(SANT’AGATA BOLOGNESE, Italy) — Enthusiasts scoffed, guffawed and protested when Porsche, maker of the venerated 911 sports car, launched its Cayenne sport utility vehicle in 2002. The large SUV boosted the marque’s sagging sales, winning over Porsche loyalists.
The Italians took notice.
These days, Lamborghini factory workers in Sant’Agata Bolognese, Italy, are busy filling orders for the Urus, a high-performance SUV that has attracted new customers and electrified sales.
Demand for the Urus eclipses the company’s slinky Huracan and Aventador supercars, accounting for more than half of the company’s deliveries. Lamborghini sold 5,367 Urus units last year compared to 3,113 Huracans and 753 Aventadors — a record for the Italian brand.
Lamborghini recently added the Urus Performante model, which bolts from 0 to 62 mph in 3.3 seconds and packs 657 horses under a twin-turbo V8 engine. The 5,314-pound Performante rides like a luxury SUV on highways and masterfully maneuvers twisty back roads in Sport mode.
More than 20,000 Urus units have been sold since its launch. A hybrid version will be unveiled at the end of 2024.
“When we originally announced in 2012 our intention to create an SUV, we were absolutely convinced we would reach unprecedented volumes,” Andrea Baldi, CEO of Automobili Lamborghini America, told ABC News. “Since its debut in 2017, customer feedback has been exceptional. Within the vehicle’s first four years to market, over 80% of Urus customers have been new to the brand.”
He added, “The demand for Urus remains above supply and insensitive to the macroeconomics trends.”
The popularity of SUVs, though loathed by sports car aficionados, can actually benefit companies and drivers alike, argued Ed Kim, president and chief analyst at AutoPacific.
“Porsche is flush with capital because of the Cayenne and Macan SUVs,” he told ABC News. “We’ve seen some amazing and insane sports cars from Porsche recently. If you look historically at sports car brands introducing SUVs, the same predictable thing keeps happening: the SUV ends up being the big revenue generator. They help provide the funding to develop the sports cars these brands are known for.”
The “Ferrari faithful” may have “clutched their pearls” when the storied Italian marque finally acquiesced to consumer demand and said it was developing an SUV, Kim said. Ferrari has already begun production of the Purosangue, an exclusive and expensive new model that challenges the Urus and Cayenne Turbo. The wait-list is deep; a spokesperson told ABC News production is sold out for two years.
“The Purosangue ensures the viability of Ferrari of generations to come,” Kim said. “There was an unmet need among Ferrari customers for an SUV-type vehicle. People will want this.”
Sports car brands can no longer snub the SUV, said Autoweek editor Natalie Neff, who pointed to the upcoming Corvette SUV from Chevrolet.
“To be successful, you need to be in the SUV segment,” she told ABC News.
And a high-performance SUV does not mean the thrill of driving a sports car ends, she noted.
“The Urus is a really good example. It still has the Lamborghini feel and delivers the same type of performance you’d expect from a sports car,” she said.
Italian automaker Maserati now has two SUVs on the market: the handsome Levante, which debuted in 2016, and the all-new Grecale, a compact crossover.
“We’ve evolved a bit from a sedan-based company to a purveyor of luxury performance SUVs and supercars,” Bill Peffer, CEO of Maserati North America, told ABC News.
The athletic Grecale is available in three powertrains — a 296 horsepower turbo-four, a 325-hp turbo-four and a 523-hp twin-turbo V6 — and debuted in showrooms in January. Sales are so strong that it’s quickly become the brand’s bestseller, replacing the Levante.
“The SUV is the largest luxury segment. One in three vehicles sold [in the U.S.] is in this segment,” noted Peffer.
Alfa Romeo, the Italian marque with a historic racing pedigree, recently revealed its second SUV, the Tonale. The plug-in hybrid joins the Alfa Romeo Stelvio, a stylish SUV that entered the market in 2017. The Tonale will compete in the premium compact sport-utility segment and offers 285 horsepower from a 1.3-liter turbocharged engine.
Kim said the introduction of the Tonale will get consumers talking again about the struggling brand.
“Alfa Romeo has not had a new product since the Stelvio launch,” he said.
Peffer pointed out that Maserati is also seeing a ton of interest in its MC20, the company’s flagship supercar that makes 621-hp from a twin-turbo V6 engine.
The stunning coupe and convertible “kicked off our product renaissance,” said Peffer. “There is huge demand for the MC20 in the market. We don’t have any more to sell” in 2023, he added.
