The Story

Starbuckshas a latte to unpack.

Go on. 

On Wednesday, Starbucks’s longtime on-again, off-again CEO Howard Schultz, will testify before a US Senate committee about the company’s alleged union busting — after stepping down from the role for the third time. Since December 2021, employees at more than 280 of the company’s9,000 corporate-owned stores have voted to unionize. It marks one of the most high-profile labor campaigns in decades. But none have successfully negotiated a contract with Starbucks yet. Workers are fighting for better pay and benefits, guaranteed hours and more consistent schedules, improved store safety, and more. While Starbucks (and particularly, Schultz) have aggressively opposed union efforts. So much so that earlier this month, a federal labor judge ruled that the company had violated US labor laws “hundreds of times” and committed “egregious and widespread misconduct” while trying to stop the union campaigns. Last week, Schultz stepped down even earlier than expected as interim CEO.

But now he’s testifying?

Yes. After Schultz had said ‘hard pass’ to previous invitations from Congress, Sen. Bernie Sanders (I-VT) scheduled a vote for a subpoena —which surprise, surprise is when Schultz agreed to testify. Now, he’s expected to answer questions from Congress about the 500-plus charges of unfair labor practices filed by the union, as well as the National Labor Relations Board’s 80 complaints against Starbucks. Think: everything from retaliatory firingsand store closures, to boosting pay and benefits for non-union workers. But if you think Starbucks is an outlier, sit back and pour yourself another cup.

Whew, proceed. 

Labor practices (and union busting)from major companies are under a microscope these days. It comes as support for unions among Americans has jumped to a record high of 71%— which experts say was partly fueled by unprecedented working conditions during the COVID-19 pandemic and a supportive political environment.But some companies say they prefer to work directly with employees. In the meantime, little fires are erupting everywhere, including a reported rift among Amazon union organizers, strikes from LA school teachers, and an upcoming strike authorization vote at American Airlines.As for Starbucks? Wednesday’s hearing is expected to be more loaded than Pedro Pascal’s coffee order.

theSkimm

The state of unions in America is still tumultuous — and Starbucks, due to its massive corporate footprint, is front and center this week.Many are waiting to see what Schultz has to say, while organizers hope that raising standards at Starbucks could spill over to the rest of the fast-food industry.