Transcripts For CSPAN3 Former 20240705

The Senate Committee on health, education, labor and pensions will come to order. Let me get to the point of this hearing. Today in our country, over 60 about where people are living paycheck to paycheck. And millions are working for starvation wages. Unbelievably, despite an explosion in technology and huge increases worker productivity, the average American Worker is making 50 a week less then he or she made 50 years ago after adjusting for inflation. Unless we change the nature of the way our economy works, it is all too likely that our Younger Generation will have a lower standard of living then their parents. What this means in reality is that workers throughout our country are struggling to pay for housing, struggling to pay for health care, and prescription drugs, struggling to put food on the table. Struggling to pay off their student debts and to deal with other basic sensitize of life basic necessities of life. And while that is the reality for the working class of this country, here is another reality. That is that the people on top have never ever had it so good. Today in america, we have more income and wealth inequality than we have ever had. With the top 1 now owning more wealth than the bottom 90 . With ceos making now making 400 times what their workers are making. And with three people at the top owning more wealth than the bottom half of american society. That is the economic reality that exists today. People on top doing extraordinarily well and millions of working families struggling. As a result of that economic reality, what we are now seeing is a major increase in trade Union Organizing. Throughout our country, in blue collar jobs and white collar jobs, workers are standing up and arent fighting back to form unions in order to improve their wages, their benefits, and theyre working conditions. These workers know, as i do, that Union Workers earn 20 more on average than nonUnion Workers. These workers also know, as i do, that Union Workers have Better Health care benefits, better paid family and medical leave policies, are much more likely to have a pension, and are less likely to be victims of health and safety violations compared to non Union Workers. At a time when 71 of the American People now approve of unions, the highest level since 1965, there has been a major revitalization of the trade Union Movement in this country. Between 2021 and 2022, the number of Union Elections taking place in america has gone up by 53 . And since 2020, workers have voted to form a union in over 70 of Union Elections. Its rather extraordinary. That is the good news for those of us who understand that strong unions are a vital part of rebuilding the declining middle class in this country. That is the good news. The bad news is that in order to combat this increase in Union Organizing, cooperations have engaged corporations had engaged in a unprecedented level of Illegal Union busting activities. That takes us to the focus of todays hearing. Over the past 18 months, starbucks has waged the most aggressive and Illegal Union busting camping in the modern history of our country. That Union Busting campaign has been led by howard schultz, the multibillionaire founder and director of starbucks, who is with us this morning only under the threat of subpoena. Let us be clear about the nature of starbucks vicious anti Union Efforts. The National Labor Relations Board has filed over 80 complaints against starbucks for violating federal labor law. There have been over 500 unfair labor practice charges lodged against the company, and judges have found that starbucks broke the law 130 times across six states since workers began organizing in the fall of 2021. These violations include the illegal firing of more than a dozen starbucks workers for the crime of exercising their right to form a union and collectively bargain for better wages, benefits and working conditions. Since the first Starbucks Union was certified, more than 450 days ago in buffalo, workers at more than 360 Stores Across 40 states have held Union Elections. 83 of these elections have resulted in a union victory. And today, nearly 300 Starbucks Coffee shops employing more than 7000 workers had a union. Despite starbucks aggressive anti Union Efforts. With nearly 300 shops voting to form a looming a union, starbucks has refused to sign a single first contract with the union. Not a single one. Think about that. Think about a Multi Billion Dollar Company with unlimited resources, with all kinds of lawyers, advisories, consultants, and yet they have not yet signed one contract with any of their nearly 300 unionized shops. Just a few weeks ago on march 1st, an administrator judge found starbucks guilty of, quote, egregious and widespread misconduct, and quote which showed, quote, a general disregard for the employees fundamental rights, and quote. In a 220 page ruling, this judge found that starbucks illegally retaliated against employees for unionizing, promised improved pay and benefits if workers rejected the union, conducted illegal surveillance of proUnion Workers, refused to hire perspective employees who supported the union, relocated Union Organizers to new stories, and overstaffed stories ahead of union votes. All clear violations of federal labor law. The judge also found that starbucks, quote, widespread coercive behavior over six months had permeated every store in the buffalo market, and boat. The judge ordered starbucks to reinstate seven workers who were wrongfully terminated, reopened a in store in buffalo that was illegally shut down and paid, quote, reasonable consequential damages, and quote, to more than two dozen starbucks workers whose rights were violated by the company. And let us be clear, starbucks egregious Union Busting campaign is not limited to buffalo. It is happening all over america. Federal courts in tennessee and michigan have issued emergency injunctions requiring starbucks to reinstate workers who were illegally fired, and to prohibit the coffee chain from firing workers for supporting unionization efforts. In scottsdale at phoenix, arizona. The nlrb has charged starbucks with committing eight violations of labor law when it disciplined, fired it forced out workers because they cooperated with federal investigations. On november 30th of last year, the nlrb found starbucks unlawfully reduced refused to recognize and bargain with the union and its reserve Grocery Store in seattle. Nlrb judges have found that starbucks illegally threatened to withhold benefits including Health Insurance from proUnion Workers in denver, seattle, and ann arbor. The pattern in all of these stories is clear. On one hand, we have workers making 13, 14, 15 an hour with minimal benefits, working 20 hours a week, 30 hours away, maybe 40 hours a week, depending on a totally unpredictable schedule dictated by their managers. And these workers are out there struggling today to achieve the dignity and justice on the job. That is what they are trying to do. And i applaud them for this. And on the other hand, we have a corporation with some hundred 13 billion dollars, largely controlled by an individual worth some four billion dollars, who are using their unlimited resources to do everything possible, legal and illegal, to deny these workers their constitutional right to form a union. The fundamental issue we are confronting today is whether we have a system of justice that applies to all, or whether billionaires and large corporations can break the law with impunity. I have read mr. Schultzs comments to the media. In which he expresses his strong anti union views. As an american, mr. Schultz is entitled to those views and any other views he holds. But even if he is a multi billionaire, and the head of a giant corporation, he is not entitled to break the law. So, today i will be asking mr. Schultz whether he will do what an administrative judge has ordered him to do, and that is to record and distribute a 14page notice which states that starbucks has violated federal labor law, to inform starbucks employees all across this country about their rights under the National Labor relations act. How starbucks has violated those rights and to ensure that starbucks will not infringe upon those rights in the future. In other words i will be asking mr. Schultz whether or not he intends to obey the law. Further, i will be asking mr. Schultz another question. That is, whether or not he is prepared to promise this committee that within 14 days of this hearing, starbucks will Exchange Proposals with the union, something that it has refused to do for more than 450 days. So that meaningful progress can be made to bargain a contract in good faith. And let me conclude by saying that what is outrageous to me is not only starbucks anti Union Activities, and their willingness to break the law. It is their calculated and intentional efforts to stall and stall and stall. They understand at the turnover rate at starbucks, and many other similar Type Companies is high. They understand that if workers do not seek success in gaining a contract, they will get discouraged and give up the fight. At a time when we want, at this difficult time in our country, for people to stand up and fight for the rights, to try to destroy the spirits of thousands and thousands of people who are fighting for justice. That, to my mind, is unforgivable. Thank, you chairman sanders. Workers have a right to organize. Now, some may disagree and whether the protections for workers who choose to organize should also apply to workers who choose not to organize. Thats my position, but examining this nuance is not the issue. The title of todays hearing is no company is above the law that needs to and Illegal Unions at starbucks. That clearly presumes that mr. Schultzs former employees are guilty before the allegations are fully investigated. The title suggests that this hearing is not a good faith effort to get at the facts. Its a Smear Campaign against an individual, and a Company Based upon allegations that everyone knows are still under litigation. I am not here to defend starbucks, i have my own questions about the alleged misconduct. And the law should be followed and upheld. I agree with the chair, no one is above the law. But lets not kid ourselves. This is not a fair and impartial hearing. Its not surprising that mr. Schultz was reluctant to testify, when the majority is used in the title of the hearing. To slander the witness, we are asking to testify. It sends a signal. The majority points to claims that starbucks misconduct filed the National Labor Relations Board to justify todays hearing. These allegations should be addressed and they should be investigated, period. But it would be malpractice for this committee to not also acknowledge that nlrb is currently facing its own credibility crisis. The nlrb confirmed there are four separate allegations of nlrb employee al interference, three of which the employer was starbucks before the court. It begs the question, are nlrb employees weaponizing the agency against american employers, to benefit politically connected labor unions . The National Labor relations act was passed to provide an unbiased framework to review disputes between employers and employees. The nlrb carries out the law, and is required to protect the rights of all parties in a labor dispute. Not put their thumb on the scale in the favor of unions. But that is not what we appear to be seeing in practice. And nlrb hearing officer recently substantiated reports of voting irregularities in a Union Election in kansas, that could potentially elevate the level of misconduct by nlrb employees. This includes nlrb providing duplicate balance. Supplying Union Organizers with confidential voter information. Providing rule recombination to lose, selected both the union without offering them to all of the employees. Regardless of the outcome, these actions are in direct violation of federal law and nlrb written guidelines. Today, we will hear from former congressman he is representing the brave whistleblower who brought this misconduct and weaponization of the agency to light. He will be able to provide more insight into how the nlrb has operated and violated its own practices in a procedure lujan. In a way which favors labor unions. Lets be clear, and one more time. Workers have a legal right to unionize. Companies cannot break the law to prevent unionization. Similarly, unions should not be allowed to intimidate workers into unionizing through coercion or by banning secret ballot elections with this the Supreme Court to stated, quote, indeed is a preferred method to gauge workers support of unionization. This is a conversation this committee can have, and will continue to have. But the bottom line is that a federal agency has no right to break the law to advance a political agenda. And this should be something that our Committee Investigates on a bipartisan basis. If the committee is going to properly investigate concerns over Labor Relations at starbucks, we should also investigate alleged