Why Starbucks got roasted on Capitol Hill
With additional reporting from Ari Hawkins
GRANDE INQUISITION — On Capitol Hill today, longtime Starbucks leader Howard Schultz faced a litany of accusations of union busting as Starbucks employees around the country vote to unionize. The sharpest critic of all? Sen. Bernie Sanders (I-Vt.), the progressive champion and two-time presidential candidate.
“Over the past 18 months, Starbucks has waged the most aggressive and illegal union busting campaign in the history of our country,” said Sanders, the chair of the Senate Health, Education, Labor and Pensions Committee.
Schultz denied wrongdoing, arguing that “those are allegations and Starbucks has not broken the law.”
With over 80 legal complaints from the National Labor Relations Board against the company, though, Democrats on the Hill weren’t buying it. It made for a rough day for the former Starbucks CEO.
“It is akin to someone ticketed for speeding 100 times saying ‘I’ve never violated the law because every single time the cop got it wrong,’” said Sen. Chris Murphy (D-Conn.).
As much as anything else, the hearing laid bare the state of labor relations in the United States today. Popular approval of unions is higher than it’s been in over a half-century. The left is making increasingly more noise about what they argue are unfair labor practices. But for now, management at large corporations need only withstand some tough criticism and the occasional financial penalty as the cost of doing business.
“[Congress is] naming and shaming,” Nelson Lichtenstein, the director of the Center for the Study of Work, Labor, and Democracy at UC Santa Barbara, said. “Starbucks, though, has made the decision [to] take a PR hit… but basically plow through and ignore it.”
Hearings like the one today have negligible material consequences, at least for now. There is little legal incentive for management to negotiate with union leadership. While it’s illegal to refuse to negotiate with a union in good faith, NLRB violations carry only small financial penalties. And after a union is certified by the NLRB, if they can’t agree with management on a contract within a year, employees can vote to decertify their union after 30 percent of employees sign a decertification petition. At companies like Starbucks or Amazon, workforce turnover is large enough that a sizable chunk of the workers who voted to certify a union in the first place are gone within a year.
In 2021, House Democrats along with five Republicans passed the PRO Act, which would give workers more legal protections and power to organize, but Republicans in the Senate stalled the bill, arguing that it would inhibit economic growth and innovation.
With Congress in a stand-off, Sanders — the most avowedly pro-union-without-restrictions member of the Senate — has thus pivoted. He’s wielding his committee gavel as a sledgehammer in an attempt to highlight what he sees as vast abuses of power, and inflict pain on the CEOs he holds responsible.
The “naming and shaming” strategy employed by Sanders and his allies is in part an attempt to leverage the politics of the moment: 71 percent of Americans said they approve of labor unions in 2022, representing a huge increase since 2009, when support bottomed out at 48 percent.
Yet organized labor still has a long way to go. Only 10.1 percent of Americans are members of a union, the lowest since the U.S. Bureau of Labor Statistics began tracking comparable data in 1983, when the number was 20.1 percent.
“The way that the law is going to change is you’re going to have… enough of an upsurge, that it’s preferable for employers to change the law than to deal with the constant disruption of workers demanding their rights,” said Barry Eidlin, a professor of sociology at McGill University whose research focuses on working class power in the U.S. and Canada.
For now, though, Schultz was able to take his PR hit on the chin without making any wholesale changes to how Starbucks deals with the unionization of some of its workforce.
“Management does not feel that being anti-union is an egg on its face,” said Lichtenstein, who has written 18 books on organized labor, including ‘State of the Union: A Century of American Labor.’ “No corporation advertises, ‘oh, we have a union, that means we’re a better corporation.’”
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