Starbucks and interim CEO Howard Schultz are standing firm regarding testimony before a Senate committee despite Independent Vermont Sen. Bernie Sanders pushing for subpoenaing him to do so.
On Wednesday, Sanders revealed plans for the Senate Health, Education, Labor and Pensions (HELP) Committee that he chairs to soon hold a vote on potentially compelling Schultz’s testimony. The Vermont senator said in the news release announcing the March 8 vote that the interim CEO has given the HELP committee "no choice but to subpoena him," claiming Schultz "denied meeting and document requests" and "skirted congressional oversight attempts."
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"This is a disappointing development, but we will continue our dialogue with Chairman Sanders’ staff and are optimistic that we’ll come to an appropriate resolution," a Starbucks spokesperson told FOX Business on Wednesday. "Our response to the Chairman’s initial request still stands."
The committee is seeking his testimony about alleged "lack of compliance with federal labor law" at the coffeehouse company, according to the Wednesday release from Sanders.
In mid-February, Starbucks general counsel Zabrina Jenkins suggested that chief public affairs officer AJ Jones II testify on the company’s behalf rather than Schultz. Jenkins did so in a letter responding to a HELP committee letter asking for the interim CEO to appear before it during an upcoming hearing, according to a copy of her letter published online by Starbucks.
Starting in April 2023, Schultz will leave his interim role, and the company’s incoming CEO will fully take over.
"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," Jenkins wrote.
In the Wednesday press release, Sanders referenced allegations of the coffeehouse company engaging in union-busting tactics and complaints filed with the National Labor Relations Board. The company has faced growing union efforts.
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Starbucks has pushed back on such claims. The company "respect[s] their [workers’] rights to organize and engage in lawful union activities" and has "fully honored the process laid out by the NLRB," it has said.
Laxman Narasmham is expected to become Starbucks’ CEO next month. The company announced in early September that it had tapped him for the role. He comes to the coffeehouse company after heading up Reckitt Benckiser Group, the company behind brands such as Lysol, Mucinex, Air Wick and Dettol.