misconduct in the agency that sought to influence the Union Representation process. Unless we experience, i said we should seek lemate policy issues, not hold show trials for public shaming. Today looks like more of what we saw last week. There are important bipartisan things the committee needs to accomplish. We need to Work Together on Real Solutions to issues facing american families, like the high cost of prescription drugs, getting americans back to work, driving down inflation that is choking economic growth. Instead, weve put ceos on the dock. Instead of the cage in which the prisoner was formerly kept is a desk in front of the committee, where a judgment has already been made. Thank, you and i look forward to todays testimony. Thank, you senator cassidy. We will now turn to our witness, mr. Howard schultz the longtime chief executive officer for starbucks and a member of the star box board of directors. Mr. Schultz, you may proceed with your testimony. Thank you very much, mister chairman. Good morning, chairman sanders, Ranking Member cassidy, and senators of the committee. Im pleased to be here this morning and tell the entrepreneurial story of starbucks and how we have carried the American Flag to 84 countries around the world. My vision first Starbucks Coffee company has always been steeped in humanity, respect, and shared success. Its a vision that was inspired by the struggles of my father, a world war ii veteran who slipped on a sheet of ice in 1960 and was promptly fired from his job as a delivery driver. It fractured our family, and it deeply scarred me. I decided at an early age, if i was ever in a position to run a business, it would be based on respect and shared success. With my oneyear term as starbucks interim ceo having come to a close, i appear before you today with love and gratitude for what we have built at starbucks over these last 40 years. The essential operating april approach at starbucks since 1987, when we had just 11 stores, has focused on values based decisions. Weve always believed that if we exceed expectations of our people, they intern will execute expectations of our customers. We call our employees partners. Its a very important point to share with the committee. Because since 1991, we establish shared ownership for every Single Person in starbucks, full and parttime. Unprecedented. More than 30 years ago, before the companys ipo, starbucks created to unprecedented benefits for our partners. It was the first of its kind in all of American Business. Never done before. Starbucks been stop program, stop equity program, and access to health care, almost 25 years before the Affordable Care act. For full and parttime workers who work 20 hours a week. My written testimony has details on the benefits and opportunities we have created for our people over the past 40 years. This represents decades of work striving to build a different kind of company that lifts our customers and gives our customers a chance for a better life. According to a, on one of the most respected benefits and Hr Consultants agencies in the country penny, this is their voice, not ours. There is literally no company, no company in our center that offers higher benefits than starbucks in the United States. And senators, we did this by building a direct relationship with our partners. Built on trust and shared success, based on a 40 year track record of benefits and actions to create opportunity. Today, maries designing our stores earn on average 17. 50. Respectfully, thats more than the minimum wage of every senator thats represented a state in this committee. Including, respectfully, chairman sanders where the minimum wage in vermont is 13 18. We are at 1750. With benefits and other income included such as 100 played college tuition, the first of its kind in American Business, comprehensive Health Insurance and been stop equity, the average value of 27 an hour. And what im most proud of is todays 63 of our retail managers started out as hourly baristas, underscoring the opportunity we provide for shared growth and success in our Employee Retention it is twice the industry average. Let me repeat. Employer tension at starbucks is twice the industry average. And throughout our history, weve addressed the issues most critical and most important to our people. Including pay equity, paid sick leave, fully paid parental leave, support of our partner networks, financial literacy, sustainability, hiring a military veterans and their spouses. Over 30,000 to date. Partnering on Food Security and offering industry leading Mental Health support. The vision and track record and ongoing pathway for employees has led our industry. A small number of our partners, about 1 , have chosen a different approach. As is their right under law. And while we care deeply but each and every one of our partners, we are limited by law to what we can unilaterally do in union environments. We are 100 committed to fulfilling our obligations as an employer under the National Labor relations act, and are committed to good faith negotiations on first contracts for each unionized store. A year ago, i came back to starbucks as interim ceo and concluded we are back on the right path and have demonstrated that by 1. 4 billion dollars of employees facing investments that we made this year. Every day, we wake up thinking about how we can put our people first, put them in a position to win, and do everything we can to demonstrate the conscience and heart and values of Starbucks Coffee company. That has been the starbucks way for the past 40 years. Since 1987, when we had 11 stores 100 ploy east. Without, i welcome questions. Mr. Schultz, thank you very much. My time is limited, as is the time of all of our members here. So i am going to be asking you to respond to each question as briefly as you can. Hopefully with a yes or no. Do you understand that in america, workers have a fundamental right to join a union and collectively bargain to improve wages, benefits, and working conditions . Do you understand that . I understand. And we respect the right of every partner who wears a green apron, whether they choose to join the union or not. Are you aware that judges have ruled that starbucks violated federal labor law over 100 times during the past 18 months . Far more than any other corporation in america. Sir, Starbucks Company unequivocally, and let me set the tone for this early on. Has not broken the law. Okay. Are you aware that on march 1st 2023, and administrative judge found starbucks guilty of, quote, egregious and widespread misconduct in court. Widespread coercive behavior, and showed a general disregard for the employees fundamental rights in a Union Organizing campaign that started in buffalo, new york, in 2021. Are you aware of that . I am aware that those are allegations and congress has created a process that we are following. We are confident that those allegations will be proven false. Mr. Schultz, before answering the following question. Let me remind you that in federal law, in 18 u. S. Code section prohibits knowingly and willfully making a fraudulent statement. I understand that. Were you ever informed of or involved in a decision to fire a worker who was part of a Union Organizing drive . I was not. Were you ever informed of or involved in a decision to discipline a worker in any way who was part of a Union Organizing drive . I was not. Have you ever threatened, coerced, or intimidated a worker for supporting a union . Ive had conversations that couldve been interpreted in a different way than i intended. And so to the person who received the information that i spoke to them about. Were you informed of or involved in the decision to withhold benefits from starbucks workers in unionized stores, including higher paying and faster sick time accrual . My understanding, when we created the benefits and may, one month after i returned a ceo. My understanding was under the law, we did not have the unilateral right to provide those benefits to employees who were interested in joining a union. Am i hearing you say that you were involved in the decision to withhold benefits from starbucks workers in unionized stores . Is that what youre saying . It was my understanding that we could not provide those benefits under the law. Mr. Cells, have you ever asked a starbucks worker, if you hate starbucks so much, why dont you go work somewhere else . Im glad you asked that question. Because ive read in the press that quote. And that is not exactly what i said. Can i tell the story . Do you mind . I have some other questions, im sorry. I think its important to hear the facts. Youll have your chance. Will you commit to testifying in any trial where you personally were accused of breaking federal labor law . Something that you have been accused of doing nearly 100 times since 2021 . Mister chairman, let me say under oath, these are allegations and starbucks has not broken the law. Mr. Schultz, were you informed of or involved in the decision to close all buffalo area stores in november 2021, just days before area Union Elections . In order for starbucks employees to listen to you give a speech on why they should vote against forming a union, meaning the nlrb has determined it was a violation of the law. I think this is another area i get a chance to speak about. For the last 12 months, my involvement and engagement in my return to starbucks has been primarily, i would say 95 focused on the operations of our business. The customer, domestically and around the world. My involvement and engagement in Union Activities, despite this event today, has been minimal. I was not involved in the issue of closing any stores. Are you aware, mr. Schultz, that an administrative judge ordered you to report and distribute a video of yourself reading a notice to employees about their rights under the National Labor relations act . How starbucks violated those rights, and to assure that starbucks will not infringe upon those routes to the future. And that this notice mostly hosted all Starbucks Stores, and share digitally to all starbucks employees. Are you prepared to read that notice . No, i am not. Because Starbucks Coffee company did not break the law. Under your leadership, starbucks has repeatedly refused to bargain with any of the 7000 workers in nearly 300 stores, where workers have voted to represent themselves through the union. The first group of workers to win their election have been waiting more than 460 days to reach a first contract. Mr. Schultz, will you commit, right now, that within 14 days of this hearing, starbucks will Exchange Proposals with the union. Something that has refused to do for more than 450 days, so that a meaningful progress can be made to bargain a first contract in good faith . Will you make that promise . Because the arrangement that was made in buffalo to negotiate one single store at a time, we have met over 85 times. We have tried to arrange over 350 separate meetings. We have said publicly, and i say it again. We believe that face to face negotiations are the way to proceed. And the reason i want to make that point is because there have been safety issues in which starbucks managers have been outed on social media. There are privacy issues, we dont want to do it on zoom. We are prepared to meet face to face for a single store issue. Will you make a promise to this committee that he will Exchange Proposals with the union . So that we can begin to make meaningful progress. On a single basis, we will continue to negotiate in good faith. Thats what we will do. Senator cassidy. I defer to senator paul. Ian runs howard warwick points out the ingratitude man has for the creator. Thousands of years ago, the first man discovered how to make fire. He was probably burned at the stake, he caught the others to light. But he left them a gift that had not been conceived, and he lifted darkness for the face of the earth. Now, starbucks didnt exactly discover fire. But starbucks did somehow, somewhere discover the deaths of man sole, that he would pay as much for a double mocha latte as he once did for a weeks worth of coffee. My wife kelly and i try to get my grandparents a fancy coffee once, and my grandfather, a survivor of depression informed us, in no uncertain terms, that he drank maxwell house. Three 99 for a weeks worth of coffee. The polls, although german, often missed the zeitgeist of the times. So while we continue to purchase maxwell house, others, are contemporary, spot starbucks stock and much better than we did. Who knew people would pay six bucks for a cup of coffee . But i digress. Convincing the public to buy very expensive coffee is not the discovery of fire, but still it deserves respect. Instead, congress convenes today, not to praise congress, but to bury them. The hearing today is convened to attack a private company for its success. When its success has been a vision of customers and employees alike. Weve heard of the average wages, over 17. Weve heard of the 401k plans, weve heard of the parental leave, even for parttime employees. Starbucks has given