The Blubber

During the Senate hearing, Schultz claimed that the company has the right to maintain a direct relationship with its employees, who it calls "partners." He touted Starbucks as a worker-focused and generous employer, with pay averaging $17.50 an hour, which is more than the minimum wage in every state, and benefits, including college tuition and company stock. These statements drew praise from Republicans on the committee, who lauded Schultz's entrepreneurship as an American success story.

However, Democrats on the committee appeared unmoved. Senator Chris Murphy of Connecticut told Schultz that his defense is akin to someone who has been ticketed for speeding a hundred times, saying "I've never violated the law, because every single time — every single time — the cop got it wrong." Schultz declined to make any promise that Starbucks would exchange proposals with the union within 14 days of the hearing, but said the company would continue to bargain in good faith.

The first group of Starbucks workers to win union elections have been waiting for more than 460 days to negotiate a first contract. Schultz refused to negotiate via sessions streamed on Zoom, which the union demanded, citing safety and privacy concerns. Both sides accuse each other of undermining the bargaining process.

Last week at the Starbucks shareholder meeting, the new CEO, Laxman Narasimhan, did not signal any change in the company's stance on unions. However, shareholders voted to approve a proposal for an independent assessment of how well Starbucks is adhering to its commitment to workers' rights, which the company had encouraged shareholders to vote against.

Schultz had agreed to testify in the Senate only after the committee prepared to subpoena him. Schultz first led the coffee chain to huge expansion between 1986 and 2000, returning to the chief executive job from 2008 to 2017 and again last April. In 2019, Schultz explored a presidential run against Donald Trump as an independent.