Starbucks (NASDAQ:SBUX)
According to the letter reviewed by Reuters late on Tuesday night, Starbucks (NASDAQ:SBUX) Chief Executive Howard Schultz refused an offer from 11 senators to testify on March 9 on the coffee company’s compliance with federal labor law. The request came in the form of a letter. As a result, Starbucks stock declined in the market.
U.S. Senator Bernie Sanders, who leads a committee on labor problems, along with ten other committee members, urged Schultz to respond by February 14 on whether or not he will participate in the investigation last week.
According to the letter, Starbucks acting executive vice president and general counsel, Zabrina Jenkins, said that Schultz would “completely transition” out of the post within the next month. Schultz rejoined Starbucks stock in April 2022 as a temporary CEO.
According to Jenkins’s written statement, “given the timing of the transition, his relinquishment of any operating role in the company going forward, and what we understand to be the subject of the hearing, we believe another senior leader with ongoing responsibilities is best suited to address these matters.”
Sanders, who has been leading the Health, Education, Labor, and Pensions (HELP) Committee since this month, stated on Wednesday that he intends “to hold Mr. Schultz and Starbucks accountable for their unacceptable behavior and look forward to seeing him before our committee.” Sanders took over the chairmanship of the HELP Committee earlier this month.
Sanders said, “if Mr. Schultz thinks that a multibillion-dollar firm like Starbucks can flout federal labor law with impunity, he is misguided.” [Case in point:] “if Mr. Schultz believes that a multibillion-dollar corporation like Starbucks can
Starbucks has said that AJ Jones II, their executive vice president and chief public affairs officer, is accessible to discuss worker policy issues and is the most qualified to do so. Jones served in a high capacity as an adviser to Democratic Representative James Clyburn in the past.
Since the middle of 2021, Starbucks Workers United has been victorious in elections at about 260 outlets in the United States, while the organization has been unsuccessful in around 70 elections. The labor union advocates for higher compensation and benefits, enhanced health and safety standards, and safeguards against unjust firings and disciplinary actions.
Starbucks has issued a statement indicating that the company supports its workers’ rights to form and participate in legitimate union activity. Since October, the corporation has participated in more than 80 individual retail contract negotiating sessions.