away tens of millions of dollars each year. They have 100 percent tuition in fees for a bachelors degree. Maybe it doesnt sound like to better place to work. Starbucks is among the most Charitable Companies in the company. Since 2016, theyve had a program to give away unused food to feed over 5 million hungry families. Starbucks didnt do all this under orders from government bureau. They did it because capitalism works. We have more charity when we have more money. When we have more success, when we have more profit. Nobody buys six dollar coffee impoverished nations. We are an extraordinarily rich nation. Marion to be wrote a book called super abundance. They say, we live in an era of super abundance. Starbucks can only exist in an era of super abundance. The average its gone up to 3700. Many would argue we have too much food. You can buy seven times as much food for the same amount of work or hours. If you measure stuff in time prices, how many hours the average worker takes to buy something. Its extraordinary, how wealthy we are. Even and inflation adjusted terms, from 1962 today, 1952 today, the average income, inflation adjusted, is up fourfold. These are all extraordinary tales. This is also an extraordinary tale of accompanied started out of nothing and employs tens of thousands of people, all making great wages. And were here to say, as if this is charles dickens. We think its 1812. It is an amazing Success Story we live in. The era of super abundance. In 1820, 19 lived on less than 2 a day. Adjusted for inflation, do you know how much of the world lives that way . Less than 10 . Trade, capitalism, profit. People all the time or talking about, well, sustainable this and sustainable that. You know whats sustainable . Capitalism and profit, and employment. You want to put all those starbucks workers in the government dole. You want to have a government Coffee Company . What are we talking about here . If you dont or coffee, be like my family and by maxwell house. But for goodness sakes, dont derided the Great American success stories. This is not who we are. We are better than this. If the goal is to destroy the goose that laid the golden egg, then by all means, this hearing is a good beginning. For me, i see the fabulous success of starbucks and i understand that luxury, the luxury to spend an extraordinary amount of money for a cup of coffee is a testament to capitalism. Its a testament to the fact that we have enough money that we can do that. When i walk in starbucks, i dont see billionaires buying coffee. I see everyone, from top to bottom paying for their coffee, because theyve decided the quality is worth it. But i dont want to be part of any witch hunt that vilifies any American Business. So count me out. Count me as one who is ecstatic that starbucks is an american Success Story, and i will have no part in trashing their success. You ask the first questions. Great. Thank you very much, mister chair and Ranking Member. Mr. Charles, i appreciate you coming for us and i realize that you have spent your life creating one of the most successful brands in american history. You mentioned the long held aspiration to make starbucks a company that balances profitability with social conscience. And i think that brand is exceedingly attractive, especially young people. Its part of your success. I think, in many ways, the ability of starbucks to attract Young Workers and have them believe in the brand and the vision is a big part of that success. Which i think is part of what this group believes. That the partnership between companies and the workers is a key to success for any successful company. Many folks who work at starbucks came because they wanted a chance to work for a company to prioritizes earnings and benefits. Wellness, and your testimony described in some detail that you are the top of that ladder. We also heard, over the last few weeks, from other workers from colorado who told us they came to her for the partner centric model. But they were disappointed because they wanted the opportunity to be part of a union. They told us that disillusionment has been a very hard for them. So i guess the question i would ask, first, is that appearance that so many of the employees have, that there organizing efforts are being interfered with, seems at odds with the commitment model and the worker welfare. So how do you respond to those workers . Who appreciate the starbucks modeling, but would like to be able to organize with less confrontation. Thank you for the question. And the opportunity to answer that without some of the propaganda thats been floating around. I built my life, trying to create a company that values every Single Person with dignity and respect. That has not changed. As a result of 1 , 3400 people under 250, 000, who want to join a union. We have said it publicly, we respect the law. We respect their right and want to treat everyone with respect and dignity. However, the company has the right to has a preference. And our preference is to maintain the direct relationship we have had with our employees whom we call partners. And we have a track record that demonstrates the values that we have shown, and the value that we create. We maintain a level of respect for everyone who thank you. There has been considerable questions about the shrinking middle class. I am not asking you to be an economist in this sense, although you clearly know more about economics than i will ever know. But when you look at the charts, weve got a chart behind me. It demonstrates that as the middle class has shrunken and income inequality has increased dramatically, it has directly coincided with a decline in unions. And i certainly respect the desire to be directly connected with all your employees. But in many ways, that right to organize and the right for people to be part of a union is a crucial Building Block for the middle class. And i think it gave this country stability that we dont see in the same way that we used to. And its core, i think Union Organizing is about having a greater say in the workplace. And i think everyone always wants that, some of the studies show that entrepreneur starting a business is not necessarily to make money, but to not have swung bossing them around. What do you say to workers who want to join with appears to unionize in the workplace . Despite however great starbucks has been. Ive said before, and i want to repeat it. I think unions have served an Important Role in American Business for many years. And if you look at the 50s and the 60s, unions generally were working on behalf of a company where those people have not been treated fairly. I can only say, in my own company, we do not believe and it is our preference that we are that kind of company. We treat our people fairly. We do nothing that is nefarious. We put our people first, we make decisions based on our people. And we have the track record to prove it. Starbucks is probably one of the best of not the best first jobs in america. As i said in my opening statement, 65 of baristas are no managers. I walked into a store an hour ago, just a 24th and elm. Just walked in. I was met by a guy named niko, never met him before. 22 years with starbucks, and he tells me his story. He came from senegal, hes an american citizen. Started as a barista, became a manager, district manager. And the thing that he wanted me to know, this is an hour ago. Is i bought a house, and i have a car, and im raising two kids because of being stop at starbucks. If you put that overall, in the last 15, 20 years, over 2 million of equity, because of being stuck. 14 of senator, your time has expired. This is an important point. Two billion dollars of equity because other than being an owner. Its unprecedented. And thats why starbucks doesnt need a union. Senator cassidy. Mister chairman. I will respectfully notice that you took seven minutes on yours, and mr. Scholes shouldve been allowed to finish his statement. He will have as much time as he needs to respond to the questions of 15 people. Senator cassidy . Thank, you mister chairman. And Ranking Member cassidy. I recognized at the outset, there is some irony that a non coffee drinking a mormon conservative is defending a democratic candidate for president. And perhaps one of the most liberal companies in america. That being said, i also think its somewhat rich that you are being grilled by people who have never had the opportunity to create a single job. And yet they believe that they know better how to do so, and whats best for the American Worker, and whats best for the american economy, whats best for growth. I also think its rich to not recognize the extraordinary conflict of interest we have. Which is our democratic colleagues overwhelmingly get their Campaign Funds from unions. And therefore would like to find every possible way to extend unions, even if an enterprise feels its in their best interest to pursue a different course. Now, i know there are a number of reasons why you might wish not to have Union Organization in your various enterprises. At the same time, i agree with senator cassidy and your own comments. People have a legal right to form a union. There are some employers that are not good employers, and its necessary to respect the rights of those individuals. If any enterprise, including yours, as broken the law, and it should be held accountable for having done so. At the same time, there are legitimate reasons why enterprise might choose not to become unionized. I first would note that within your company, there are probably some stories that are union, and some other nonunion. Do the nonUnion Employees get paid less than the union store employees . The starting wage has been the same. The only difference is the benefits that we created in may, my understanding under the law is that we were not allowed to provide those benefits to people who were organizing to join a union. And so, in fact, the nonunion stores are actually a little better total package than the union stores. Let me ask another question, and make another point. I would understand why you would not want to have an adversarial relationship between the store manager and the employees that work there. I also understand that sometimes, in some union enterprises, there are work rules that prevent someone from going from a barista to becoming a manager. And youve indicated that if you have Career Opportunities for people, they are enhanced when they are able to remove from position a position to become a manager. Is the concern of yours . Torrential one story . Plays. It happens to be in the state of vermont. And i think this is indicative of the situation that we are currently experiencing. There are seven stores in the state of vermont that starbucks has. Of the seven, one of them voted to join a union. This is an important fact. 21 starbucks people, partners work in that store. How many people do you think voting to either become a union or join a union . Take a guess. When you hear the number you understand the problem. 21 people in the store, six people voted. Six. For voted to become a union, and who voted for not. I am not saying all the other people didnt vote, thats up to the committee to decide. But you cant imagine there are issues going on in a store like that, where people are close together and influencing people to do one thing versus the other. But heres the problem. Since that store since six people voted to join the union, of the seven stories in vermont, this particular store has twice the level of attrition. And the majority of the people have left the store. And the tension that exists in any store that starbucks has, with its individual stores voting in a small group of people, there is lots of issues that we are dealing with. And overall, in the stores that have voted, about 300, there is twice the level of attrition that we currently have in the 99 of stores that have not voted for the union. The vermont thing is not a proxy. The vermont thing is exactly what is going on around the country. I appreciate that perspective. I will turn to one other point, which is that we talk about corporate greed as if its something brandnew. Of course, profit incentive and greed has been there since the beginning of humankind. But there is also union greed. Great exists throughout our society, there various enterprises. But let me ask, your company is highly profitable. It was profitable, i presume, very early on. It became profitable as time went on. Where does all that profit go . Does it go to all pay you in the Senior Executives . Where does the profit go of an enterprise . Did it all go dividends, or stock buybacks . Where has your profit gone over the history of our company . The majority of profits that starbucks has made has gone back into infrastructure, roasting plans, 800,000 2 million to build a store. The profits to the company has gone back to the business. Now, whats most important though is when we take create shareholder value, as we have four starbucks throughout the years, our employees and partners are sharing our shared Success