Starbucks Red Cup Day: Largest Strike in Company's History Could Disrupt Event
Investors lose hope in Fed, jobless claims rise, Starbucks employees strike on Red Cup Day. Labor market cooling, unionization efforts growing.
Hey there, it's J.D. Durkin reporting from the New York Stock Exchange. Here's what's happening on TheStreet today.
After a four-day winning streak, stocks are starting to dip as investors worry that the Federal Reserve may raise interest rates again. This concern comes after data showed a decrease in retail spending and a slowdown in inflation.
Today, investors are reacting to the news that weekly jobless claims are slightly higher than expected. Last week, 231,000 Americans filed for unemployment, the highest number in 3 months, indicating a cooling in the labor market.
In other news, thousands of Starbucks employees from over 200 stores are on strike today.
This strike comes after 14 new complaints were filed alleging that Starbucks violated labor laws, this time in New York City. Baristas claim that the company consistently breaks New York's Fair Workweek Law, which governs how workers should receive their schedules and any changes to those schedules. The current law requires Starbucks to give employees 14 days' notice of their scheduled hours and extra pay for shift changes. Since February, more than 70 complaints have been filed.
It's no coincidence that employees chose today to strike. Today is Starbucks' annual Red Cup Day, one of its busiest days of the year when the company gives away thousands of reusable red cups. The strike is being called the "Red Cup Rebellion."
Today's strike marks the fifth major action taken by employees as they continue to push for unionization. Since 2021, over 350 Starbucks locations have voted to unionize.
That's all for today's update. From the New York Stock Exchange, I'm J.D. Durkin with TheStreet.