Sen. Bernie Sanders calls vote on potential subpoena for Starbucks CEO Howard Schultz over allegations of union-busting

Sen. Bernie Sanders is making good on his risk of a subpoena for Starbucks CEO Howard Schultz on what Sanders has referred to as union-busting exercise on the firm’s espresso retailers.

Sanders mentioned Wednesday that the Senate’s Well being, Training, Labor and Pensions, or HELP, Committee will vote March eight on whether or not to subject a subpoena for Schultz, who beforehand declined to look in entrance of the committee.

Sanders mentioned in an announcement that Schultz has denied assembly and doc requests and refused to reply questions from him and his fellow senators.

“Sadly, Mr. Schultz has given us no selection, however to subpoena him,” Sanders mentioned in an announcement.

Starbucks mentioned it might preserve speaking to Sanders’ staffers in regards to the heating.

“This can be a disappointing improvement, however we are going to proceed our dialogue with Chairman Sanders’ workers and are optimistic that we’ll come to an applicable decision,” Starbucks spokesperson Andrew Trull mentioned in an announcement to CNBC.

The HELP committee initially scheduled a listening to for March 9 in regards to the espresso chain’s dealing with of its baristas’ union push and invited Schultz to testify.

Nevertheless, Starbucks normal counsel Zabrina Jenkins wrote in a letter considered by CNBC that since Schultz is stepping down as interim CEO in March, it makes extra sense for one more senior chief with ongoing duties to testify. The corporate as an alternative put ahead Chief Public Affairs Officer AJ Jones II as the very best individual to handle the committee.

In response, Sanders, who chairs the Senate committee, hinted that lawmakers may compel Schultz to look by issuing a subpoena.

Schultz owns 1.9% of Starbucks’ shares, in accordance with FactSet. The corporate’s market worth stands at about $124.6 billion.

Practically 290 company-owned Starbucks cafes within the U.S. have voted to unionize as of mid-February, in accordance with a tally from the Nationwide Labor Relations Board. Schultz has pushed again aggressively in opposition to the union, and staff have accused the corporate of breaking federal labor legislation, resulting in scrutiny from sympathetic lawmakers akin to Sanders.

The allegations of union-busting have broken Starbucks’ status as a progressive employer, though they do not seem to have harm the corporate’s U.S. gross sales. The chain reported U.S. same-store gross sales development of 10% for its newest quarter, boosted by robust demand over the vacation season.