STORY : Former Starbucks CEO Howard Schultz appeared on Capitol Hill Wednesday to defend himself and the coffee chain against allegations of "union busting" during a U.S. Senate committee hearing.
SANDERS: “Over the past 18 months, Starbucks has waged the most aggressive and illegal union busting campaign in the modern history of our country.”
In a heated exchange, Sen. Bernie Sanders, chair of the chamber’s Health, Education, Labor, and Pensions Committee, grilled the Starbucks billionaire founder on claims made by the National Labor Relations Board… which alleged that Starbucks violated federal labor law by offering new benefits - like higher wages and student loan repayment tools - only to non-unionized stores.
SANDERS: “NLRB (National Labor Relations Board) judges have ruled that Starbucks violated federal labor law over 100 times during the past 18 months, far more than any other corporation in America.”
SCHULTZ: “Sir, Starbucks coffee company unequivocally, and let me set the tone for this very early on, has not broken the law.”
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.
SAXTON: “In April, our store won our election by a landslide, 26 to 5. Despite all of the threats and intimidation.”
Among other who testified were Jaysin Saxton, a former Starbucks employee from Georgia, who alleged that managers watched and listened to conversations from workers who wanted to form a union.
SAXTON: “…We were constantly being watched and managers listened in on our conversations through our headsets.”
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.
Republicans at the hearing defended Schultz, praising the company's competitive wages, health benefits, employee stock purchase program and other perks.
Starbucks' shares closed up nearly 2% on Wednesday.
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