Starbucks union rejects 2% raise

Starbucks union delegates voted to reject the company’s latest contract proposal, which organizers say falls short by only guaranteeing annual raises of at least 2%.

About 500 baristas representing Starbucks’ 550-plus unionized U.S. stores voted this week on the company’s latest contract offer, according to the union Workers United. Of those delegates, 81% rejected the proposal, 14% voted to accept it and the rest abstained.

While the two sides have reached tentative agreements on dozens of contract issues, including workplace safety, dress code and attendance policy, the union said the offer lacks guarantees on how many hours of work employees get per week while also failing to boost healthcare benefits or include an immediate pay bump.

In an emailed statement, Starbucks said the union presented delegates with “an incomplete framework” to vote on, “effectively undermining our collective progress.” The company said its baristas’ pay averages over $19 an hour, and that their compensation is worth over $30 when benefits are counted.

Consumer sentiment takes a dive

U.S. consumer sentiment fell to one of the lowest readings on record and long-term inflation expectations climbed to the highest since 1991 on fears of the economic fallout from tariffs.

The final April sentiment index fell to 52.2 from 57 a month earlier, according to the University of Michigan. While a slight improvement from the preliminary gauge of 50.8, the latest figure is the fourth-lowest in data back to the late 1970s.

Consumers anticipated inflation will rise at an annual rate of 4.4% over the next five to 10 years, the data out Friday showed. They expect prices to rise at a 6.5% pace over the next year. While down from a preliminary reading of 6.7%, year-ahead price expectations are still the highest since 1981.

The survey began March 25 and concluded Monday, a period that included President Donald Trump’s announcement of a 90-day pause on higher tariffs for dozens of U.S. trading partners. He also raised duties on Chinese goods to an eye-watering 145%.

In addition to stoking fears of higher inflation, the Trump administration’s trade policies are elevating anxiety about the economy and labor market. The university’s expectations index slumped to 47.3, the lowest since 2022, as 60% of respondents offered unsolicited comments about the hit from tariffs.

U.S. to loosen rules on Tesla, carmakers

The Trump administration is loosening rules to help U.S. automakers like Elon Musk’s Tesla develop self-driving cars so they can take on Chinese rivals.

U.S. companies developing self-driving cars will be allowed exemptions from certain federal safety rules for testing purposes, the Transportation Department said Thursday. The department also said it will streamline crash reporting requirements involving self-driving software that Musk has criticized as onerous and will move toward a single set of national rules for the technology to replace a patchwork of state regulations.

The new exemption procedures will allow U.S. automakers to apply to skip certain safety rules for self-driving vehicles if they are used only for research, demonstrations and other non-commercial purposes. The exemptions were in place previously for foreign, imported vehicles whose home country rules may be different than those in the U.S.

The decision comes a day after Musk confirmed on a conference call with Tesla investors that the electric vehicle maker will begin a rollout of self-driving Tesla taxis in Austin, Texas, in June.

Compiled from Bloomberg reports.