Lamborghini and Ferrari have also rolled out new supercars in the past two years: the Lamborghini Revuelto and Sterrato and Ferrari 296GTB and Roma.
With fewer sports cars on the road, however, automakers will have to keep expanding their SUV lineups to stay profitable and relevant to the next generation of motorists.
“The SUV body style still remains hugely aspirational among millennials,” Kim said. “SUVs bring in younger buyers and help cultivate loyalty and interest in the brand.”
Neff said she laments the day when these Italian brands decide to cease production of their legendary coupes and convertibles.
“It would be a sad world if there were no more sports cars,” she said.
(NEW YORK) — Twitter owner Elon Musk introduced, then quickly amended, new rules to the social media platform on Saturday that set “temporary limits” on how many posts can be read per day.
Musk initially unveiled Saturday afternoon that verified accounts are limited to reading 6,000 posts per day and unverified accounts are limited to 600 posts per day. New unverified accounts are limited to 300 posts per day, he said.
Within two hours of making the announcement, Musk tweeted that rate limits will be “increasing soon” to 8,000 for verified, 800 for unverified and 400 for new unverified accounts.
The changes were made to “address extreme levels of data scraping & system manipulation,” Musk tweeted.
Details of the changes came after many Twitter users complained about issues loading tweets Saturday morning — including receiving error messages saying “rate limit exceeded.” The hashtag “TwitterDown” was trending Saturday as users apparently encountered the new limits.
The website downdetector.com showed a spike in users reporting problems accessing Twitter Saturday morning, with thousands of problems reported by the afternoon.
Since acquiring Twitter in October for roughly $44 billion, Musk has made major changes to the company and its platform.
In an effort to significantly slash costs, the company cut roughly 75% of its 7,500-person workforce, raising concerns about Twitter’s capacity to maintain its platform.
In April, the company began phasing out legacy “blue check marks.”
Now, users who pay a monthly subscription fee and meet certain eligibility criteria can get a check mark and be considered verified.
Musk announced in May that he was stepping down as CEO, after the billionaire entrepreneur pledged in December to step down as the head of Twitter as soon as he found someone “foolish enough to take the job.”
Musk was replaced by Linda Yaccarino, previously the ad sales chief at NBCUniversal.
Musk, who runs Tesla and Space X, said at the time he plans to transition to a role as executive chairman and chief technology officer.
ABC News’ Matt Foster and Max Zahn contributed to this report.
(NEW YORK) — Whether you’re heading to the beach or a barbecue this Fourth of July holiday weekend, here’s what you need to know before hitting the highway or heading to the airport.
The roads
About 43.2 million people are expected to hit the road for the July 4 holiday — up 2.4% from 2022 and up 4% from 2019, according to AAA.
The quietest days to travel by car are anticipated to be Sunday, July 2, and Monday, July 3, according to transportation analytics company INRIX.
If you’re heading for the highway on Friday, June 30, the worst traffic is forecast to be from 10 a.m. to 5 p.m., according to INRIX.
If you’re driving home on Wednesday, July 5, the worst traffic may hit from 3 p.m. to 6 p.m.
Rental cars are averaging $47 per day, down 25% from the same time last year, according to Hopper.
The skies
More than 24 million are expected to fly out of U.S. airports from June 29 to July 5, with June 29 and June 30 expected to be the busiest travel days, according to Hopper.
But flight prices are dropping. Hopper said domestic tickets are more than $100 cheaper than they were last year.
American Airlines said it expects to fly nearly 3 million passengers from June 30 to July 4, with July 2 as its busiest day.
United Airlines said it’s planning to carry nearly 5 million passengers from June 30 to July 9, with June 30 as its busiest day.
United said its bookings are up 12% from 2022 and are now “nearly equal” to pre-pandemic levels.
The most popular U.S. destinations for the holiday are New York City, Los Angeles and Orlando, Florida, according to Expedia.
The most crowded airports are anticipated to be Hartsfield-Jackson Atlanta International Airport, Dallas/Fort Worth International Airport and Los Angeles International Airport, according to Hopper.
The Transportation Security Administration said it was prepared for a “record” number of travelers over the holiday weekend and is expecting to screen about 17.7 million people from June 29 to July 5.
The agency “is staffed and ready for the increasing travel volumes during this holiday travel period with the technologies and resources for improved security effectiveness, efficiency and passenger experience,” TSA Administrator David Pekoske said.
