Inflation cooled slightly in November, easing pressure on Fed

Inflation cooled slightly in November, easing pressure on Fed
Inflation cooled slightly in November, easing pressure on Fed
Javier Ghersi/Getty Images

(WASHINGTON) — Consumer prices rose 3.1% in November compared to a year ago, cooling slightly from the previous month and indicating progress in the fight to reduce inflation, a report from the Bureau of Labor Statistics released on Tuesday showed.

The fresh data arrives a day before the Federal Reserve will decide on a potential escalation of its near-historic series of interest rate hikes.

Inflation has fallen significantly from a peak of about 9% last summer, but remains more than a percentage-point higher than the Fed’s target.

The cooldown in November was driven in part by falling gas prices, the BLS said. Over the past month, the average price of a gallon of gas has fallen by about 6%, AAA data shows.

However, an increase in housing costs largely offset the decline in gas prices, the BLS said.

Progress shown in the price-hike data lagged for a separate key metric: core inflation, which leaves out volatile food and energy prices.

Core inflation rose 4.0% in November compared to a year ago, remaining unchanged from the rate demonstrated over the previous month.

Since last year, the Fed has raised its benchmark interest rate at the fastest pace in more than two decades in an effort to slow prices increases.

That series of decisions has hiked interest payments for everything from credit card loans to mortgages, while at the same time consumers remain squeezed by the elevated prices.

The rate increases appear to have slowed some areas of the economy, putting the brakes on the housing market and discouraging businesses from major investments that would carry onerous borrowing costs.

The economy maintained robust employment growth last month but fell well short of the breakneck pace exhibited over the previous year, data from the Bureau of Labor Statistics on Friday showed.

Still, consumer spending has proven resilient. Black Friday sales did gangbuster business as the nation entered a holiday shopping season expected to test shoppers, who account for nearly three-quarters of U.S. economic activity.

Consumers spent a record $9.8 billion online on Black Friday, which amounted to a 7.5% increase over the year prior, according to Adobe Analytics data reviewed by ABC News.

Resilient holiday spending could provide additional fuel for the economy as observers hope for continued expansion but fear the downward pressure imposed by interest rate hikes.

Lately, the economy has rebuked such concerns. The gross domestic product grew at an annualized pace of 4.9% over three months ending in September, more than doubling growth of the previous quarter and easing worries about a possible recession, a report from the Bureau of Economic Analysis in October showed.

Taken together, mixed signals from the economy in recent months have complicated the Fed’s effort to bring down inflation while averting a recession, an outcome known as a “soft landing.”

In theory, the economy should eventually falter as it becomes more expensive for businesses and consumers to borrow. However, the economy has so far resisted an overall slowdown.

Speaking at a press conference in Washington, D.C. last month, Fed Chair Jerome Powell acknowledged the complex economic picture faced by the central bank.

“Inflation has been coming down but it’s still running well above our 2% target,” Powell said. “Given how far we have come, along with the uncertainties and risks we face, the committee is proceeding carefully.”

While mixed economic data creates significant uncertainty, the status of the Fed’s inflation fight remains clear, Powell said, noting that the task will require a further slowdown in price increases.

“The process of getting inflation sustainably down to 2% has a long way to go,” Powell said. “We remain strongly committed.”

However, Powell appears to be weighing the need for continued progress on inflation reduction against the expectation of yet-to-be realized effects from the central bank’s previous rate increases, also known as policy tightening.

“Monetary policy is thought to affect economic conditions with a lag, and the full effects of our tightening have likely not yet been felt,” Powell said at Spelman College in Atlanta earlier this month.

Copyright © 2023, ABC Audio. All rights reserved.

Inflation expected to have cooled in November, easing pressure on Fed

Inflation cooled slightly in November, easing pressure on Fed
Inflation cooled slightly in November, easing pressure on Fed
Javier Ghersi/Getty Images

(WASHINGTON) — Washington, D.C. and Wall Street will closely watch the release of inflation data on Tuesday that’s set to show whether price hikes continued their cooldown in November or defied further progress.

The fresh data will arrive a day before the Federal Reserve decides on a potential escalation of its near-historic series of interest rate hikes, ratcheting up the stakes for the inflation report to be released by the Bureau of Labor Statistics.

Economists expect prices to have risen 3% in November, which would mark a slight slowdown from the inflation rate recorded in the previous month.

The anticipated figure would signal progress in the fight against price increases but would fall short of the significant reduction delivered in October.

Inflation has fallen significantly from a peak of about 9% last summer, but remains more than a percentage-point higher than the Fed’s target.

