Howard Schultz Slams 'Some Of The Propaganda That's Floating Around' About Starbucks And Unions

Great. Thank you very much, Mr. Chair and Ranking Member. Mr. Schultz, I appreciate you coming before us. I realize that you've spent your life creating one of the most successful brands in American history. You mentioned the long-held aspiration to make Starbucks a company that balances profitability with social conscience. I think that brand is exceedingly attractive, especially to young people, and I think it's part of your success. In many ways, the ability of Starbucks to attract young workers and have them believe in the brand and the vision is a big part of that success. Part of what this group believes is that the partnership between the company and the workers is a key to success for any successful company. Many folks who work at Starbucks came because they wanted a chance to work for a company that prioritizes earnings and benefits, wellness, and your testimony described in some detail that you're near the top of that ladder. We also heard over the last few weeks from other workers, some from Colorado, who told us they came to work for the partner-centric model but were disappointed because they wanted that opportunity to be part of a union and told us that disillusionment has been very hard for them. I guess the question I would ask first is that that appearance that so many of the employees have of their organizing efforts are being interfered with seems at odds with the commitment to the partner model and the worker welfare. How do you respond to those workers who appreciate the Starbucks model but would like to be able to organize with less confrontation? Thank you for the question and the opportunity to answer that without some of the propaganda that has been floating around. I've built my life trying to create a company that values every single person with dignity and respect and puts on the green apron. That has not changed as a result of 1% of 3,400 people out of 250,000 who want to join the union. We've said publicly we respect the law, we respect their right, and we want to treat everyone with respect and dignity. However, I have the right and the company has the right to have a preference. Our preference is to maintain the direct relationship we've had with our employees that we call partners. We have a track record that demonstrates the values that we have shown and the value that we have created. We maintain a level of respect for everyone who wears the green apron. Thank you. There's been considerable questions about the shrinking middle class. I'm not asking you to be an economist in this sense, although you clearly know more about economics than I will ever know. When you look at the charts, and we've got a chart behind me, it demonstrates that as the middle class has shrunken and as income inequality has increased dramatically, it has directly coincided with the decline in unions. I certainly respect the desire to be directly connected with all your employees, but in many ways, that right to organize and that opportunity for people to be part of a union is a crucial building block for the middle class that I think gave this country stability that we don't see in the same way that we used to. At its core, I think union organizing is about having a greater say in their workplace, and I think everybody always wants that. In fact, some of the studies show that entrepreneurs start new businesses not necessarily to make money, but to have someone bossing them around. What do you say to the workers who want to join together with their peers to unionize their workplaces, despite however great Starbucks has been for them? I've said before, and I want to repeat it, I think unions have served an important role in American business for many years. If you look at the 50s and the 60s, unions generally were working on behalf of people in a company where those people have not been treated fairly, where there's been, in some cases, nefarious acts by the employer taking advantage of the employee. I can only say in my own company, based on the track record that we've had, we do not believe, and it's our preference, that we are that kind of company. We treat our people fairly. We do nothing that is nefarious. We put our people first. We make decisions based on our people, and we have the track record to prove it. Starbucks is probably one of the best, if not the best, first job in America. As I said in my opening statement, 65% of baristas are now managers. I walked into a store an hour ago, just at 24th and M. Just walked in. Was met by a guy named Nico. Never met him before. 22 years with Starbucks, and he tells me his story. He came from Senegal. He's an American citizen. Started as a barista. Became a manager, district manager. And the thing that he wanted me to know, this is an hour ago, is I bought a house, and I have a car. And I raised two kids because of Beanstalk at Starbucks. Now, you put that overall. In the last 15, 20 years, over $2 billion of equity because of Beanstalk. 14% of people... Senator Hickenlooper, your time has expired. But it's an important point. $2 billion of equity because of everyone being an owner... Senator Cassidy. It's unprecedented. And that's why Starbucks doesn't need a union. Senator Cassidy. Mr. Chairman, I will respect...