(NEW YORK) — Virgin Galactic is launching its first fully commercial flight of the SpaceShipTwo space plane, the company announced.
The ship will carry four people and launch around 11:00 a.m. ET, which will be available to watch via livestream. The trip is expected to last about 90 minutes.
The mission, known as Galactic 01, will see the team conduct 13 experiments examining thermo-fluid dynamics and the development of sustainable materials in microgravity conditions.
Here’s how the news is developing. All times Eastern:
Jun 29, 12:05 PM EDT
Galatic 01 crew returns to Earth
Virgin Galactic announced the pilots, crew and VSS Unity spaceplane have safely returned to Earth.
The entire trip — from takeoff to reaching the intended altitude of 50 miles above the planet’s surface to landing — took about an hour and a half.
For future trips, the company said it plans to take paying customers to the edge of outer space. About 800 tickets have already been sold for between $200,000 and $450,000.
Jun 29, 11:56 AM EDT
Breaking down the Galactic 01 flight
The group took off on VSSUnity, a suborbital rocket-powered crewed spaceplane, attached to a bigger “mothership” aircraft called VMS Eve.
VMS Eve launched similar to a commercial airplane and, when it reached more than 40,000 feet, it released VSS Unity, firing its rocket engine.
VSS Unity then reached its intended altitude of 50 miles above Earth’s surface, which is considered the edge of outer space. After spending a few minutes in zero-gravity, it began free-falling and heading back to the spaceport in New Mexico for landing.
Jun 29, 11:26 AM EDT
Virgin Galactic’s spaceplane has taken off
Virgin Galactic announced its spaceplane, VSS Unity, has taken off from the spaceport in New Mexico and is currently climbing to its altitude goal, 50 miles above Earth.
“VSS Unity is currently climbing to release altitude. Our #Galactic01 crew from the @ItalianAirForce & @CNRsocial_, are preparing to conduct 13 scientific research experiments throughout the stages of flight,” the company tweeted.
Jun 29, 10:48 AM EDT
These are some of the experiments the Galactic 01 crew will conduct
During the Galactic 01 mission, the four-person crew are conducting 13 experiments, the company said.
Some will be related to space such as measuring cosmic radiation in the mesosphere, between 30 and 50 miles above Earth, an altitude where limited data has been collected.
Others involve thermo-fluid dynamics including whether certain liquids transform into gases at high altitudes and others will develop specific foams that are very hard to produce on Earth.
The last will be related to human vitals and include examining how circadian rhythms are affected by microgravity, studying any changes in the cells that line blood vessels and comparing heart and skill MRIs before and after the flight.
Jun 29, 9:56 AM EDT
Meet the crew aboard Galactic 01
Galactic 01 will be carrying four passengers when it takes its suborbital flight, about 50 miles above Earth.
Among them are two members of the Italian Ari Force, Col. Walter Villadei, the mission commander, and Lt. Col. Angelo Landolfi, a physician.
Villadei will be wearing a smart suit to measure his biometric data and physiological responses and Landolfi will measure cognitive performance in microgravity as well as studing how certain liquids and solids mix in microgravity, the company said.
Pantaleone Carlucci, an engineer with the National Research Council of Italy, will also be on board to examine the crew members’ heart rates, brain functions and other health vitals during spaceflight.
Lastly is Colin Bennett, an astronaut instructor with Virgin Galactic, to assess the experience during the mission. Bennett was a passenger onboard the company’s 2021 flight that included Branson.
Jun 29, 9:20 AM EDT
What is Virgin Galactic?
Virgin Galactic is a spaceflight company founded by British businessman Richard Branson.
The company says its goal is to take paying customers to the edge of the space, in a similar vein to Jeff Bezos’s company Blue Origin.
In 2021, Virgin Galactic received approval from the U.S. government to take customers on spaceflights.
(WASHINGTON) — The U.S. economy grew significantly more at the outset of this year than an initial measurement indicated, according to a major upward revision released on Thursday by the Commerce Department.
Gross domestic product increased at a 2% annualized rate for a three-month period ending in March — a sizable jump from the previous estimate of 1.3%.
The fresh measurement slightly exceeds the 1.9% growth that had been originally forecast by economists surveyed by Bloomberg.
Despite the upward revision, U.S. economic growth over the first three months of this year was slower than the 2.6% growth in the previous quarter. In turn, that performance was down from 3.2% growth in the previous quarter.
