store closures. The company also raised wages and improved benefits for non-union workers.
Starbucks has filed more than 100 of its own complaints against the union, alleging intimidation and harassment.
Credit: www.cnbc.com /