Model in that profit. Everyone has been an owner. And the first day that i came back, april 4th 2022. That is, i stop our Buyback Program in the first day. Our stock went down, i was not concerned about that. And i took that money and i invested it right back into our people, which resulted in higher wages one month after i came back. Now, that is the only evidence i have, which is a fact that my operating style which has been 40 years is to build a company that balances profitability with a level of shared success for our people. And we have the evidence to prove it sir. Senator murray. Thank, you mr. Scholz, for coming before the committee. I appreciate it. You have i listened carefully, and through your testimony, youve made a very clear that starbucks prefers its workers not to be unionized. But i think you know that decision is up to a workers under federal law. I just have been disappointed, i have to tell you, from a number of my constituents ive been hearing from about some of the widespread anti Union Efforts at starbucks. Including in washington state, where the nlrb has certified in 19 elections, as you know. They have issued 71 complaints with unfair labor law practices. And nlrb georges have issued two decisions now finding starbucks violated federal law. So let me just ask you a simple question. Do you agree that it is workers who get to decide whether they want to unionize . Senator murray, i agree that the person at starbucks has the right under the law to decide whether or not they want to join a union. And Starbucks Coffee company also has the legal right to provide a vision for our employees, which currently represents 99 of the 250,000 to where the green apron. That our vision is a preference to maintain a direct relationship. And in terms of what you said, as i said to chairman sanders, those are allegations. Starbucks Coffee Company unequivocally has not broken the law. Let me just share with you. I heard you answer, senator. With treating your employees with dignity and respect. Which i appreciate. But i am hearing from a number of folks really troubling reports. About starbucks refusing to allow credit card tipping, cutting employee hours, holding the loss of critical benefits like health care, insurance, and gender affirming care over employees who are trying to exercise their rights. And ive even heard reports, just so you know, about uncertainty for Union Employees about whether or not they would receive abortion travel benefits. Which all your workers receive. I am concerned when i hear from my constituents about unfair threats of any kind, or denying benefits unfairly, kim and i would assume you would agree that that doesnt constitute treating someone with dignity or respect. Senator murray, you and i have known each other for quite awhile. You being a senator of our home state. I think you have many times talked about starbucks as a model employer and many of the meetings that youve had, speeches you have given. I do take offense, i have to admit. Because its quite personal. When you bring up things that you have heard that are not true. We have never ever taken any benefit, and we never would, of anyone who is interested in joining a union. We simply have said that under the law, our understanding was we did not have the right to provide incremental benefits during a bargaining process. Howard schultz, the Leadership Team at starbucks, the board of directors, some of them are here today. They would never take benefits away of any time of someone involved in trying to join a union. Thank you for the answer. Im giving the questions we have the right to respond, thats why im asking. But you should know that those are some of the things that i hear. And i want to hear your response. And i have also heard allegations that starbucks has interfered with an employees ability to testify, including in seattle, where it Administrative Law judge found the starbucks did that. Can you respond to that charge . I have no knowledge of, that senator. Okay, thank you. Thank you. Senator cassidy . I jefferson or tuberville. Thank, you chairman. Thank you, mr. Cassidy. Mr. Schultz, thank you for being here. Thank you. I know this is pretty tough at times, but its good to hear your side of the story. I came from the coaching profession. Four years, i taught young kids every year at the beginning of the year about, they all wanted and needed something. I always told him one thing. The only thing you will get from me and from this country is an opportunity. And you took that opportunity and ran with it. And youve got a lot of people that work for you over the years and work for your company, and their company. And made something out of themselves. So thank you for that. Youve been a huge idol for this country, in terms of what you have done. We have heard a lot about what you give to your employees. Health care, and all that. I fully support unions. People want to join a union, thats fine. I think that is what this country is all about. It sounds like starbucks employees as a whole, from what weve heard so far, have a great working environment. I understand collective bargaining processes are ongoing, with almost 300 individual stores. And you have to negotiate each one of these individuals in each store. Each individual, not each store. And i know that there have been difficulties and trying to negotiate these individual negotiations. Im sure there are unique situations in each store. You want to be respectful, as well, due to requests of all employees. It feels like their rights are being respected and their voices heard. This could even include employees with specific rights, and protections in the workplace. Is that correct . That is correct. I know this is been a long process. It requires considerable effort on your side to do all this. So, can you speak to me about the difficulties that you have been having in learning processes specifically in the unique issues that your average person might not understand . Yeah. Thank you very much for that. When buffalo first emerged and there was a process to try and decide whether or not we were going to negotiate per individual store or buy district, or region, it was the position of the union to have it one store at a time. That created significant complications and obstacles. We now have to be put in a position to set up managers havd safety issues in which Union Organizers have been at their home, theyve been outed on social media, there have been significant challenges for people to maintain a personal safety. We have said, we do not want these meetings to be anything but face to face so we know who is in the room. We dont know if there is a zoom meeting of who is keeping the meeting, whos in the background, and who is looking in on the meeting. And whether or not they are part of the company, part of the union, or whatever. We will ask respectfully, we will show up as we have 85 separate times in a face to face meeting. And we have tried to set up over 365 meetings. It is a very difficult scheduling issue and very difficult logistics issue. And we should not be held accountable for not showing up and while were asking for is face to face bargaining. Thank you. I would like to hear your story about your employee. Youve got about a minute and a half. About the employee that you had the discussion with. This morning . That you had the argument about. Okay, thank you for that. When i came back to starbucks, i held about 100 cocreation collaborative meetings across the country, to understand from our employees what they were experiencing at the challenges over some covid flu route. Those meetings were not about union negotiations. We heard you talk about starbucks. At a meeting in long beach, a starbucks partner was trying to interrupt the meeting and started talking about the meeting. I didnt know she was filming it. There was a disruptive mentality, i turn to her, and i said, if you dont like the company, if you hate the company, you could work somewhere else. It was not a threat, and going back to chairman sanders questioned before, i could understand she may have misinterpreted what i said. It wasnt a threat. I didnt know i was being filmed, i just simply said, if you hate the company, you could go work somewhere else. There was 100 sessions that i attended are based on what weve done to improve the company. To understand the empathy and compassion need to have for our people, in a post covid environment. They were not union meetings. They were meetings to discuss starbucks and the opportunity for people. Thank you for the question. Thank you for calling the hearing, mr. Scholz. I want to welcome the workers in this room who have had to do so much and expand it so much effort over so many years to have the right to organize and bargain collectively, so we stand with you and that effort. I think that is a right that every single worker in United States of america should have. The night to bargain collectively, to organize for wages and benefits. And too often in our country, our workers dont have that right. I represent a Company Workers over generations marched and mobilized and literally bled and died for the right to organize. It wasnt conferred upon them by some ceo or some boss. They had to fight for it, and that resulted in the National Labor relations act. Which is still in effect, still halawa land, despite repeated corporate attempts to undermine it. We have a lot to talk about, not just with respects to starbucks, but for workers generally. I wanted to start with a discussion about one of the firms that starbucks hired. I am told that during your tenure as ceo, you hired one of the largest and most notorious Union Busting firms in the country, that reportedly charges upwards of 600 an hour for their services. Its been reported that in 2021, starbucks shut down all stores in the buffalo area, rented at the height regency hotel. And forced workers to hear that you give anti union talking points. While starbucks refuses to say how much they have spent on anti Union Efforts, it is clear theyre willing to spend a significant amount of money on Union Busting tactics and guess what. Under current law, federal law, the Internal Revenue service law, starbucks is able to write those off as a business expense, meaning taxpayers are subsidizing Union Busting United States of america, including starbucks. I would ask you, as a private citizen in your capacity, do you believe the corporations should have the right to get a tax break, a tax break for Union Busting and activities. Senator casey, you said a number of things id like to respond to. But i will answer that question first. Starbucks Coffee Company is following the laws of congress. I didnt ask about starbucks, i ask you what your personal view. Do you think that provision should stay as the law . Or should be changed . My personal view is we should follow the law as the congress has set up. Do you support that . I support the law. You support the provision that allows a company to hire Union Busting firms and conduct other activity that affairs with the rights of workers. I support the law, you and i also support you that is not true. Look, you go to just march of this year. The Administrative Law issued a 215page decision finding, quote, egregious and widespread misconduct demonstrating a general disregard for the employees fundamental rights in buffalo, new york. So i think theres plenty of evidence on the record, in terms of what the National Labor Relations Board has set forth in their opinions and their work. Let me ask you another question before my time has expired. There have been complaints, and i want you to answer this if you know nothing about it. That starbucks is spying on its workers, as they try to organize. Again, another National Labor Relations Board Administrative Law judge wrote that starbucks uses headsets too closely supervise, monitor, and create the impression that employees Union Activities are under surveillance. Weve heard about this with regards to other companies. Do you, believe in your personal capacity, do you believe that workers should have the basic dignity at work not to be surveilled by their employers. Senator, i am incredibly proud of how we treat starbucks partners and have since 1987. I understand youre proud of it. Im not aware of anyone surveilling anyone. Youre not aware of it . Do you support that . No, i would not support that. Thank, you mister chairman. Can i come back and address something you said, if you dont mind. You talked about buffalo. I want to clarify, from what i understand the activities in buffalo began in 2021. I was not the ceo at the time. I want to share with committee what we found out by the organizing in buffalo. And i think this is important, for everyone to know. The organizing in buffalo began with an individual who we later found out was paid for and joined starbucks in 2020. Even though we hired her on her own marriage, we found out that she was paid for by the very union trying to organize starbucks. I am going to have to cut you off. Senator . That was a