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Red cup rebels

500 Starbucks stores have now unionized across the United States

That’s still only 3% of US Starbucks locations

Tom Jones, David Crowther

On Monday, a group of baristas in Bellingham, Washington were the latest members to join the Starbucks Workers United ranks, as the store became the 500th location to unionize since 2021.

Back then, in the relatively brief interim between Howard Schultz’s second and third terms as the company’s CEO, it was a store in Buffalo, New York that made history by becoming the first Starbucks branch to organize officially. These days, a new location unionizing is a weekly, or even daily, occurrence, with data from Unionelections.org tracking the steady trickle of successful Starbucks votes.

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The red cup rebels

While Starbucks has long been known for referring to employees as “partners”, it seems like many of the issues that its coffee makers have expressed through the years have largely fallen on deaf ears. In September, for example, workers at the Washington branch and 8 other organizing stores sent a letter to Brian Niccol, the company’s new $20 billion boss, expressing concerns over staffing, scheduling, better benefits, and wages. The Buffalo, New York unionists were making many of the same complaints back in December 2021.

Despite the constant flow of labor complaints and the recent milestone, just 3% of Starbucks stores have now unionized.

Interestingly, while American industrial action has been on the rise as of late, especially during the Hot Strike Summer of 2023, just 10% of US workers reportedly belonged to a union last year, the lowest membership rate since records began in 1983.

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Netflix is down amid reports it’s leading the Warner Bros. bidding war as Paramount cries foul

Netflix’s charm offensive appears to be working.

Netflix is reportedly emerging as the leader in the bidding war for Warner Bros. Discovery after second-round bids this week, edging out entertainment juggernaut rivals Comcast and Paramount Skydance.

Investors don’t appear psyched by the streaming leader’s turn of fortune: the stock is down on Thursday morning, a day after closing down nearly 5% following reports that scooping up HBO Max wouldn’t necessarily result in a big market share boost.

Paramount, which has reportedly made five bids for Warner Bros. Discovery, doesn’t love the current state of play, either. The company sent WBD a letter questioning the “fairness and adequacy” of the process, highlighting reports that WBD’s board favors Netflix and is resisting Paramount.

Any offer would be subject to regulatory approval — a fact that may have weighed against Netflix’s offer given that cofounder Reed Hastings’ politics are vocally to the left, very much at odds with the current regulatory regime. Paramount seems confident in its ability to get approval, reportedly boosting its breakup fee to $5 billion should its potential acquisition fall apart in the regulatory process.

Investors don’t appear psyched by the streaming leader’s turn of fortune: the stock is down on Thursday morning, a day after closing down nearly 5% following reports that scooping up HBO Max wouldn’t necessarily result in a big market share boost.

Paramount, which has reportedly made five bids for Warner Bros. Discovery, doesn’t love the current state of play, either. The company sent WBD a letter questioning the “fairness and adequacy” of the process, highlighting reports that WBD’s board favors Netflix and is resisting Paramount.

Any offer would be subject to regulatory approval — a fact that may have weighed against Netflix’s offer given that cofounder Reed Hastings’ politics are vocally to the left, very much at odds with the current regulatory regime. Paramount seems confident in its ability to get approval, reportedly boosting its breakup fee to $5 billion should its potential acquisition fall apart in the regulatory process.

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Delta says the government shutdown will cost it $200 million in Q4

The 43-day government shutdown that ended last month will result in a $200 million ding for Delta Air Lines, the airline said in a filing on Wednesday.

That’s about $100,000 per shutdown-related canceled flight. (Delta previously said it canceled more than 2,000 flights due to FAA flight reductions.) When the company reports its fourth-quarter earnings, the shutdown will lop off about $0.25 per share.

Delta initially stayed calm about the shutdown, with CEO Ed Bastian stating in early October that the company was running smoothly and hadn’t seen any impacts at all. One historically long shutdown later, Delta wasn’t able to remain untouched.

The skies have since cleared, though, and Delta’s filing states that booking growth has “returned to initial expectations following a temporary softening in November.”

Delta’s shares were up over 2% as of Wednesday’s market open.

Delta initially stayed calm about the shutdown, with CEO Ed Bastian stating in early October that the company was running smoothly and hadn’t seen any impacts at all. One historically long shutdown later, Delta wasn’t able to remain untouched.

The skies have since cleared, though, and Delta’s filing states that booking growth has “returned to initial expectations following a temporary softening in November.”

Delta’s shares were up over 2% as of Wednesday’s market open.

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