Starbucks CEO declines to appear at U.S. Senate labor law hearing

According to a letter seen by Reuters late on Tuesday, Starbucks Corp Chief Executive Howard Schultz declined an invitation from 11 senators to appear on March 9 on the coffee company’s compliance with federal labour law.

The committee’s chair, U.S. Senator Bernie Sanders, along with 10 other members asked Schultz last week if he would participate by responding by February 14th.

Zabrina Jenkins, acting executive vice president and general counsel for Starbucks (NASDAQ:SBUX), stated in the letter that Schultz, who returned to the company as temporary CEO in April 2022, will “completely transition” out of the role next month.

Jenkins stated, “We believe another senior leader with ongoing duties is best placed to address these problems, given the timing of the transition, his relinquishment of any operating role in the company going forward, and what we perceive to be the subject of the hearing”.

Sanders said on Wednesday that he plans to “hold Mr. Schultz and Starbucks accountable for their terrible actions and look forward to seeing him before our committee.” Sanders assumed the chair of the Health, Education, Labor and Pensions (HELP) Committee last month.

Sanders said “if Mr. Schultz believes that a multibillion-dollar corporation like Starbucks can break federal labor law with impunity he is mistaken.”

Starbucks claimed that the ideal person to address employment policy issues is executive vice president and chief public relations officer AJ Jones II, who is readily available. Former Democratic Representative James Clyburn top aide Jones.

Since the end of 2021, Starbucks Workers United has won elections at more than 260 locations in the United States while also losing roughly 70 of them. The union wants better compensation and benefits, better health and safety standards, and safeguards against arbitrary disciplinary and dismissals.

According to a statement made by Starbucks, the company supports its employees’ ability to unionise and participate in authorised labour actions. Since October, the business claims to have held over 80 single-store contract negotiations.