Howard Schultz defended the billionaire’s status in Senate testimony

It will never be easy for the intermittent Starbucks CEO Howard Schultz will testify Wednesday before a Senate committee. Led by Sen. Bernie Sanders, members questioned Schultz about Starbucks’ treatment of workers and unions—and, in some cases, allegedly illegal dissolution of the union. But what got under the former CEO’s skin was Sanders and other committee members repeatedly referring to him as a billionaire.

“This moniker ‘billionaire,’ let’s start with that okay?” Schultz SAYS during the hearing. “I grew up in federally subsidized housing, my parents never owned a house, I came from nothing. I thought my whole life was based on achieving the American dream. Yes I have billions of dollars, I got it. No one gave it to me.”

Schultz served twice as chairman and CEO of Starbucks, for two terms from 1986 to 2000 and then from 2008 to 2017, before RETURN as interim CEO of the company in 2022. He descends from that paper last week. During Schultz’s time, in 1992, Starbucks went public and has become one of the world’s leading brands, with a market cap of $118 billion. At the same time, Schultz’s net worth reached $3.7 billion in 2023, according to Forbes.

During the hearing, Sanders and Democratic Sen. Tina Smith of Minnesota has repeatedly put Schultz down for his wealth, a topic that Sanders has made central to his political career. During questioning, Smith suggested that Starbucks workers have the right to unionize because of the power imbalance between employees and billionaire Schultz.

“You are a billionaire, and they are your employees. The power imbalance is extreme and that’s why people want to come together to form a union,” Smith said.

Schultz expressed disappointment at Smith’s portrayal of him as a billionaire, adding that the same thing was said “multiple times by the chairman” while teaching Sanders. “It’s your moniker, always, and it’s unfair,” Schultz told Sanders during the hearing.

Schultz spent much of his childhood in the Bayview housing projects in the Canarsie neighborhood of Brooklyn, according to a 2011 profile on New York Times. When Schultz explored running as an Independent presidential candidate for the 2020 election, he always is MENTION his rags-to-riches background.

Some have referred to Schultz’s childhood demeanor as misleading, with one former Bayview resident who knew Schultz personally describing the project as a “shiny, beautiful world” that was “middle class, not lower middle,” according to a 2019 interview with Washington Post.

Schultz’s dismay at Sanders’ treatment of the wealthy was shared by some Republican lawmakers on Wednesday, notably Oklahoma Sen. Markwayne Mullin, who defended Schultz during the hearing.

“I was upset with the chairman pointing out that all CEOs are corrupt because they’re millionaires,” Mullin said. “If you make a lot of money, you’re corrupt.”

He continued: “But, it bothers me because, Mr. Chairman, you are very successful yourself, right. You are happy. You have been in office for 28 years and you and your wife are already there [amassed] a fortune of more than $8 million,” adding that Sanders’ fortune was boosted by a new book published last month.

Sanders disputed Mullin’s claims, calling them “false.” He is worth nearly $2 million from real estate deals and investment funds, according to a 2019 Politics profile.

“I think you have the all-time record here. You’ve made more false statements in a shorter period of time than I’ve ever heard,” Sanders told Mullin on Wednesday. “If I’m worth $8 million, that’s good news for me. I didn’t notice that. That’s a lie.”

Sanders sought to get the hearing back on track to focus on the union-busting accusations: “What this hearing means is whether workers have a constitutional right to form a union,” he said. “The evidence is overwhelming, not from me, but from the National Labor Relations Board, so from time to time—despite what Mr. Schultz—Starbucks broke the law and prevented workers from joining unions to collectively bargain for decent wages and benefits.”

The National Labor Relations Board has accused Starbucks to refuse to negotiate with newly organized unions, a violation of labor laws. Schultz has long history of an anti-union attitude, however pushed back Wednesday against identifying him as a union-buster, while also denying that Starbucks violated any labor laws.





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