Since last year, the Fed has raised its benchmark interest rate at the fastest pace in more than two decades in an effort to slow prices increases.

That series of decisions has hiked interest payments for everything from credit card loans to mortgages, while at the same time consumers remain squeezed by the elevated prices.

The rate increases appear to have slowed some areas of the economy, putting the brakes on the housing market and discouraging businesses from major investments that would carry onerous borrowing costs.

The economy maintained robust employment growth last month but fell well short of the breakneck pace exhibited over the previous year, data from the Bureau of Labor Statistics on Friday showed.

Still, consumer spending has proven resilient. Black Friday sales did gangbuster business as the nation entered a holiday shopping season expected to test shoppers, who account for nearly three-quarters of U.S. economic activity.

Consumers spent a record $9.8 billion online on Black Friday, which amounted to a 7.5% increase over the year prior, according to Adobe Analytics data reviewed by ABC News.

Resilient holiday spending could provide additional fuel for the economy as observers hope for continued expansion but fear the downward pressure imposed by interest rate hikes.

Lately, the economy has rebuked such concerns. The gross domestic product grew at an annualized pace of 4.9% over three months ending in September, more than doubling growth of the previous quarter and easing worries about a possible recession, a report from the Bureau of Economic Analysis in October showed.

Taken together, mixed signals from the economy in recent months have complicated the Fed’s effort to bring down inflation while averting a recession, an outcome known as a “soft landing.”

In theory, the economy should eventually falter as it becomes more expensive for businesses and consumers to borrow. However, the economy has so far resisted an overall slowdown.

Speaking at a press conference in Washington, D.C. last month, Fed Chair Jerome Powell acknowledged the complex economic picture faced by the central bank.

“Inflation has been coming down but it’s still running well above our 2% target,” Powell said. “Given how far we have come, along with the uncertainties and risks we face, the committee is proceeding carefully.”

While mixed economic data creates significant uncertainty, the status of the Fed’s inflation fight remains clear, Powell said, noting that the task will require a further slowdown in price increases.

“The process of getting inflation sustainably down to 2% has a long way to go,” Powell said. “We remain strongly committed.”

However, Powell appears to be weighing the need for continued progress on inflation reduction against the expectation of yet-to-be realized effects from the central bank’s previous rate increases, also known as policy tightening.

“Monetary policy is thought to affect economic conditions with a lag, and the full effects of our tightening have likely not yet been felt,” Powell said at Spelman College in Atlanta earlier this month.

Copyright © 2023, ABC Audio. All rights reserved.

GE completes testing sustainable aviation fuel on 10th aircraft engine model

GE completes testing sustainable aviation fuel on 10th aircraft engine model
GE completes testing sustainable aviation fuel on 10th aircraft engine model
Jaap Arriens/NurPhoto via Getty Images

(NEW YORK) — GE Aerospace is taking another step towards its commitment to sustainable flights, completing testing with sustainable aviation fuel (SAF) on its 10th aircraft engine model.

The company announced Monday its finished testing with 100% SAF on 10 aircraft engine models. Currently, GE Aerospace engines power three out of four commercial flights worldwide, the company said.

Among the tests, which have been taking place since 2016, were test flights operated with SAF. Most recently, Emirates Airlines operated a flight on an Airbus A380 powered by four engines made by a GE subsidiary – one of them fueled by SAF.

Current regulations allow commercial flights to operate with a blend of SAF and jet fuel, however airlines, regulators and manufacturers are working towards operating flights with 100% recycled fuel. GE’s tests were conducted with Hydrotreated Esters and Fatty Acids (HEFA) fuel thats made of vegetable oils, waste oils, or fats.

“Right now [SAF] is more expensive and it’s hard to find, but that’s something that’s going to change over time,” Chris Lorence, chief engineer and general manager at GE Aerospace, told ABC News. “As more capacity comes online, our hope is that it’s going to be comparable or better than jet fuel today.”

According to the most recent data from the Environmental Protection Agency (EPA), the transportation sector accounts for 29% of greenhouse gas emissions – with aviation accounting for 8%. Lorence said as the aviation industry continues to grow, GE wants to make sure it’s done in an “environmentally-friendly way” with “more efficient products.”

“Plants, essentially through their lifecycle, recycle carbon in the atmosphere. They suck it out as they grow and they release it when they die. And the beautiful thing about SAF is we’re sort of intercepting that process,” Lorence said. “As the plants remove carbon from the atmosphere, we catch it before it gets returned and released to the environment, converted into fuel and then when the airplanes actually fly, then it gets released back, so that there’s no net carbon that’s created as part of the process.”