good story. Welcome back to that, because it sounds like something to do. Considering the chairman doesnt want to hear any of that information, because i believe hes pretty biased in his opinion already, mr. Scholes, ill give you an opportunity to finish that. Thank you very much. So as you might imagine, we are very curious to understand what happened in buffalo. And we later found out that this individual, who was hired in 2020, was paid for under the employment of the union that was trying to organize starbucks. We later found out there was more than one person, so you might want to ask yourself, where is the fairness and objectivity and integrity of what we are talking about here today . If you are anti union as a ceo, you are anti Union Busting. Im not saying youre anti union, im just saying this seems like to me, as a former ceo, not nearly at the success you are at sir. And im not trying to defend your company, because quite frankly, politically, run totally different ends of the spectrum. And so the irony of this hearing is actually kind of funny. I do want to point out some hypocrisy about this hearing with the chairman. Its not trying to be personal, all this information is going to be very public. But the fact that you cant defend your company because you want to have a Good Relationship with your employees, you believe in employee values, we all do. Any ceo knows that success is based on employees, we get that. But it seems like unions today, all they want to do is fight with their employees, and the employer. The inseam employer that is hiring those team members. And that friction causes a very volatile and tough workplace. And if the company and employees arent in the same boat, were own same direction. And they all want to be successful. The unions them selves, if youre part of a union, you can never be an executive, you can never be a manager, you can ever be a ceo. And if you Campaign Executive or manager or ceo, how are you going to end with the changes that they want in those positions to begin with . They hold back their team members. I point out that all ceos across because our men millionaires. If you make a lot of money, you are corrupt. Its upsetting for me because mr. Chairman you yourself have been very successful. Glad that you have been, and youve been an officer 28 years. Your wife has immersed a wealth of over 8 million. In fact your quote on being wealthy and being a millionaire is if you read a bestseller, you can write 1 million if you can be a millionaire, like cant mr. Schultz another ceos be honest . If that is the case, lines that mr. Scholz, and actually creates jobs. The bestseller hook isnt creating any jobs, why is it that he is corrupt and you are not. Why is it that all ceos are corrupt, because theyre wealthy, and yet our chairman, who is wealthy im glad that you are. But you are not . Guys, the governments role is to create an environment for entrepreneurs. For a go getter, for role changers, to be successful in life. The u. S. Government is designed for people who want to succeed can. We can go out and achieve anything that we choose to. When you lean towards socialism, what you think is as government is the answer, unions are the choice. If you are against us than you are dead wrong and you must be corrupt. Thats not the world we are living in. Thats not the america that we believe in. Im not against the unions. If you want it used to be in the union, be any union. But if you choose not to, then you choose not to. Im good with right to work states. Thats why unions thrive in oklahoma. We are right to work stay. It creates a happy environment, a good environment. Employees get to choose what we get to be a part of. The employer can have a saying it. What is wrong with choice . What is wrong with employees having a choice . What is wrong with a ceo defending his company . Open the saying that he is providing good benefits and paying higher than everybody else. If you are not part of a union and you are also paying starvation wages. What hypocrisy what bias chairman, you are chair of the health, education in, and labor, and pension committee. But we shouldnt have a biased approach, we should have what is best for american. All of those who want to thrive and work in it. So huawei disagree, mr. Schultz, i find you for your success. I applaud all of the ceos out there for their success. All of the employees who work hard in the same boat making their companies great. Thank you. Let me respond, because the senator did mention my name, i think. I think you have an alltime record here. Youve made more misstatements in a shorter period of time and ive ever heard. If im worth excuse. Me excuse me. Go ahead. Yes sir. Im worth 8 million, that is good news to me im not aware of it. That is a lie, all right . Public record. You are probably looking at some phony rightwing internet stuff. It aint true. All right . You should read beyond it. Its not true. Article public record. Now, it is not public record. It is not public record. Excuse me, i have the microphone now. Number two did you not make the statement . You had your time, all right . You are not telling the truth. Second of all, you have no evidence that ive ever said that all ceos of corrupt. I have never, ever, said that. You should not say it. Furthermore, what this hearing is about is whether or not you talk about being pro union. Really . What this hearing is about is whether workers have the constitutional right to form a union. The evidence is overwhelming. Not from me, but from the National Labor Relations Board, that time after time, despite what mr. Schultz is saying, starbucks have broken the law and has prevented workers from joining unions to collectively bargain for decent wages and benefits. Senator baldwin. Thank you, mister chairman. Mr. Schultz, i want to begin by acknowledging the leadership role that your company has played in providing benefits to workers you talked about it in your testimony with great pride. Comprehensive Health Benefits to full in parttime employees starting in 1998. Stop awards to all employees since 1991. You noted that these benefits allow you to interact and retain a workforce that you call the, secret sauce, of starbucks success. Given this history, though it is all the more puzzling to me that you are fighting this union drive so fiercely. You have said that a union will sever the direct relationship that you have with employees that might you call crucial to anticipating their needs. Instead of leaving it up to your anticipation a union can ensure that you receive clear feedback about what your workers actually need, free from fear of retaliation. You call them partners, your workers are limited and their ability to engage with you directly because there is a power differential. You have power over them. The benefits that they cherish. Power you have shown your willingness to wield, involving employees attempting to organize. I find it particularly ironic, especially given your own powerful story, but you do not see this power dynamic. Sure, i think this number is right for u. S. Employee base. You employ over 235,000 people over 3000 in my home state of wisconsin alone. You cant possibly have a direct relationship with all of them. Some intermediary is necessary. If you truly want a direct relationship with your workforce, i would suggest to you that a union could provide that. I also want to know that in your written testimony you returned to starbucks in april of last year and noted that the company had gone astray. Had fallen, lost its way on many levels. He talked about short termism. An issue on which i agree profoundly. Who were these partners to turn to with this direct relationship during this time that the company had gone astray . In wisconsin, when i met with Starbucks Union organizers it was immediately clear to me that they take significant pride in their work. I talked a little back and forth about the quote of hating starbucks summit why dont you quit or get a job somewhere else. These workers do not want to quit. They want to work. In fact, they seem to share so many of the same goals for the company that you have laid out so eloquently in your testimony. All of these workers is asking you respect their right to organize, which would require you to treat them not just as partners but equals. It is the power dynamic that i was talking about. On that note, mr. Schultz, it has been almost one year since the First Wisconsin story voted to unionize. I want to ask you, on the record when starbucks will begin bargaining in earnest with those workers and when can i expect that the first contract has been signed . Id love to answer your question. And i wonder if i could have some more time to answer some of the things youve said. But we are prepared in the state of wisconsin and other states that we have partners who want to join a union to meet face to face, as weve stated consistently and begin a bargaining process. We are prepared to do that in wisconsin. Mister chairman, i wonder if i could speak to a few things that the senator had mentioned. You have about 50 seconds. Okay. Starbucks has had almost 5 Million People where the green apron. 5 million. So we have created for close to 5 million jobs. 5 million jobs. Just think about that. How many families have benefited from starbucks. The majority of those partners have participated in an equity plan unprecedented in American Business. 14 of their base pay is how we start. In addition to that, 99 of the 350,000 who work for starbucks want a direct relationship with the company. In addition to that, what is the most important metric of any business. And that is trust with your people. As a result of that we have the highest level of retention of any company in our sector. Thats hundreds of companies. The highest level of retention. Mr. Schultz, senator cassidy. I defer to senator brown. Thank you, mister chair, Ranking Member. This is an interesting discussion, because i recently come from the world of building a business over 37 years. I declare, when it comes to unions, they are so important in todays world, visavis large, public companies. Multinationals, how would you have any countervailing client unless you didnt have an effective union. I think this is interesting, because the Restaurant Business currently is maybe three to 4 of them are unionized. One of the reasons, since i had a Small Business for 17 years, 15 employees, before it grew. And the best elements of a union is to treat your employees like family. Pay good wages. Have good benefits. You do that, you probably never are going to have a new union knocking at your door. We are talking about an industry here that through covid went through one of the most traumatic events any small enterprise or business has gone through. This is not a small enterprise for business. But its in a business, it has a high fatality rate due to the nature of it. I dont know currently what you are paying your average employee on the line. Thats the first question. And then what the average pay of senior, middle management, Senior Management would be. I always thought it was good, as long as your earning equity in whatever you are doing, that you probably will be reasonable there. And dont pull in with a maserati, and all of that. I would love to know where you are at on that wage stratification first. Thank, you senator. The average wage is 17. 