Business
Starbucks Workers United holds rally in NYC as strikes continue for a third week
NEW YORK — Starbucks Workers United held a rally outside the Empire State Building on Thursday as its open-ended strike entered its third week and no signs of an impending resolution.
Adding to the crunch of holiday shoppers and tourists, several hundred picketers gathered outside of the famous landmark, which is also the site of a swanky three-floor Starbucks Reserve location and the company’s regional headquarters.
Members of other unions, like the AFL-CIO and Service Employees International Union, which is affiliated with Workers United, protested alongside baristas, chanting “No coffee, no contract” and “What’s disgusting? Union busting” between speakers.
“Their fight is a fight really for all of us, to workers across the country, to corporations like Starbucks, across the country that workers are fed up with the status quo, and they’re not going to take it anymore,” SEIU President April Verrett told CNBC.
Twelve demonstrators were arrested for blocking the building’s entrance.
Baristas launched the strike on Starbucks Red Cup Day last month, seeking new proposals from the company that address its top issues to finalize a contract. Those include improved hours, higher wages and the resolution of hundreds of unfair labor practice charges levied against Starbucks.
Out of the 145 locations involved in the strike, 55 remain closed, according to a company spokesperson.
The two parties have not been in active negotiations to reach a contract after talks between them fell apart late last year. The strikes have not changed that fact so far.
While the strike has injected uncertainty into Starbucks’ busy holiday season, the company has said its sales haven’t been affected. CEO Brian Niccol told employees that Red Cup Day was its strongest in history.
A successful holiday season will be key to the chain’s turnaround under Niccol. Starbucks broke a nearly two-year streak of same-store sales declines in its most recently reported quarter. Past strikes have impacted less than 1% of its stores, the company said.
The New York City rally comes after the company paid $38.9 million to settle violations of the city’s Fair Workweek Law. Other large restaurant employers, like Chipotle, have previously run afoul of the law, which Starbucks said is “notoriously challenging” to navigate.
The city’s Department of Consumer and Worker Protection found Starbucks committed half a million violations of the law since 2021. The Fair Workweek law requires regular scheduling week to week, mandates schedules be provided 14 days in advance and says hours cannot be reduced by more than 15% without legitimate business reasons.
DCWP Commissioner Vilda Vera Mayuga, who spoke at Thursday’s rally, said the timing of the record-breaking settlement with the ongoing strike was coincidental.
“While the NYC laws remain unchanged and complex, our focus hasn’t shifted – we’re committed to creating the best job in retail and to ensuring our practices follow all laws,” Starbucks said in a statement.
The city’s current Mayor Eric Adams and Mayor-elect Zohran Mamdani have rallied behind striking workers. Mamdani joined Sen. Bernie Sanders, I-Vt., alongside baristas in Brooklyn earlier this week.
Both Starbucks and the union have pointed blame at the other for failing to reach a bargaining agreement and maintain they are ready to speak when the other is. The two parties entered into mediation in February, and hundreds of barista delegates voted down the economic package Starbucks proposed in April.
The company has said it is investing $500 million to improve the employee experience as part of its “Back to Starbucks” strategy. That investment includes upgrading its scheduling technology and adding more baristas to rosters.
“As we’ve said, 99% of our 17,000 U.S. locations remain open and welcoming customers —including many the union publicly stated would strike but never closed or have since reopened. Regardless of the union’s plans, we do not anticipate any meaningful disruption. When the union is ready to return to the bargaining table, we’re ready to talk,” spokesperson Jaci Anderson said in a statement.