With the 10th test complete, data will be sent to ASTM International – the governing body that sets technical standards for different materials, products and systems – including SAF.

The data will also be used by GE to see how SAF impacts engines over time.

“Most of the testing we see coming up now, we’re now going to be component testing and what we call endurance testing where we run, we simulate multiple cycles of aircraft flight to see how it performs over time in expected service,” Lorence said. “So that we can see not just what happens for a single flight, but what happens over a much longer exposure and duration of testing to make sure that there’s no reliability or durability concerns.”

Major U.S. airlines like American, Delta, Southwest and United have committed to achieve net-zero carbon emissions by 2050.

Copyright © 2023, ABC Audio. All rights reserved.

Inside an alleged Amazon union-busting campaign in Kentucky: ‘They want to scare us’

Inside an alleged Amazon union-busting campaign in Kentucky: ‘They want to scare us’
Inside an alleged Amazon union-busting campaign in Kentucky: ‘They want to scare us’
Jeffrey Dean/Bloomberg via Getty Images, FILE

(HEBRON, Ky.) — Two months after Rubi Gomez began working at an Amazon facility in Kentucky, she woke up to a barrage of frantic text messages from her coworkers, she said.

“They were the kind of messages you would get if somebody was in a panic,” Gomez told ABC News.

Managers had confronted employees as they handed out union materials in a parking lot outside the building, checking the same workers’ identification multiple times and alleging that tables set up in the entrance pathway amounted to insubordination, a serious charge that could lead to termination, according to worker testimony and video reviewed by ABC News.

Recounting that hectic day in early November, Gomez said she headed to the scene and took a spot alongside her colleagues, prompting a demand from a manager that she take down the tables. The order frightened Gomez, who said she “wanted to be invisible.” Still, she refused.

The tables violated company policy because they obstructed people entering and exiting the facility, Amazon managers told the workers, the video shows. The workers objected to the claim, saying that their efforts qualified as union activity protected by federal labor law.

Workers kept tabling in support of the union on this occasion and others. Within two weeks, 11 workers had received write-ups telling them that they could lose their jobs if they didn’t stop.

The warnings marked a flashpoint in an alleged surge of anti-union backlash at the facility in recent weeks, workers told ABC News, describing mandatory meetings in opposition to the union, one-on-one questioning of workers active in the campaign, deployment of union-busting employee relations officers, as well as mass emails and text messages sent to employees.

“It’s a massive escalation and it’s meant to have a chilling effect on the union and workplace,” Griffin Ritze, a worker at the facility involved in labor organizing, told ABC News.

In response to ABC News’ request for comment, Amazon Spokesperson Eileen Hards said disciplinary action taken by the company came in response to infractions of company policy.

“These individuals repeatedly refused to follow our policies even after meeting with site managers more than ten times to address the violation and ensure the policies were understood,” Hards said. “This has nothing to do with any cause or group they support, but rather like any employer, we take appropriate action when policies are continually disregarded.”

“We believe employees should have the right to hear, learn about, and discuss important issues that could affect them and their families — and that includes union representation,” Hards added, noting the company believes it can serve employees best by directly responding in the absence of intervention from a union.

“We favor opportunities for each person to be respected and valued as an individual, and to have their unique voice heard by working directly with our team,” Hards said. “The fact is, Amazon already offers what many unions are requesting: industry-leading pay, health benefits on day one, and opportunities for career growth.”

The following account of the unrest at the roughly 4,000-worker facility, located near an airport in Northern Kentucky, draws on interviews with five employees involved in union organizing, as well as audio, video, texts, and messages in the workplace app reviewed by ABC News.

The outcome of the clash between workers and management in Kentucky may hold significance as a bellwether of union activity at Amazon in a moment when the nationwide campaign has encountered difficulty.

Last year, a worker-led independent group unionized a 6,000-employee Amazon warehouse in Staten Island, New York, the first-ever U.S. union at the company in its history.

Since then, however, the Amazon Labor Union, or ALU, has lost two consecutive union elections at other facilities; and certification of the Staten Island victory remains tied up in legal challenges. A breakthrough in the labor-unfriendly South would indicate a significant resurgence for the ALU.

Workers at the facility began signing up colleagues in support of a union in February, Marcio Rodriguez, an employee at the location, told ABC News.