The economic growth at the outset of this year was attributed to a rise in consumer spending and export sales, among other factors. An estimate of personal income over that period was revised upward by nearly 10% in the data released on Thursday.
The major upward revision marks the latest sign of resilient economic performance, despite an aggressive series of interest rate hikes by the Federal Reserve intended to slash inflation by slowing the economy and cutting demand.
Both consumer spending and hiring have remained solid. A jobs report earlier this month showed robust labor market growth in May, with 339,000 jobs added compared to Wall Street estimates of just 195,000.
However, while inflation has fallen significantly from a peak last summer, it remains at a level double the Federal Reserve’s target of 2%.
Thursday’s revised economic data arrives a day after Federal Reserve Chair Jerome Powell voiced an optimistic message about the U.S. economy and downplayed the threat of a recession.
“The U.S. economy has actually been quite resilient,” Powell said on Wednesday in Sentra, Portugal, at a conference organized by the European Central Bank.
While acknowledging that a recession is “certainly possible,” Powell said such an outcome is “not the most likely case.”
Earlier this month, the Federal Reserve paused its aggressive series of interest rate hikes, ending a string of 10 consecutive rate increases that stretched back 15 months.
Despite continued strength, U.S. labor market growth has slowed from its previous breakneck pace, suggesting that demand for workers has waned and employers in turn have faced less pressure to offer high wages, Powell said.
A slowdown of wage increases offers hope for the inflation fight, he added.
“We’re getting the softening we need,” Powell said. “We’re getting it slower than expected but it’s nonetheless happening.”
(WASHINGTON) — A unanimous Supreme Court on Thursday ruled in favor of a former U.S. Postal Service letter carrier from Pennsylvania who didn’t want to work on Sundays in order to observe the Sabbath and was disciplined for skipping shifts.
The decision by Justice Samuel Alito gives Gerald Groff, the carrier, a chance to potentially get his job back and more broadly raises the bar for when employers can legally refuse to accommodate the religious practice of their employees.
The Civil Rights Act of 1964 requires employers to accommodate the employee unless it would pose an “undue hardship.”
The Supreme Court 46 years ago interpreted that to mean anything more than a “de minimis” cost on the business — a low bar.
In Thursday’s ruling, Alito and the court clarified and tightened that standard, saying federal law requires employers to show more deference to employees unless there is a “substantial burden” on the business.
The case will have an impact on workplaces across America and the ability of employees to more easily seek religious accommodations from their employers.
(NEW YORK) — Virgin Galactic is launching its first fully commercial flight of the SpaceShipTwo space plane, the company announced.
The ship will carry four people and launch around 11:00 a.m. ET, which will be available to watch via livestream. The trip is expected to last about 90 minutes.
The mission, known as Galactic 01, will see the team conduct 13 experiments examining thermo-fluid dynamics and the development of sustainable materials in microgravity conditions.
Here’s how the news is developing. All times Eastern:
Jun 29, 9:56 AM EDT
Meet the crew aboard Galactic 01
Galactic 01 will be carrying four passengers when it takes its suborbital flight, about 50 miles above Earth.
Among them are two members of the Italian Ari Force, Col. Walter Villadei, the mission commander, and Lt. Col. Angelo Landolfi, a physician.
Villadei will be wearing a smart suit to measure his biometric data and physiological responses and Landolfi will measure cognitive performance in microgravity as well as studing how certain liquids and solids mix in microgravity, the company said.
Pantaleone Carlucci, an engineer with the National Research Council of Italy, will also be on board to examine the crew members’ heart rates, brain functions and other health vitals during spaceflight.
Lastly is Colin Bennett, an astronaut instructor with Virgin Galactic, to assess the experience during the mission. Bennett was a passenger onboard the company’s 2021 flight that included Branson.
Jun 29, 9:20 AM EDT
What is Virgin Galactic?
Virgin Galactic is a spaceflight company founded by British businessman Richard Branson.
The company says its goal is to take paying customers to the edge of the space, in a similar vein to Jeff Bezos’s company Blue Origin.
In 2021, Virgin Galactic received approval from the U.S. government to take customers on spaceflights.
(NEW YORK) — Federal Reserve Chair Jerome Powell on Wednesday voiced an optimistic message about the U.S. economy and downplayed the threat of a recession.
“The U.S. economy has actually been quite resilient,” Powell said in Sentra, Portugal, at a conference organized by the European Central Bank.
