Sector Update: Consumer Stocks Flat to Higher Premarket Tuesday

Amazon.com's Project Kuiper is being considered as another option by British Airways owner IAG to equip its fleet with satellite-powered Wi-Fi, Bloomberg reported Tuesday, citing an interview with the airline group's head of innovation, Annalisa Gigante.

Gigante said IAG, which also owns Spain's Iberia and Ireland's Aer Lingus, is currently in discussions with SpaceX's internet-from-space project Starlink regarding deploying satellite-powered Wi-Fi service on its aircraft fleet.

Gigante said the potential issue with a Starlink deal is the complexity of the certification process as European carriers have to go through separate certification processes. At the same time, US airlines can more easily deploy Starlink as it is already certified by the Federal Aviation Administration. A SpaceX spokesperson, however, told Bloomberg in an email that "this is not accurate."

According to the report, Amazon's Project Kuiper is slated to launch operational satellites early next year with service by the end of 2025.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

International Consolidated Airlines Group , or IAG, is working with SpaceX's Starlink and Amazon's broadband business Project Kuiper for potential satellite internet services in its jet fleet, Bloomberg News reported Tuesday.

IAG's Head of Innovation Annalisa Gigante told the news agency in an interview that the British airline holding company has not reached a final decision and is still weighing its options, including when it can install a new service. Gigante added that plans are lined up for 2025.

Gigante also noted the complex certification process that European carriers need to undergo for the new WiFi service.

Starbucks faced a strike that could expand to more than 300 of its US stores on Tuesday, news outlets reported, citing a union representing more than 10,000 employees.

The planned five-day labor action began Friday in Los Angeles, Seattle, and Chicago but spread day by day to other cities, the New York Times reported.

The employees plan to return to work on Wednesday, the Times reported.

The union, Starbucks Workers United, said in an Instagram post that the strike came "in response to the company backtracking" on negotiations. "Starbucks has repeatedly pledged publicly that they intended to reach contracts by the end of the year - but they've yet to present workers with a serious economic proposal," the union said.

Starbucks and the union did not immediately reply to MT Newswires' requests for comment.

A five-day strike by Starbucks employees has escalated into the largest work stoppage in the company’s history, with over 5,000 workers from more than 300 US stores expected to join the action, as per a Reuters report.

The walkout, led by Starbucks Workers United, has shut down 60 stores across key cities like New York, Los Angeles, and Seattle.

The protest stems from unresolved disputes over wages, staffing, and scheduling, with negotiations at a standstill.

Workers say these issues have been brewing for years and demand that Starbucks takes immediate action.

This significant disruption is set to continue until Christmas Eve, underscoring growing tensions between the coffee giant and its unionised workforce.

Wage disputes and stalled talks trigger strike expansion

The strike comes after months of unsuccessful negotiations between Starbucks and the union.

Workers have voiced dissatisfaction with the company’s offer of a future 1.5% wage increase, rejecting it as insufficient amidst rising living costs.

Starbucks Workers United has criticised the coffee chain for failing to present “a serious economic proposal.”

Workers United has advocated for significant wage increases, requesting a 64% rise in minimum hourly wages immediately and a 77% increase over a three-year contract.

In response, Starbucks has labeled these demands as “unsustainable.”

Starbucks, which operates over 10,000 stores in the US, maintains that the impact on its operations will be minimal.

The company claims the majority of locations remain open and has reiterated its willingness to return to negotiations.

However, the union disputes this, accusing Starbucks of ending prior bargaining sessions prematurely.

The strike also highlights broader labour challenges within the service industry, where understaffing and irregular schedules have fuelled dissatisfaction.

For Starbucks, which prides itself on its progressive image, the strike signals a disconnect between corporate messaging and employee sentiment.

The walkout comes at a critical time, as holiday sales often represent a significant portion of Starbucks’ annual revenue.

Major cities feel the impact as Starbucks grapples with unrest

Key locations in cities like Boston, Seattle, and Los Angeles have felt the brunt of the strike, with closures forcing customers to turn to alternative coffee options.

While Starbucks insists the disruptions are limited, the scale of the protest suggests otherwise.

This strike, described by union representatives as a “show of strength,” indicates the possibility of prolonged unrest.

The timing, during the peak holiday season, amplifies its impact, potentially affecting Starbucks’ revenue and brand perception.

Some analysts warn that continued disputes could influence investor confidence, adding pressure on the company to address worker grievances.

Looking ahead, the outcome of this labour dispute could set a precedent for other unionised retail and service workers.

Starbucks Workers United has stated that this strike is only the beginning, signalling a more confrontational approach to securing worker demands in 2024.