The union drive, Rodriguez said, featured an array of demands: $30 per hour base pay, fixes for faulty equipment, bolstered safety protections, on-site childcare, overtime pay and non-English translations of workplace materials for the facility’s sizable immigrant population.

Within a month, Amazon started holding mandatory meetings discouraging workers from joining the union, Rodriguez said. “I was in six or seven of them,” he added.

In response to ABC News’ request for comment, Amazon Spokesperson Eileen Hards said such meetings allow the company to inform employees about union-related issues.

“Like many companies, we hold meetings where we talk openly, candidly, and respectfully about these topics and encourage employees to learn more — so they have all the information they need in order to make educated decisions,” Hards said.

Workers used a small table as they signed up colleagues and handed out materials near the building’s entrance, Rodgriguez said. Once or twice each day, management checked workers’ identification badges to ensure that they were employed at the facility and permitted to access the site. But workers were largely left alone, he said.

By October, the union campaign had achieved significant progress, announcing that it had signed up over 1,000 employees, or roughly a quarter of the workforce at the facility.

Amazon’s alleged fight against the union campaign escalated over the ensuing weeks, five workers said.

One day in early November, workers used two large tables for union sign-ups, hanging a banner across the front of the tables that resembled a mock $10 billion check meant to indicate the amount of profit the company had earned in a recent three-month period.

Passersby were asked to place a red sticker on a nearby display board to vote for which workplace improvement they would most like to receive some of those profits, such as the $30 per hour pay floor or on-site childcare.

The frequent identification checks and warnings of insubordination began that day, eliciting the flurry of text messages that brought Gomez to the site, workers said. A manager acknowledged to a group of workers that he had checked their identification five times that day, a video reviewed by ABC News shows.

The company held one-on-one sessions two weeks later alerting each of the 11 workers of a write-up they had received as a result of tabling and the risk of termination if they continued, workers said. Jordan Quinn, an employee at the facility involved in the union drive, said he was walking to the bathroom when a manager brought him into a meeting and asked him questions about his conduct for roughly a half hour.

“I’m kind of scared I could lose my job,” Quinn told ABC News. “That’s the whole thing about intimidation. They want to scare us so we back down.”

The workers have filed charges with the National Labor Relations Board, a federal agency, alleging that the write-ups violate their rights to organize on the job and amount to intimidation. The NLRB did not immediately respond to a request for comment.

Amazon has policies in place that prevent obstruction of access to promote safety and deliver a positive employee experience, the company said.

Federal labor law protects workers’ right to solicit union support in the workplace while off the clock, the NLRB says.

Last week, the NLRB issued a decision finding that Amazon had illegally retaliated against union workers at its warehouse in Staten Island, New York over their support for the union or participation in union activity. Illegal tactics undertaken by Amazon included interrogating employees, subjecting them to closer supervision and prohibiting them from handing out union literature.

“We disagree with certain decisions within the ruling, but are glad the judge agreed that the terminated individual should not be reinstated,” Amazon spokesperson Mary Kate Paradis told Retail Dive. “We continue to review other parts of the decision and are considering our next steps in light of this ruling.”

Kate Bronfenbrenner, a labor relations professor at Cornell University, said current staff at the NLRB have broadly protected union organizing carried out by employees at work while off the clock but it’s unclear how the board would rule in the dispute over tabling near the entrance of the Kentucky facility.

The tabling at the heart of the dispute at the Kentucky facility appears to have taken place in a non-work area, affording the workers significant protection under federal law, Bronfenbrenner said. However, Amazon my still be within its rights to prohibit union activity in the area if it has not permitted other third party groups to take part in similar activities at the location, she added.

Zooming out from the specifics of that dispute, Bronfenbrenner said, Amazon’s previous posture toward union campaigns leaves little doubt about its approach to the labor drive in Kentucky.

“Amazon is as anti-union as it gets and it has the resources to take it up a notch from everybody else,” Bronfenbrenner told ABC News.

Since the write-ups, workers have held two marches into the management office decrying alleged retaliation against the union. “The more we put ourselves into that setting, the more resilient I feel like we are,” Marisa Krull, one of the employees who received a written warning, told ABC News.

In recent weeks, the company has resumed mandatory meetings with employees discouraging them from unionizing, workers said. On Friday, Rodriguez and Ritze attempted to speak up for the union at one such meeting but were denied entry by an Amazon employee relations officer, according to audio reviewed by ABC News.

“You’ll be eventually asked to come to a meeting but if you haven’t been asked to come to this one, you’re in the wrong meeting,” the officer said, appearing to raise his voice.