While acknowledging that a recession is “certainly possible,” he said such an outcome is “not the most likely case.”
“The economy is resilient and still growing, albeit at a modest pace,” he added.
The remarks arrived two weeks after the Federal Reserve paused its aggressive series of interest rate hikes, ending a string of 10 consecutive rate increases that stretched back 15 months.
The Federal Reserve has aimed to roll back price increases by slowing down the economy and slashing consumer demand. The approach, however, risks tipping the economy into a recession.
Inflation has fallen significantly from a peak last summer but remains at a level double the Federal Reserve’s target of 2%.
Data released in recent months suggests that the policy approach has succeeded in slowing economic activity while averting a downturn.
U.S. gross domestic product grew by a sluggish 1.1% annualized rate over the three months ending in March, according to government data.
Consumer spending and hiring, meanwhile, have remained solid.
A jobs report earlier this month showed that the labor market grew robustly in May, adding 339,000 jobs compared to Wall Street estimates of just 195,000.
“The labor market is really pulling the economy,” Powell said. “It’s a very strong labor market.”
Despite continued strength, labor market growth has slowed from its previous breakneck pace, suggesting that demand for workers has waned and in turn employers have faced less pressure to offer high wages, Powell said.
A slowdown of wage increases offers hope for the inflation fight, he added.
“We’re getting the softening we need,” Powell said. “We’re getting it slower than expected but it’s nonetheless happening.”
“In my view, the least unlikely case is that we do find a way to better balance without a severe downturn,” he added.
(NEW YORK) — Across the nation, more than $20 billion is waiting to be reclaimed by citizens who may not even know they may be owed cash from “unclaimed property,” which can include uncashed paychecks, refunds or deposits.
“It turns out so many people have unclaimed property. You may be in for a very pleasant surprise,” said Deb Goldberg, Massachusetts state treasurer and receiver general.
According to the National Association of Unclaimed Property Administrators (NAUPA), one in seven Americans has unclaimed property. Even if you’ve checked in the past and didn’t find any unclaimed property, NAUPA suggests checking for annual updates — you might be surprised by what you’ll find.
Here’s how to check to see if you have unclaimed cash:
MissingMoney.com
MissingMoney.com is endorsed by both the National Association of Unclaimed Property Administrators and the National Association of State Treasurers. The website aims to “facilitate the return of unclaimed money to the rightful owner” using a multi-state database platform to search and claim forgotten funds.
Users can first go to Unclaimed.org or MissingMoney.com to check to see if they have unclaimed property. Then, if found, users are able to submit a free claim through the platform and, if accepted, connect to the state to securely transfer the funds to the owner.
“Since evidence required to complete a claim will vary by state, carefully read and follow the instructions. For other questions related to your claim, please directly contact the state where your claim was filed,” the website states.
Bureau of the Fiscal Service
According to the U.S. Department of the Treasury, users can go to a platform to find if unclaimed funds are being held by the federal government.
However, it’s important to note that each federal agency maintains its own records and there is no government-wide centralized database on unclaimed government assets, according to the department.
Treasury Direct
The U.S. Department of the Treasury has also launched Treasury Hunt, a tool for users to search for “matured, uncashed savings bonds.” The bonds must be more than 30 years old and no longer earn interest.
IRS refund
If users are looking for more information on a federal tax refund, they can visit the IRS Refunds page.
Users need a Social Security or taxpayer ID number, filing status and the exact refund amount on the return in order to check on the status of the expected refund.
U.S. Department of Housing
The U.S. Department of Housing has set up the HUD Refunds program that allows users to check eligibility for a refund from the Department of Housing and Urban Development (HUD) or Federal Housing Association (FHA).
Workers Owed Wages
The Department of Labor’s Wage and Hour Division has a program that conducts investigations that often recover back wages owed to employees. Here, users can search the Workers Owed Wages website to see if there is unpaid money in their name. If a user is due wages, they can file a claim through the platform to receive them.
(NEW YORK) — Amid much back-and-forth between Starbucks and some of its workers who claim the company stopped Pride decorations from being displayed in some locations, some union employees have gone on strike to try to send a louder message.
Starbucks Workers United (SWU) announced in a press release Monday, sent to ABC News, that baristas from over 150 stores in the U.S. will strike through June 30 to demand a “fair contract and respect for LGBTQIA+ workers.”