Business
US consumer price inflation hits 3.8% in April, highest in nearly 3 years as Iran war fuels energy costs – The Times of India
US inflation rose in April to 3.8 per cent as surging fuel costs amid the ongoing Iran-US conflict drove up consumer prices, hitting a three-year high complicating the Federal Reserve’s path on interest rates.Data released by the Labor Department on Tuesday showed the Consumer Price Index (CPI) increased 0.6 per cent in April after a 0.9 per cent jump in March, the biggest monthly rise since June 2022. On an annual basis, inflation accelerated to 3.8 per cent, marking the highest year-on-year increase, since May 2023.Petrol prices in the US are now more than 28 per cent higher than a year ago, according to official data. AAA estimates show average gasoline prices have crossed $4.50 per gallon, roughly 44 per cent above year-ago levels, squeezing household budgets and raising concerns about broader economic fallout.The spike in energy prices follows the escalation of hostilities between the US, Israel and Iran earlier this year. Markets were rattled after Tehran blocked access through the Strait of Hormuz — a critical global energy route that handles nearly one-fifth of the world’s oil and liquefied natural gas supplies.Core inflation, which excludes food and energy prices, remained relatively contained. Core CPI rose 0.4 per cent month-on-month and 2.8 per cent annually, suggesting that higher fuel costs have not yet fully spread across the wider economy.Food prices also edged higher in April. Grocery costs rose 0.7 per cent from March, led by increases in meat prices after a slight decline in the previous month.The latest inflation reading adds to uncertainty for the Federal Reserve, which had earlier been expected to begin cutting interest rates in 2026. Policymakers are now signalling caution amid fears that prolonged geopolitical tensions and elevated oil prices could trigger another wave of inflation.US President Donald Trump has repeatedly criticised the Fed for not lowering borrowing costs faster to support economic growth. Attention is now turning to Kevin Warsh, Trump’s nominee to succeed outgoing Federal Reserve Chair Jerome Powell, whose Senate confirmation is expected this week.Higher fuel costs are also beginning to weigh on corporate America. Appliance maker Whirlpool Corporation said last week that quarterly revenue fell nearly 10 per cent, warning that the war-driven economic slowdown had severely dented consumer confidence.
Business
EBay rejects £41.4 billion GameStop takeover offer
EBay has turned down a 56 billion US dollar (£41.4 billion) takeover move from GameStop, labelling the proposal as “neither credible or attractive”.
GameStop boss Ryan Cohen launched an unsolicited offer of 125 dollars (£92.40) per share – half in cash and half in GameStop stock – to eBay shareholders last week.
However, the online marketplace’s board confirmed on Tuesday that it had now rejected the move.
In a letter, eBay chairman Paul Pressler said it reviewed the offer but believes that eBay is a “strong, resilient business”.
He added: “We have sharpened our strategic focus, strengthened execution, enhanced our marketplace and seller experience, and consistently returned capital to shareholders.
“With its differentiated global marketplace and a clear strategy, eBay’s board is confident that the company, under its current management team, is well-positioned to continue to drive sustainable growth, execute with discipline, and deliver long-term value for our shareholders.”
GameStop, which runs around 1,600 shops around the US, said it started accumulating eBay shares earlier this year and currently has a 5% stake.
Mr Cohen had previously indicated he would take his proposal directly to eBay shareholders if the company’s board rejected the deal.
Business
India’s retail inflation jumps to over one-year high at 3.48 per cent in April – The Times of India
India’s retail inflation rose to a more than one-year high of 3.48 per cent in April from 3.40 per cent in March, driven mainly by higher food prices, according to data released by ministry of statistics & programme implementation on Monday. Food inflation, measured by the Consumer Food Price Index (CFPI), also accelerated to 4.20 per cent in April from 3.87 per cent last month, indicating broader price pressures across household essentials. Meanwhile, inflation in rural areas stood at 3.74 per cent, higher than the 3.16 per cent recorded in urban India.Among key items, silver jewellery recorded the sharpest inflation at 144.34 per cent in April, though slightly lower than 148.42 per cent in March. Gold, diamond and platinum jewellery inflation also remained elevated at 40.72 per cent. Among key food items, tomato prices surged 35.28 per cent year-on-year in April, while potato and onion prices remained in deflation at minus 23.69 per cent and minus 17.67 per cent, respectively. The personal care and miscellaneous goods category recorded the sharpest inflation at 17.66 per cent, while transport inflation remained largely flat at minus 0.01 per cent. India’s retail inflation has now risen for the second consecutive month, inching closer to the Reserve Bank of India’s 4 per cent medium-term target. The RBI last month projected CPI inflation for 2026-27 at 4.6 per cent and warned that elevated global energy prices due to the Middle East conflict, along with possible El Niño conditions affecting the monsoon, could pose upside risks to inflation.
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