Starbucks CEO Schultz—Under Fire For Labor Conflicts—Agrees To Testify Before Senate Panel After Subpoena Threat

Topline

Outgoing Starbucks CEO Howard Schultz will voluntarily testify before a Senate committee later this month, Chair Bernie Sanders (I-Vt.) said Tuesday—avoiding a subpoena from lawmakers investigating the coffee behemoth for alleged unfair labor practices.

Key Facts

Starbucks told Sanders and the Senate Health, Education, Labor and Pensions Committee’s ranking member, Sen. Bill Cassidy (R-La.), that Schultz will testify on March 29 before the committee, in a letter sent Tuesday.

Schultz’s decision to voluntarily appear means the committee will not need to subpoena him, a move the committee was set to vote on Wednesday after he previously declined the committee’s invitation in February.

Sanders, reiterating his concerns that Starbucks has engaged in union-busting tactics, said he “[looks] forward to hearing from Mr. Schultz as to when he intends to end his illegal anti-union activities.”

Starbucks, meanwhile, defended its practices and said it hopes to “foster productive dialogue with the committee about its “culture and priorities, including our industry leading benefits offerings,” General Counsel Zabrina Jenkins wrote to Sanders and Cassidy.

Tangent

Sanders said last week the committee would vote on subpoenaing Schultz and opening an investigation into potential labor laws violations by major corporations, including Starbucks. The company in February declined to put Schultz before the committee voluntarily and instead offered to send a lower-level executive to testify, citing Schultz’s upcoming departure from the company on April 1.

Key Background

Schultz—who served as CEO of Starbucks on and off for decades before temporarily returning last year—led the company during a sweeping unionization effort throughout his second and third runs as CEO, and is opposed to the organizing efforts. Since the first of Starbucks’ 9,300 stores voted to unionize in 2021, 282 others have cast votes that have been certified by the National Labor Relations Board. The union and its employees have filed hundreds of complaints against the company for unfair labor practices and in some cases, the National Labor Relations Board has ruled that it illegally fired employees engaged in the union efforts. Starbucks has also filed complaints against the union, accusing it of intimidating workers who are not involved in organizing. Schultz has defended Starbucks’ company culture and argued a union isn’t necessary.

Forbes Valuation

We estimate Schultz to be worth $3.8 billion.

Further Reading

Starbucks CEO Howard Schultz Could Face Subpoena To Testify Before Congress, Bernie Sanders Says (Forbes)

Starbucks’ New CEO: Here’s What To Know About Laxman Narasimhan (Forbes)

Howard Schultz’s Third Run As Starbucks CEO Brews Up Succession Questions (Forbes)