The union campaign kicked off its nationwide week of action on Friday at Starbucks’ flagship roastery in Seattle, Washington on the heels of reports that some Starbucks stores were allegedly removing or banning the use of Pride decor, which Starbucks has vehemently denied.
A representative for Starbucks media relations confirmed to ABC News’ Good Morning America on Monday that “a subset of partners at the Seattle Roastery were the first to walk off the job on Thursday evening, an hour before close. The Roastery has been able to stay open through the weekend, though some partners remained on strike through the weekend.”
In addition to what the union representatives hailed a “successful shutdown” of the Seattle operations, the group said its workers “disrupted operations at dozens of stores” closing nearly 40 over the weekend.
“We have seen an average of 12 stores impacted by strike activity per day, at this time,” Starbucks told GMA. “That scope is currently reflected by operator reports today, as well.”
The representative told GMA that strike activity has been “limited to stores represented by Workers United, and at those stores where partners have petitioned for union representation.”
According to the SWU press release, “over 150 stores that represent 3,500 workers” have gone on strike since Friday.
“Workers United continues to spread false information about our benefits, policies and negotiation efforts — a tactic used to seemingly divide our partners and deflect from their failure to respond to bargaining sessions for more than 200 stores,” Starbucks told GMA.
Moe Mills, a shift supervisor who identifies as non-binary and has worked at Starbucks in Richmond Heights outside St. Louis, Missouri for over three years, spoke to GMA Monday via telephone while outside the storefront on strike.
“The whole point of this strike is to let [Starbucks] know that they can’t cancel Pride,” they said. “We take pride in ourselves and our partners and we take pride in our union.”
Mills continued, “we as the partners, and specifically of the union partners, are what makes Starbucks what it is and we want people to know what Starbucks isn’t — that’s what strike with Pride is about.”
On the morning of June 13, 2023, SWU put out a now-viral Twitter thread stating that Starbucks was banning Pride decorations in stores across the U.S.
Two representatives for Starbucks corporate media relations team immediately retorted what they characterized as the union group’s “false assertion,” telling ABC News in a phone interview and written emailed statement that the company is “deeply concerned by false information that is being spread especially as it relates to our inclusive store environments, our company culture, and the benefits we offer our partners.”
“We unwaveringly support the LGBTQIA2+ community. There has been no change to any policy on this matter and we continue to encourage our store leaders to celebrate with their communities including for U.S. Pride month in June,” the company stated. “For Starbucks, U.S. Pride Month in June is just one of the moments we support and celebrate our LGBTQIA2+ partners and the community, and it’s our own partners who inform the commitments and actions we have continued to take for more than four decades.”
“Starbucks has a history that includes more than four decades of recognizing and celebrating our diverse partners and customers – including year-round support for the LGBTQIA2+ community,” the statement concluded.
Later that same evening, SWU released an official response to the coffee company’s earlier statement about Starbucks’ decoration policies.
GMA obtained an internal memo with the subject, “Pride decorations in stores” sent by Starbucks SVP of Talent & Inclusion, Mark Brown on June 13, that reiterated the company’s longstanding guidelines and support for the LGBTQIA2+ community.
“There has been no change to any guidance on this matter. Our retail leaders continue to work with store teams to find ways to authentically celebrate year-round with their communities. This includes how stores decorate for heritage months, including U.S. Pride month in June – keeping in our mind our safety standards, Siren’s Eye guidance, and retail dress code,” the memo stated.
Jack Savin, a shift supervisor who has worked at the State Street Starbucks location in Madison, Wisconsin for over four years, told GMA that their newly unionized location first attempted to put up Pride decorations in May before a district manager later demanded it be removed.
“As someone who identifies as transgender, what I have observed is absolutely heartbreaking and disappointing,” Savin said. “There was no written notice, nor anything put in writing in regards to taking down our pride decorations. We had put up a pride flag at the beginning of May. The location of it was kind of a centerpiece to our community board, which is an area all Starbucks [stores] have. We continued to put up decorations around our store after the first of June, including some rainbow lights in a corner of our cafe, and put up some streamers in a rainbow pattern.”
Savin told GMA their store’s District Manager “came in” on Sunday, June 11 and “told us to take down our decorations.”
Savin said the manager’s reasoning was as follows: “We can’t decorate for pride because it might be offensive and we want to be ‘welcoming for everyone’; that decor for pride or Christmas isn’t ‘welcoming.'”
