Howard Schultz hardly fits the vision of an uncaring, right-wing billionaire CEO looking to stick it workers. The current interim Starbucks (SBUX) chief executive has a reputation as a liberal lion who considered a run for president as a Democrat.
He's also delivered health-insurance benefits for hourly workers, while also giving them stock options, free college programs, and other benefits not typical of fast-food workers. Schultz's company has also been a pioneer in putting stores in disadvantaged neighborhoods and has been aggressive in hiring veterans.
Now that he has taken back the CEO's job, Schultz has made addressing worker concerns a priority.
"We will become the best version of Starbucks by co-creating our future directly as partners," he said in a letter to employees.
"And we will strengthen the Starbucks community by upholding each other’s dreams; upholding the standards and rituals of the company; celebrating partner individuality and voice; and upholding behaviors of mutual respect and dignity.”
He has also suggested that unions may not be a helpful part of that discussion.
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What Did Schultz Say About Unions?
Schultz sees union involvement as a distraction from management and workers having a meaningful discussion.
"We plan to move forward constructively with all Starbucks partners. However, we must not be distracted by the different vision being put forward by union organizers at some Starbucks stores," he wrote.
"And while not all the partners supporting unionization are colluding with outside union forces, the critical point is that I do not believe conflict, division and dissension -- which has been a focus of union organizing -- benefits Starbucks or our partners."
It's easy to take Schultz's comments as anti-union, but his track record on social and workplace issues also makes it easy to take them at face value. Schultz has been clear to embrace the concerns of employees.
"Put simply, the law gives our partners a right to organize, and it also protects the right to work without having a union," Schultz said.
"I have learned that only a very small fraction (less than 1%) of more than 200,000 Starbucks partners in the U.S. have voted for unionization, and in union elections that have occurred at Starbucks stores, roughly 65% of Starbucks partners in these elections have not voted at all."
What Does Howard Schultz Intend to Do?
The now three-time Starbucks CEO made clear in his letter that he intended to prioritize fixing employees' concerns. (The company calls its employees partners.)
With significant pressures leading to the fracturing of our partner and customer experiences, I’ve been transparent about our missteps and the reason for my return – to reimagine Starbucks – built on our core values and guiding principles. I have complete confidence that together we will restore the trust and belief of our partners and deliver an elevated Starbucks Experience to our partners and customers.
As I shared on Monday, a first order of business was to stop stock repurchases so we have the opportunity to invest more in our partners and stores. Since then, I have been meeting with partners at both large open forums and intimate, immersive collaboration sessions across the country to get underneath the challenges in the company that need to be addressed.
The CEO said that he wanted to listen and learn. He also acknowledged that about 80% of baristas had been with the company less than a year. He cited a store manager who said that because of that, "we have to do better to teach and share how we started and why we do what we do while better supporting each and every partner.”
Schultz has a track record as a progressive, It's worth noting that Starbucks did not embrace a $15 minimum wage until public pressure and labor shortages forced the company to do so, But that does not change the fact that the coffee chain has been a leader in many areas of employee benefits.