50. Thats higher than the minimum wage of every state in america. With benefits, the majority of our people take the benefits. That is at 27 an hour. 65 of our managers across the country were baristas. And all in, manager salary is about 80,000. Very good. And do you have a stratum of management above that . As district manager, regional manager, and i think were most proud of is that the majority of people who are managing stores and districts, managing regions started out in our stores. We have hundreds and maybe thousands of beautiful stories that our partners have shared with us, about what starbucks has done for them in their families as a result of the benefits we have created. And those benefits were not created because there was a union. Those were created because of the decisions i think its important to note. But i think what you represent here is a watershed case. Because you are large. You generally big at large because youre successful along the way. Weve got to be careful. I want to pivot something the other side of the aisle has proposed. I am probably the most outspoken republican on the benefit of unions. But youve got to be careful where they go. If theyre going into the gigaconmee, into the independent contractors, which is the next chapter on some of this. That will stifle entrepreneurialism. When you look at if you are large, you shouldnt necessarily be held to account unless there are things that you are doing to impede the law in terms of unionizing. Youve already made that point, that you dont think youve been doing it. All im saying, this is important because this will have a Ripple Effect beyond your business. The one thing we cant have is to suffocate what has made this country great, and that is that you dont necessarily have to wrestle with a union if you do all the things that are good for your employees to begin with. Can you honestly say that youve done that throughout the history of your company . I know you have mobility, it sounds like you have no mobility unless you have what have you honestly done that . I wonder if i could give you one prime example that i think the community should understand. During covid, as you said, the Restaurant Industry it really pummeled. We had it very, very tough. We had thousands of Starbucks Stores close. Many of our peers started cutting benefits during covid. Starbucks did not cut one benefit during covid, and we paid every single partner during covid, with no exception. What was your average wage before covid . Because you said youre about 17 now. Did you have to raise it over the last couple years . We did raise wages and made, thats correct. And what was before . About 15 an hour, it went to 17. And one final point. Even 17 an hour, thats not a living wage in this day and age. I am proud that in our company, we pay the highest starting wage in a low unemployment county. In any large corporation, they should necessarily be bragging about 15 to 20 dollar wages. When you look at the typical structure of a large company, that should probably be a 20 plus. Like many main street businesses pay. And i think if Companies Like yours, and the Larger Companies dont do it, they are going to be constantly grappling with but on the other hand, unions shouldnt be trying to get involved in companies that are doing a good job, especially main street and smaller ones. I wish we had more time. We will leave it at that. Thank, you sir. Senator smith . Thank, you mister chair. Good afternoon. Good morning, i think it is, still. Mr. Schultz, you repeatedly call your employees partners. Do you value your employees or your partners want to join a union or have joined a union . Do you value them as much as you value those that have not yet joined a union . We have respect for every single partner who wears a green a print, regardless of their choice to go for a union. So yesterday, i had the opportunity to meet with some unionized starbucks workers from minnesota, grace lee and elizabeth. And they tell me that starbucks is cutting their weekly hours. They estimate that they are losing 4 an hour in wages, because the company wont allow them in unionized stores to access credit card tipping. When thats available to workers and non unionized shops. And they told me that they are simultaneously understaffed in their stores and unable to get enough hours to pay their bills. If these folks are your partners, why are you treating them differently than the non unionized workers . When we raise wages in may, we were wounded stood looted dual, we do not have the unilateral right to provide those benefits to partners who were involved in collective bargaining. And that is why. So you have said that, several times during this meeting. You have said you couldnt legally provide these benefits that bargaining over them. But you know, im sure, that the a union has specifically stated in this letter, july 15th, 2022, that they waved any objection to bargaining on this. It says in the letter, to this, and that the union hereby waives any objection that we might have to starbucks providing Union Representative employees with wage and benefit improvements provided to non Union Employees. I just think you are wrong. Let me try and explain. There are an array of wages and benefits that need to be negotiated in the collective bargaining process. It just would not be proper to take one piece of the puzzle out of the negotiating process, if the people have joined the union have decided they want to negotiate a contract. It is our preference, and our right to negotiate that contract fairly and objectively, but not in piecemeal. So, i think the way that the law reads is an exception to requirements to negotiate when the employees make it clear and unmistakable waiver to bargain. Let me ask you about this. The first minnesota star was certified over 320 days ago no. Meaningful bargain and has happened since then. There has been some meetings. You know how long the meetings have been in minnesota . Im not involved in any of the meetings. The minnesota folks photo made of minutes so sessions would not last longer than six minutes. That seems to me that that seems a failure to negotiate in good faith. From my understanding, in many of the meetings that we have shown up to have face to face meeting, the other side has decided to put on a zoom or teams. We have told them, up front, and we will not negotiate unless the meeting is in person and we know who is in the room. We have left those meetings as a result of the fact that we could not preserve the privacy and integrity of a face to face meeting. Miles of nation here is this feels like sort of a catch 22. You are not willing to bargain on issues like credit card tipping while we are simultaneously not coming together to bargain at all. I think that that is why the employees who are wanting to be in a union feel so frustrated. I want to touch on one other thing. I have been listening really closely to you today. I also come from the private sector. I had my own company at one time before i moved into the public sector. I have been really struck by your focus on what an Excellent Company you are. Honestly, it sounds as if you are personally offended, or insulted, that anyone would question you or your company. It seems as if you feel that only bad company should be unionized. That there is something nefarious about a company that has done something bad and, therefore, they need to be unionized. Starbucks doesnt need a union because you are good company. I think, mr. Schultz, that is not your decision to make. I believe that there is a inherent value in coming together to organize that would address this imbalance of power that, i think, the many, many, starbucks senator, youre. Partners sitting behind you, and in minnesota, feel. You are a billionaire. There are your employees. The imbalance of power is extreme. That is what people want to come together to form a union. Senator, i agree with you. I do not have the right to decide who can vote for union or not. I am the chairman the ceo of the company. I was the ceo of the company. I have the preference in the right to communicate to our people about what it is we believe is right for starbucks. I want to repeat, 99 of the 250,000 want to direct relationship with the company. The last thing he said, and it has been said many times by the chairman, i would like to make a point of that, this monarch of billionaire. Lets get at that. I grew up a federally subsidized housing. My parents never owned a home. I came from nothing. I thought, my entire life, was based on the achievement of the american dream. Yes, i have billions of dollars. I earned it. No one gave it to me. I have shared it constantly with the people starbucks. Anyone who keeps labeling this billionaire thing mr. Schultz i dont mean to cut you off. You have time limits of. Im not cutting off. It is your moniker constantly it is unfair. No it is not. You have had more time. I have been generous with the time. Mister chairman we have a room full of people, we have a panel to go after. You are not the only person testifying. I defer to senator marshall. Thank you Ranking Member. Mister chairman. Mr. Charles, were gonna change the subject a little bit. Last year your company decided to close 16 Stores Across the nation including the starbucks down the street here Union Station due to rising crime in the cities. Shortly thereafter you stated that there would be many more closures for similar concerns. Your store managers are quoted saying their employees have not felt safe amid a spike in crime. A surge of assaults, thefts, and third is in drug use. I agree. In fact, i fear for my own staff walking home in the neighborhood. I fear so much i purchased each one of them one of these noise makers this past christmas. One of the Colleague Office staff as recently wailea salted, as well. The lawlessness in this country is out of control. When you decided to close those stores because you fear for your employee safety, did you andy still believe that the white house needs to focus on restoring law and order and relaying a message to this country of respect for the brave men and women of Law Enforcement in this country . Thank you, senator. We do, in fact, have a significant issue of safety in urban cities around america. Starbucks has closed many, many, stores that were profitable as a result of the fact that our own people do not feel safe working in the stores. We have a situation of homelessness, drugs, mental illness. As a result of that, many of the societal issues that we are facing today are difficult for topics to address because we did not have the power or the responsibility to address these things as youve described. Thank you for the thank you for your answer and your honesty. It is a sad day for this nation when the crime is so bad that you feel the need to close profitable shops because you cannot keep your employees safe at their place of work. I have to know for the record that every single location that you closed, all 16 of them, or at democrat ran cities. And we have another saying, i want to change the subject here, again. We have a saying back home that pigs get fattened hogs get slaughtered. You do have 645 unfair label cases brought against you based upon the size of the crowd, there may be some smoke and fire together there. This is your chance. Tell your side of the story. Why do you have so many complaints . Do you feel that there has been a fierce negotiation process . Have you and your company been open to negotiation . I will give you a minute here to tell me your side of the story. Thank you. First of, with regard to the nlrb, senator cassidy mentioned a number of issues, Starbucks Coffee company will abide by the law and follow the process. I hope the committee does investigate many of the things that are investigating in the nlrb. The courage of the whistleblower to come forward with regard to the allegations that she wants to discuss with the committee. This process, unfortunately, has played out publicly in many different ways. Unfortunately, a Public Company in America Today is, unfortunately, guilty before this is your chance. Why are you innocent . Where innocent because we have done everything we possibly can to respect the rights under the law of my partners ability to join a union. Conversely, we have consistently laid out our preference, without breaking any law of communicating to our people on what we believe is a vision for the company. And i went to buffalo, as was cited by senator casey, i never mentioned the word union once i talked about the vision for starbucks. The reason is post covid 95 of the people wearing the green ape and had worked in the company last in the year. They did know anything about the company i want to buffalo to share the story of starbucks. What we have done as a company. Equity in the form of stock options. Comprehensive Health Insurance all the things we have done to provide opportunities for people. I dont go there to talk about the union. And went there to lay out our vision for the company. I have consistently done that, as well as the other leaders of starbucks. We have not broken the law. We have simply trying to defend ourselves. To tell our employees, all of them, what we stand for the aspirations we have for the future. The growth of the company, and the opportunity. Starbucks is, in many way, the quintessential Entrepreneurial Company in the last 30 years. We have created 5 million jobs from a cup of coffee. We have shared the profits with our people. We have shared this not because of the union but because of the compassion, empathy, and in many ways my own story. Understanding what happened with my father. Trying to build the kind of company that my father never got a chance to work for. That is the story of starbucks. Senator murphy. Thank you very much, mister chairman. Collective bargaining is a fundamentally conservative idea. I sort of lost track of that. It is rooted in free market principles, right . The idea that workers should be able to freely join together to negotiate in a free and open negotiation with their employer. It is kind of disappointing and sad to me how partisan this debate has. Come democrats standing up for unions. Republicans saying they support collective bargaining but not seeing that there is real genius in the idea. A Free Market Society where workers get to come together. Its funny the previous republican candidates, they really fought hard to work the union and speak at union conventions. This new dichotomy that we have is, in fact mister schultz, what do you mean when you say you abide by the law . When i do Research Online to take a look at cases that have been brought against starbucks for illegal firings, as you know