“I have never heard this reasoning before and [it] completely goes against what Starbucks has said they stand for in the past,” Savin said. “We have been able to decorate before. Us as employees have been able to symbolize and celebrate our queer identities before. So this is not only heartbreaking and disappointing, but also contradictory and weird.”
Savin shared this information with the store’s union representative immediately as more reps across the country and the SWU reported more claims on Twitter about issues with pride decorations in other states.
“Today we’re out here standing in solidarity with other stores who have had horrible experiences with store managers and district managers just ripping down their pride displays,” Mills said.
They added that their store manager, who wished to remain anonymous for safety reasons, wanted “to celebrate his queer employees and put up a Pride display,” that has remained up, which Mills said “was kind of a workaround” because the manager “used very specific Starbucks language and made a Starbucks-themed Pride display. It’s like a very small sign. And that’s the most that we could do safely.”
Alyssa Bingham, a shift supervisor who works with Mills and is currently on strike outside the same location, told GMA on the phone that this is their store’s third strike.
“I think Starbucks’ plan was to wait us out and that hasn’t worked, we have just gained support and power,” she said.
“We managed to close our store completely. They have not reopened at all and that feels wonderful,” Bingham said. “We have a lot of supportive customers. We have music going and it’s a party. It’s a celebration of really our only piece that we have to play in this game, which is our labor and we will spend it as we choose.”
Their colleague Max Yusen, a barista at the same location, told GMA that Monday would probably be “their only day on strike” due to the wave rollout across the country.
“The energy has been really positive and fun,” he said of their first strike that their cafe has been “fully shut down the entire time,” adding that they “don’t really have to worry about managers scabbing or borrowed workers from other stores coming in to work or customers crossing the picket line.”
When GMA attempted to call the location closed due to the workers’ strike, the phone line rang until a recorded message played, asking for a remote access code, before the call ended.
In addition to picket lines, workers protested Starbucks by marching in pride parades across the country, including New York City where they marched alongside the Starbucks corporate float.
“We are striking with pride because it is important for Starbucks to remember that the LGBTQIA+ community makes up a large part of their workforce and happens to a majority of those leading union efforts nationwide,” Jackie Zhou, a New York City-based employee of five years, said in a statement. “On top of this, we are striking for a contract which encompasses protections not only for the LGBTQ+ community but for everyone.”
Starbucks said in its statement Monday: “We apologize to our customers who may experience an inconvenience at these locations and encourage customers to find any of our more than 9,000 stores open nearby.”
CEO Laxman Narasimhan sent a letter to Starbucks Partners on June 23, obtained by GMA, to make clear the company’s support of the LGBTQIA2+ community.
“Despite today’s public commentary, there has been no change to any of our policies as it relates to our inclusive store environments, our company culture, and the benefits we offer our partners,” he stated in the letter. “As Sara Trilling and I recently stated, we continue to encourage our store leaders to celebrate with their communities including for U.S. Pride month in June, as we always have. We must ALL have the same vision for how all people, including LGBTQIA2+ people, should be treated – with respect, support and allyship, because belonging is a core value.”
He continued, “As such, we strongly disapprove of any person or group, seeking to use our partners’ cultural and heritage celebrations to create harm or flagrantly advance misinformation for self-interested-goals.”
As a follow up to that note, EVP and U.S. president Sara Trilling sent a memo titled “Reaffirming Our Commitment to Inclusivity” to U.S. Starbucks partners late Monday night to further clarify the company’s “current guidelines around visual displays and decorations.”
“We intend to issue clearer centralized guidelines, and leveraging resources like the Period Planning Kit (PPK) and Siren’s Eye, for in-store visual displays and decorations that will continue to represent inclusivity and our brand,” she said, referencing their CEO’s previous letter to employees that “there has been no change to any of our policies as it relates to our inclusive store environments, our company culture, and the benefits we offer our partners.”
This issue for Starbucks comes as other companies have come under fire for support of LGBTQ issues. Target recently faced criticism from artists involved in its Pride month products after it made the decision to remove Pride products following a boycott when anti-LGBTQ backlash nationwide boiled over, including employee harassment and bomb threats at stores in Utah, Ohio and Pennsylvania.
In a statement last month, Target said it removed some products from this year’s Pride collection because the company “experienced threats impacting our team members’ sense of safety and well-being while at work.”
“Our focus now is on moving forward with our continuing commitment to the LGBTQIA+ community and standing with them as we celebrate Pride Month and throughout the year,” the company said in the statement.