“What are you so worked up about?” Ritze asked. In response, the officer said, “You’re right — I’m very worked up.”

Management has also held additional one-on-one questioning with Rodriguez and Ritze for an investigation into alleged violation of the company’s restrictions for workers while off duty, according to audio reviewed by ABC News.

Further spreading its opposition to the union, the company sent a text message on Monday to employees with a hyperlink to a message on the workplace app entitled, “You have the right to say no,” according to a copy of the message.

The message cautioned workers against signing a card in support of the union and urged them to alert human relations if they “ever feel like you are being treated in a rude, disrespectful, harassing bullied or intimidating manner.”

For now, the workers have started signing workers up without a table, they said.

Gomez said she just moved to a new, more expensive apartment counting on income from the job at Amazon. If she loses it, her savings won’t last long, she said. “I would cry a lot,” she added.

At work, however, she continues to talk about organizing with coworkers and wear a union pin, she said.

Copyright © 2023, ABC Audio. All rights reserved.

DoorDash, delivery apps remove tipping prompt at checkout in NYC

DoorDash, delivery apps remove tipping prompt at checkout in NYC
DoorDash, delivery apps remove tipping prompt at checkout in NYC
Tiffany Hagler-Geard/Bloomberg via Getty Images

(NEW YORK) — DoorDash and Uber Eats issued statements this week announcing changes to their respective tipping policies in response to a new minimum wage increase for app-based food delivery workers in New York City.

Earlier this fall, the New York State Supreme Court ruled that “apps should immediately pay delivery workers the Minimum Pay Rate of at least $17.96 per hour,” according to the New York City Department of Consumer Worker Protection.

In a statement in late November, following the state Supreme Court decision, Vilda Vera Mayuga, commissioner of the New York City Department of Consumer and Worker Protection, hailed the ruling, saying, “The minimum pay rate of at least $17.96 per hour will help lift thousands of New Yorkers and their families out of poverty, while still allowing flexibility for both apps and workers … We thank the court for making the right decision and thank the hundreds of delivery workers who fought for their right to earn a dignified wage.”

Maria Torres-Springer, deputy mayor for Housing, Economic Development, and Workforce, added separately, “Delivery workers are a critical part of our city’s workforce and play a critical role in our local economy, yet to date, they have not been able to earn a living wage. We are grateful for the appellate court’s decision today and expect the delivery apps to start implementing the minimum pay rate immediately. When we lift up working New Yorkers, the whole city succeeds.”

In what they said was a direct result of that ruling, DoorDash and Uber Eats announced plans on Monday for New York City customers that do away with the formerly standard tipping prompt on the checkout page of the apps and add a new service fee to each transaction. Customers can still choose to include a tip once the delivery has been completed, and both companies assured delivery drivers that they will receive 100% of those tips.

While some consumers unaware of the city’s changes may have been caught off guard, DoorDash made an extensive push to explain how its updates would allow it “to better balance the impact of bad policies in NYC for everyone who uses our platform.”

“As we have repeatedly made clear in recent months, the ill-conceived, extreme minimum pay rate for food delivery workers in New York City will have significant consequences for everyone who uses our platform,” DoorDash said in statement about its New York City customer experience. “Unfortunately, these regulations will significantly increase the costs of facilitating delivery in NYC and force us to make a number of operational changes, which is why we’re providing an update on what local consumers and Dashers will be seeing beginning today.”

When the earnings standard was announced in June, DoorDash issued a statement saying the outcome would create unpopular consequences for the delivery worker experience.

In order to meet the new minimum pay rate, DoorDash said at the time that its platform and others would “have to increase costs on each order or reduce services in New York City,” stating that other impacts of the coming changes could include fewer opportunities for Dashers to work when they choose, customers potentially priced out of orders, and possible jobs lost at local restaurants.

DoorDash, Uber Eats and Grubhub set out on a united front earlier this year to argue against the City Council measure in an effort to block such pay raises, but failed when New York Acting Supreme Court Justice Nicholas Moyne rejected those arguments.

“Policies have consequences, and these changes come as a direct result of the extreme earnings standard imposed in New York City,” a DoorDash spokesperson told “Good Morning America” on Thursday. “The City itself acknowledged that platforms could make changes to our tipping structure to help meet the significantly increased costs, which is exactly what we’re doing and therefore should come as no surprise.”

They added, “We’re hopeful that these changes will allow us to better balance the impact across everyone who uses our platform and continue providing the best possible experience as we explore further changes to the platform in the months to come.”

