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...
Starbucks baristas represented by the Workers United union began a five-day strike in Los Angeles, Chicago, and Seattle on Friday, citing unresolved disputes over wages, staffing, and schedules. The action involves over 10,000 workers and comes amidst rising labor activism in the service industry.
Key Issues and Background
- Labor Actions Surge:This strike follows a year of significant labor movements, with industries like automotive, aerospace, and rail seeing notable concessions won by workers. In 2023, there were 33 work stoppages, the highest since 2000.
- Negotiations Stalled:Talks between Starbucks and Workers United began in April, but the union claims the company has yet to propose a serious economic offer with just two weeks left before the year-end contract deadline. Starbucks insists it has reached agreements on over 30 topics in nine bargaining sessions.
- Union Demands:The union is pushing for a 64% immediate wage increase and 77% over three years, which Starbucks has labeled as unsustainable.
- Legal Complaints:Starbucks faces hundreds of complaints filed with the National Labor Relations Board (NLRB), alleging unlawful practices like firing union supporters and store closures during campaigns. Starbucks denies wrongdoing, stating its respect for workers’ right to unionize.
Company's Response
Starbucks said it remains committed to negotiations and is implementing a turnaround strategy under CEO Brian Niccol, focusing on restoring "coffee house culture," simplifying menus, and improving cafe operations.
Union Escalation
The union warned that walkouts could extend to hundreds of stores nationwide by Christmas Eve. This adds pressure on the company during the busy holiday season.
This strike underscores escalating tensions between workers and employers in the service industry as unions demand fairer wages and better working conditions.
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