new york, michigan, pennsylvania, kansas, washington and decision at a buffalo requiring you to reinstate workers calling your practice egregious. Calling your practices egregious and widespread misconduct. You say you follow the law but then, of course, this city sees repeated evidence of nlrb orders forcing you to reverse actions that were, on their face, a violation of the law. You say, you dont like the law. You abide by the law. You mean you disagree with all of these decisions from the nlrb . You think that they got the wrong and all of these cases . I think what you are talking about our allegations that we look forward to the case to defend ourselves. Some of these are orders from judges to reinstate employees based upon violations of conduct. Do you think that, in all of those cases in which judges have required stores to be reopen or for workers to be reinstated that they just got it wrong . In memphis in every case in memphis, as an example, we i i am not looking to litigate each specific case. I would like to clarify when you say you are abiding by the law mean that in every case in which and nlrb have ordered you to take steps to remediate actions in every single case they have gone wrong . We will follow the law and follow the judges order. But the judge is making a finding that you have engaged in conduct that is not allowed by the underlying law. I. E. , illegal behavior. In every case you believe that the judges got it wrong . I believe that the allegation will prove that starbucks was correct. I can give you a perfect example if you are willing to listen. Sure. Im willing to listen. Lets take memphis, which has been a clear isolated case. I think indicative of the process. Safety at starbucks is critically important. And we want to protect and preserve the safety of every one of our people. In 1997 we had a tragedy in georgetown. Three starbucks partners were murdered. As a result of that, we have always taken safety very serious, of after that everything we do was about partner safety. In memphis, and a starbucks person who agreed to join the union, after hours, opened up that store for activities that were not consistent with safety and procedures at starbucks. No one should open up a story that is closed. The manager took a disciplinary approach and terminated that person. That person was reinstated. That is the fact. Stay 50 is key at starbucks. We cannot be held accountable that we believe under the procedures of starbucks that are based on safety for our people, that is a clear violation of our procedures. I understand. Im trying to square your testimony, in which you insist that he rigorously follow the law with overwhelming evidence from the organizations that are charged with enforcing American Labor laws but that is not the case. It it is akin to someone who has been ticketed for speeding 100 times saying i have never violated the law because every single time, every single time the cop got it wrong. That would not be a believable contention if someone were to make that before the committee. I find it hard to believe your insistence that notwithstanding this extraordinary set of decisions reinstating workers, forcing stores to be reopened, that you are, in fact, consistently abiding by the law as your testimony is before this committee. I do not believe that starbucks has broken the law. Thank you. Senator cassidy . Then we make a couple of observations relative to what has been said on the other side of the aisle, the other side of the dais. First, we should have, as i mentioned earlier an investigation into nlrb activities. They are being made out as a totally objective player in the circumstance. Here i have a letter from nlrb confirming that the oig is investigating allegations of misconduct by nlrb in region 14. We can say, oh my gosh nlrb is supposed to be neutral. There is tangible evidence that they are not. Secondly, im sorry that senator murphy left. Republicans down here have totally supported the right of people to organize. I would also point out that it was republicans who are pointing the trade unions during the first week of his presidency that joe biden canceled the keystone xl pipeline. Canceled it when those trade unions needed the jobs to make their pensions. By the way, if i may point out, subsequently the administration has gone hat in hand to venezuela and the middle east asking for more production. If they had not canceled that pipeline, that oil would now be coming down to the state of louisiana employing more voters in my state are finding that oil in the most environmentally stable way. I kind of stand assign our side. Mr. Schultz, lets explore a little bit. There is this impression that the unionization effort has occurred organically. You mentioned earlier, i believe that i have some facts here, that the person in buffalo is making 69,000 a year when she went to work for the store and began to organize. I think that that is called salting. Its not as if there was a and organic coming together to unionize. No, workers of the world in i know. It was someone was paid to go in there and create an environment where, four out of six people might do it. Im not sure that this was the four out of six any comments on this person getting paid by the union . If that is not a nefarious act i do not know what it is. It does seem just a little bit in organic. You, your company made in a 2023 proxy statement that starbucks has not been found to have violated the law as part of any enforced order of the nlrb. Senator murphy suggested that you are guilty because you have been charged. You have been pointing out to not violate the law. Can you reconcile those two statements . That is correct we have not been found guilty of any violation. These are allegations. We look forward to the process that congress has set up. We will avail ourselves to prove that these are not true. And if made the point forget if i suggested this but i would like to enter the record your letter from nlrb confirming that nlrb employees and misconduct in region 14. Without objections. Do you have any comments that i feel reveal the politicalization of nlrb . From your perspective is that a real thing . I do not have any comments on that. I hope the committee will look closely at. It there has been a lot made that contracts have not yet been achieved. Sir called first contracts. I have something here from a bloomberg report that it took, on average, 465 days for first contracts in a variety of industries to be achieved. More than a half took more than a year and a half to sign. It has been argued that you are not negotiating in good faith because you have not yet achieved the contract. And yet and it she how the pattern of the first contract came out. Is there any stimuli to make on that . I think that is true. As i said earlier we showed up about 85 times to have a face to face meeting. We have tried to set up 365 additional meetings. We are very clear, we are ready and willing to have face to face negotiations. We will do so at a moments notice. Nlrb general counsel, jennifer of brazil, found that you violated labor law by refusing to bargain i didnt realize that there was a law that you had to be able to go over zoom. Any comment who some have found to be an advocate for unions in terms of this particular finding . I think and i have been in business for many, many, years. Face to face meetings, negotiations, collaborative sessions are all better to be had than is anything that is on zoom. Is there a law that says you have to do it over zoom if one party chooses to go resume . I have never heard of that law, sir. I havent heard of it either. I yield. Senator hassan . I am happy to yield to senator murphy for a minute, senator markey thank you chairman. Thank you for this important hearing. Mr. Schultz, it is good of you to show up. Then again, you had little choice. Its disappointing to me that it took such a long time and required the threat of a subpoena for you to appear before this committee. Frankly it is disrespectful to your hundreds of thousands of employees. We do appreciate you finally appearing here. All across america workers are saying that they have had enough. Rising inequality. Outlandish ceo pay for those at the top, like you, and a paycheck to paycheck subsistence for everyone else. The unionizing starbucks workers are on the front lines. As a groundswell of working in middle class people are banding together to assert their right to organize, form a union, and collectively bargained for their dignity. My father used to tell me you cant beg for your rights, you have to tell them. He lost his finger and an industrial accident as a young man. There was no osha. The boss said, see you next week, john. Get back on the job. That was before unions. That was before rights were put on the books. Ultimately, that is what starbucks workers are doing. Workers in buffalo or the spark that has lit the fire of organizing locations across the country, including 15 starbucks locations in massachusetts. The American People are watching. Public support for union today record high late last year was 71 of americans approving of labor unions. As you sit here denigrating workers, you are not just morally and legally wrong, you are in the minority. You are out of touch. Union besting is disgusting. I got the chance this week to meet with caitlin, a starbucks employee from gardner, massachusetts. Like you, caitlin cares deeply about starbucks. She originally started working for the company in 2006. She came back to rejoin starbucks in 2021. When she came back she saw storybook similar to how you describe in your testimony. A company that had lost its way. A company that now only cared about money at the expense of the health and wellbeing of its workers. To help save the starbucks she once knew and loved, caitlin and her workers formed a union. They wanted to revive a wayward company. Make your company better. You vilified caitlin and her colleagues for caring. You demonize them for participating in their fundamental right to organize. Were, see you in your company set out to punish jalen in her colleagues. Withholding benefits, raises, cutting hours and purposefully understaffing to harm their most dedicated partners. When you give us ten pages of testimony extolling the benefits that starbucks offers its employees, that is not what i see. I see caitlin. I see you squeezing the people who have made you rich with blatant disregard for the law. Because you think you can hire the lawyers and pay the Union Busting consulting firms you can get away with violating other peoples rights, disregarding their dignity and silencing working people in america. Heres the thing, if you can pay the lawyers, consultants, and the pr specialist you can also pay the workers a fair wage. You say your father was unfairly fired after he was injured on the job. Your father had no rights. Your family paid the price. That is how your workers now feel. They have no rights. They dont want to be like your father who had no rights. They dont want their families to have to pay the price for their children the way that your father had to pay the price for his children. They want rights. Your father could not protect himself. That is all youre workers are looking for. So they can protect themselves to make sure what happened to your family does not happen to their family. I dont think that you understand that, mr. Schultz they are looking to be someone who can protect themselves in the way that your father could not. Mr. Schultz, i would hope that you would understand that. I am afraid that you dont. Im afraid that if you stepped down as ceo, you would not understand that these people are afraid that your company will lose its way again that they need rights that do not just come from you but come from the company that is what they are looking for it lost its way, you see your back. It could lose its way again. Workers should not be dependent on you, mr. Schultz, and your sense of right and wrong they should be able to have the law those who stepped up everything today i think mr. Schatz you fundamentally do not understand these workers are just like your father they have no rights. Can i respond, sir . 30 seconds. Only 30 seconds . I need more time than that. You bring up my father. You dont understand, sir. My father was a world war ii veteran. He fought for this country in the south pacific. You dont understand. I understand completely. Can i finish, there . Your father served our country and then the company he worked for and i responded, chairman . Yes. Okay. I dont understand . Let me ask you a question since you cited the union as the answer. Is there a Union Contract that you personally are aware of that provides comprehensive Health Insurance, equity in the form of stock options, free college to wish and . Is there 17. 