Former Starbucks (NASDAQ:SBUX) CEO Howard Schultz on Wednesday is likely to face tough questions from Vermont Sen. Bernie Sanders about the coffee chain’s alleged union busting.
Schultz stepped down from his post on March 20, handing the reins over to Laxman Narasimhan, who spent the prior six months learning about the company. However, Schultz remains on Starbucks’ board and is its fifth-largest shareholder, with a 1.9% stake in the company he turned into a global juggernaut.
Sanders, a pro-union independent representing Vermont, has been putting pressure on Starbucks for more than a year to recognize the union and negotiate contracts with unionized cafes.
During a Senate hearing on Wednesday, Schultz will defend Starbucks’ approach to its negotiations, maintaining that a direct relationship with workers is what is best for the company, according to a copy of his written testimony.
In early March, Schultz declined an invitation from the chamber’s Health, Education, Labor and Pensions Committee, which Sanders chairs, to testify about the company’s handling of the union push. After Sanders called for a vote on whether to subpoena Schultz, the former chief executive agreed to appear in front of the panel.
Shares in the retail coffee chain grabbed 28 cents early Wednesday to $99.00
