Yesterday at a Senate Health Committee hearing, Sen. Patty Murray (D-WA) questioned ex-Starbucks CEO Howard Schultz about union practices.
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Senator Murray and Starbucks leadership discuss the company's response to unionization efforts. While both agree workers have the legal right to unionize, Murray highlights numerous NLRB complaints and reports of employee retaliation, while Starbucks denies breaking the law and maintains a preference for direct relationships with its staff.
But I think you know that decision is up to workers under federal law.
I just have been disappointed, I have to tell you, from a number of my constituents I've
been hearing from about some of the widespread anti-union efforts at Starbucks, including
in Washington State, where the NLRB has certified 19 elections, as you know, at Starbucks stores.
They have issued 71 complaints covering 31 unfair labor practice charges, and NLRB judges
have issued two decisions now, finding that Starbucks violated federal law.
So let me just ask you a simple question.
Do you agree that it is workers who get to decide whether they want a union?
Senator Murray, I agree that the person at Starbucks has the right under the law to decide
whether or not they want to join a union, and Starbucks Coffee Company also has the
legal right to provide a vision for our employees, which currently represent 99% of the 250,000
who wear the green apron, that our vision is a preference to maintain our direct relationship.
And in terms of what you said, as I said to Chairman Sanders, those are allegations and
Starbucks Coffee Company unequivocally has not broken the law.
Let me just share with you, and I heard you answer Senator Hickenlooper with treating
your employees with dignity and respect, which I appreciate, but I am hearing from a number
of folks really troubling reports about Starbucks refusing to allow credit card tipping, cutting
employee hours, holding the loss of critical benefits like healthcare, insurance, and gender
affirming care over the heads of employees who are trying to exercise their rights.
And I've even heard reports, so you know, about uncertainty for union employees about
whether or not they would receive abortion travel benefits, which all your workers receive.
I'm concerned when I hear from my constituents about unfair threats of any kind or denying
benefits unfairly, even when the union agrees to waive its right to bargain.
I would assume you would agree that that doesn't constitute treating someone with dignity or
respect if they are being threatened.
Senator Murray, you and I have known each other for quite a while, you being the Senator
of our home state.
I think you have many times actually talked about Starbucks as a model employer in many
of the meetings that you've had and speeches that you've given.
I do take offense, I have to admit, because it's quite personal when you bring up things
that you've heard that are not true.
We have never ever taken any benefit away, and we never would, of anyone who was interested
in joining a union.
We simply have said that under the law, our understanding is we did not have the right
to provide incremental benefits during the bargaining process.
But Howard Schultz, the leadership team of Starbucks, the board of directors, some of
whom are here today, would never take benefits away of any kind of someone who was involved
in trying to join a union.
Thank you for the answer.
I'm giving you the question so you have a right to respond, that's why I'm asking.
But you should know that those are some of the things that I hear and I wanted to hear
your response.
And I've also heard allegations that Starbucks has interfered with employees' ability to
testify, including in Seattle, where an administrative law judge found that Starbucks did that.
Can you respond to that charge?
I have no knowledge of that, Senator Murray.
Okay, thank you.
Thank you very much.
Senator Cassidy.
I defer to Senator Tuberville.
Thank you, Chairman.
Thank you, Mr. Cassidy.
Mr. Schultz, thank you for being here.
Thank you.