50, an average of 27 with benefits . Are you aware of a Union Contract. Sir, answer the question. A Union Contract that has those benefits . Are you aware . Mr. Schultz, here is your testimony mr. Schultz. Clear that prior to my return last april the company had lost its way. It had fallen under the dangerous influence of wall street im asking your question. Sir, you do not understand. Your testimony says your own company lost its way. It will lose its way again unless their union their senator hassan, thank you. In the post covid environment many, many, companies mr. Schultz. You dont understand thank you, mister chairman. I want to thank you for holding this hearing to hold reports of starbucks locations across the country. In new england alone there are 19 unionize Starbucks Stores. A total of 800 label practice violations have been filed by the workers union. It is absolutely critical that we hold Companies Accountable when they fail to comply with federal labor laws. Mr. Schultz, i am seriously concerned by reports that starbucks is coercing and retaliating against workers for exercising their own firing workers and were involved in the Union Organizing. Conducting Union Organizers and monitoring the work hours. Until two weeks ago you were the ceo starbucks you continue to be a major shareholder and ceo of the board. I know that senator casey asked you about reports that starbucks was surveilling workers who were engaged in organizing do you have any knowledge that such surveillance took place . I had no knowledge of that. Who decided to move these to reduce these hours or to fire them . I am unaware of that . You had no participation in decisions about moving workers who were engaged in organizing . I had no involvement in any particular issue in the union or stores. Were you or any of your successors involved in this decision . No. Mr. Schultz, the National Labor Relations Board has filed over 80 complaints against starbucks involving this activity that i just ask you about. Starbucks leadership needs and the practices. You say you dont know anything about them. As you discussed with senator barky, indicating in the past that you felt the company had lost its way. I will just and my concern about these reports of these activities and urge you, as a board member, to take action to make sure that the rights of workers who are engaged in organizing activities are protected. As you know, the National Labor relations act requires an employee to bargain collectively with a Union Representative. It has been more than 450 days since the first Starbucks Union has been established. There has been little evidence of good faith negotiations between starbucks and its union. The delay is truly unacceptable. As ceo of starbucks, what exactly did you do to move union go she asian away in a timely way . We said consistently senator that we are prepared to have collective bargaining sessions when they are face to face. We are ready, willing, and able. The record today is unacceptable. 450 days. What will you do as someone who continues to serve in the companys board of directors to rectify the situation . We want to have these meetings. Weve scheduled 85. We have been 85. We tried to schedule 365. We are ready to do that. And i understanding is on multiple that the Company Counsel them at the last minute. The fact really do speak for themselves on this issue. Starbucks is an outlier here. You need to quickly shift course and negotiate with unionized workers. Earlier this month this Committee Heard from labor leaders from employers who partnered with unions to achieve Better Outcomes for their companies and the economy. For example the president of the team stern spoke about how they have partnered with United Airlines to build a Partnership Program that would create 1000 good payment of class jobs. Knowing other Large Companies have successfully collaborated with unions, why has starbucks not done more to collaborate with its workers unions . I dont think thats true. Well, failing to reach a contract over this time period between request to organize and getting contracts done indicate that you are resisting unionization as opposed to working with the union and collaborating with them. Senator, we respect the rights of every person who wears a green apron if they want to join a union. We also have the right to communicate to the 99 , who want a direct relationship with the company. My question is, why not work with the union and collaborate . Why not get the input from the unions to actually improve things for workers . We have sent out 85 times to have meetings and we hope for them to work. I will urge you that there are a lot of examples of large employers who work well with their unions. They actually find that their business does better when they negotiate with unions, reach contracts, collaborate with those unions. I would urge you to take that approach. Thank you, mister chair. Senator lujan. Mr. Schultz, thank you for being here today. I have a series of questions. Some of them are yes or nos. I have to be able to cover a lot of ground here if its possible. Mr. Schultz, yes or no, just about to provide employees with generous benefits like health care, paid parental leave, in College Scholarships . Yes. You are proud that starbucks does that . Very proud. I understand that parttime employees need to work at least 240 hours over the work of three consecutive months, roughly 20 hours a week, to be eligible for those benefits, is that true . Im not sure that that is correct, sir. Id have to get back to you. I do not think thats correct. I dont want to ask one of your lawyers i believe that to be true. I see a lot of head nodding from employees behind you. Nonetheless, i can submit a question to the record so you can definitively say yes or no to that. Mr. Schultz, what happens if workers hours fall below a threshold, as i suggested. Are you able to answer that question . I think that their benefits would be in question, and management will try to get the schedule up so they dont lose their benefits. I understand that starbucks has a widespread pattern of reducing work or hours in stores and have unionized. After conversations with constituents from new mexico, that is what i have learned. Why do the starbucks reduce work or hours at unionized oars . Im not aware that we do, that fair. Mr. Schultz. You announced in may 2022 that the company would raise pay and double training hours at is more than 10,000 corporateowned stores. You said that these changes, and others, would not apply to unionize stores. Or stories where workers had filed for Union Elections. Did you say this . Yes. My understanding was that we were not allowed, under the law, to provide benefits unilaterally to stores and partners that were involved in unions. Who was there a finding at the nlrb along these lines, as well . I am unaware of. That related to the statement . I am unaware of that. Yes or no, do you claim that starbucks cannot make changes to benefit without good faith collective bargaining . That is my understanding. The national labours board requires a employer and a union tour good faith before they agree on a labor contract, not after. Are you familiar with that . Yes. Yes or no, just so i understand correctly, is it true that starbucks can hold shareholder meetings virtually but it refuses to allow Union Members to include even if other members are present . That is correct. The reason i ask about the reduction in hours, mr. Schatz, is i commend and appreciate but decisions were made about respecting employees. About valuing employees. But what concerns me is practices that have been shared our reductions in hours. Where an employee who maybe once worked fulltime, 36 hours or so, and ours were changed at that company for whatever reason. I would suggest because i believe it is unionization. I look forward to getting a response there. I am told the employees have to be a long call, or made available, if starbucks decides and a shift. Is that true . Sir, im unaware of a specific storm situation in mexico. Sorry. Im not asking about a story. Starbucks, across the country, in Many Properties have reduced hours of employees. That is a fight. Is that correct . For Union Workers . For anyone. We have reduced hours. We had just the schedule based on our business. When someones hours are reduced, if it is for business, to starbucks have a policy where that employee has to make themselves available established decides to call them back in for who they are not scheduled for . Your head not indicates a yes let me try to answer that. The manager and the assistant manager work very closely with the people in the store to adjust hours to accommodate peoples Work Life Balance as much as we possibly can. That is not my understanding. I would be happy to submit something into the record. My concern if this, if the store changes the hours, we decided to open our, if it will change reducing for 36 hours but 20 hours but they are told they still didnt need to be available how can they get another job . They are trying to go to school or do something to broaden whenever they are doing in their lives but a policy is put in place it says, we are going to reduce your hours and you have to stay on call. That is a starbucks policy. That is not a policy . Well, we will be happy to put you in to visit with folks from new mexico and review some of those areas that i have been talked to by others. I will look forward to that as well. To have that there can be done. All of it cameras outside and all the rest, mr. Schultz. This Company Started in a strong way with what it did with its anchor stores in seattle and washington. And there are nlrb cases where they have been opened and closed and they are being appealed. I dont want to go into that. But the testimony that we lost our way i certainly hope that we can find our way back. A lot of folks support starbucks because the employees were treated well. I just have that that is something we can work on, together. Senator thank you, mister chair. Senator, i am extremely proud of the long term chairman i did ask a question of mr. Schatz. Ill be happy to ask a question if you like a response. Thank you. Thank you very much, mister senator. What we are going to do is we have a wonderful panel that will be a here in a second. You have not voted yet, i have not voted yet. Just 30 seconds, can i be recognized to submit a letter into the record from the albuquerque score without objection. Let me conclude this session with mr. Schultz. Saying that we are looking at a situation where one side has all the money. All the power. Has all of the consultants. They can hire and fire at will. We are looking at another side where workers are making not very good wages. Wages that as i understand by the threat immunization. You now have a 15 dollar an hour minimum wage. We are looking at a situation, as senator lujan just mention, its a lovely room. Inherent butt out there in the real world whether its seattle, vermont, wherever it is, people are given of returning schedules as to when they cannot cannot get to work. Sometimes there were 20 hours a week. Sometimes theyre working 30 hours a week. It is hard to build a budget around that. At the end of the day, this hearing is not about my best selling book, it is not about venezuela, its a good book, people should read it but, the issue is pretty simple. Workers have a right to join a union. Hundreds of shops that you control workers have voted to join a union. There is zero Union Contracts. What i am not only asking you, i am urging you, do not only the right thing, do what is legal sit down you said you are prepared to sit down face to face. Is that what i hear . Yes. Do sit down, in the next two weeks, come back to us and tell us tell us the success that you have had in finally negotiating a first contract. That is my hope. With that do i get to say statement . You do. I will also say that this hearing is how this hearing should have a neutral process by which nlrb is not a thumb on the scale of one side of the other, but which they are tempting avenue to process. This committee should be investigating the allegation that we have a confirmation that analogy is investigating that there are nlrb employees that are doing precisely that. We, on the side of the aisle, firmly defend the ability of people to unionize. We have promoted policies much more favorable for unions, or say keystone xl pipeline. It have to do with the administration desire to buy oil from bresaylor than from canada. Why in the world that would be, i dont know. And flying American Workers in american trade unions. Why that would be, i dont know. Nonetheless, that is their. Call that is not mine. We should, not in this committee, presume that someone is guilty before we have done our own independent evaluation. Particularly because it would depend upon and evaluation by nlrb, which we know right now is under investigation for being biased. Nlrb its not under investigation for anything. Their employees are. Thank you very much for being with us. We will recess for ten minutes. We are going to have a very excellent panel joining us. Thank you. Antisemitism and defending democracy, as well as antiterrorism online. Please look back to the stage the ceo and National Director jonathan greenblatt