The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
The union representing over 10,000 Starbucks baristas announced strikes in Los Angeles, Chicago, and Seattlestarting Friday, citing unresolved issues around wages, staffing, and schedules. The five-day strike is the latest in a series of escalating labor actions across service industries.
Key Points
- Strike Scale: Workers United, the union representing Starbucks employees at 525 stores, plans to escalate walkouts, potentially involving hundreds of stores nationwide by Christmas Eve.
- Negotiation Deadlock:
- Talks began in April under a February framework, with nine bargaining sessions and agreements on 30+ topics to date.
- The union rejected Starbucks' offer of no immediate wage hike and a 1.5% increase in future years, calling it insufficient.
- The union is demanding a 64% immediate wage increase and 77% over a three-year contract, which Starbucks deems "unsustainable."
Broader Labor Context
Rising Labor Actions:
- The US witnessed 33 work stoppages in 2023, the highest since 2000.
- Amazon workers at seven facilities staged walkouts during the holiday rush.
- Recent gains by workers in industries like automotive and aerospace have fueled momentum in the service sector.
Legal Disputes:
- Starbucks faces hundreds of complaints with the National Labor Relations Board (NLRB) for alleged unlawful labor practices.
- Last month, the NLRB ruled that Starbucks violated labor laws by threatening workers at its Seattle flagship cafe.
Starbucks' Position
- The company is committed to continuing negotiations and claims the union prematurely ended talks this week.
- Starbucks denies wrongdoing in labor practices and defends its proposed wage adjustments as economically viable.
Union’s Next Steps
- Workers United has called for community support at picket lines in the three cities, urging solidarity during the holiday season.
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