Copyright © 2023, ABC Audio. All rights reserved.

Panera Bread faces second wrongful death suit from caffeinated ‘charged lemonade’

Panera Bread faces second wrongful death suit from caffeinated ‘charged lemonade’
Panera Bread faces second wrongful death suit from caffeinated ‘charged lemonade’
Justin Sullivan/Getty Images

(NEW YORK) — Panera Bread is at the center of another wrongful death lawsuit after a Florida family claimed the restaurant’s caffeinated lemonade drink caused Dennis Brown to go into cardiac arrest.

The popular fast-casual chain issued warnings in late October and added signage on menus for the highly caffeinated “charged lemonade” beverages after a similar lawsuit alleged a woman died after drinking one.

In the wake of that death earlier this year, the restaurant chain at the time advised customers that the drinks contain “about as much caffeine as [Panera’s] Dark Roast Coffee,” and has cautioned customers to “use in moderation,” with disclaimers that it is “not recommended for children, people sensitive to caffeine, pregnant or nursing women.”

A standard order of Panera’s charged lemonade contains 13 milligrams of caffeine per ounce, but the iced drink did not previously account for possible ice dilution in its original nutrition descriptions on menus. ABC News has learned Panera is undertaking the process of updating its menu materials and information.

The 30-ounce large-size charged lemonade was previously listed on Panera’s menu as containing 390 milligrams at time of the first lawsuit, which is just 10 milligrams shy of the recommended daily maximum adult consumption amount of caffeine, according to the U.S. Food and Drug Administration. The Panera menu now states the same drink contains 237 mg of caffeine.

The new lawsuit filed on Monday and obtained by ABC News, alleges that 46-year-old Brown, who was a member of the restaurant’s “sip club” that allows customers to order unlimited drinks, had consumed charged lemonades with his dinner at a Panera location near his job in Florida and later died while he was walking home.

The lawsuit states Panera advertised the plant-based “charged lemonades,” which come in three flavors, as taking lemonade to the next level with “clean caffeine” as an instant energy drink derived from guarana and green coffee extract.

According to ABC Atlanta affiliate station WSB-TV, Brown had a chromosomal disorder, and those close to him — including his supportive living coach, Deann Burgess — said that Brown “did not buy energy drinks or anything like that.” Brown’s family told WSB that Brown avoided energy drinks due to having high blood pressure.

Brown had been drinking charged lemonades for six days before he died, according to the lawsuit.

The suit further claims that the “unregulated beverage” purchased by Brown was “offered side-by-side with all of the store’s non-caffeinated and/or less caffeinated drinks; it was not advertised as an ‘energy drink’ nor were there any warnings to consumers.”

“Accordingly, Dennis consumed the Panera Charged Lemonade, reasonably confident it was a traditional lemonade containing a reasonable amount of caffeine safe for him to drink,” the suit declares.

“Upon information and belief, during his ninety-minutes at PBC, Dennis refilled his charged lemonade two additional times. Dennis had a known habit of drinking three beverages in a row,” the lawsuit further says.

Brown was found unresponsive on the sidewalk and pronounced dead at the scene on Oct. 9

“Panera expresses our deep sympathy for Mr. Brown’s family. Based on our investigation, we believe his unfortunate passing was not caused by one of the company’s products,” a spokesperson for Panera Bread told ABC News. “We view this lawsuit, which was filed by the same law firm as a previous claim, to be equally without merit. Panera stands firmly by the safety of our products.”

The FDA sent a written statement to WSB in Atlanta, writing, “The FDA is saddened to hear of the passing of a consumer and as always, takes seriously reports of illnesses or injury from regulated products.”

The agency added that it “generally does not comment on possible, pending or ongoing litigation” and “monitors the marketplace of FDA-regulated products and takes action as appropriate, including collaborating with the Federal Trade Commission regarding marketing claims.”

Family of college student sues Panera Bread over charged lemonade

The fast-casual eatery was previously named in a wrongful death lawsuit in Philadelphia in connection with the same caffeinated beverages after the family of University of Penn student Sarah Katz, 21, died of cardiac arrest after drinking charged lemonade from Panera.

“We were saddened to learn last week about the tragic passing of Sarah Katz. While our investigation is ongoing, out of an abundance of caution, we have enhanced our existing caffeine disclosure for these beverages at our bakery cafes, on our website and on the Panera app,” a spokesperson for Panera told ABC News then in a statement.

At age 5, Katz was diagnosed with Congenital Long QT Syndrome Type 1, which can result in potentially life-threatening abnormal heart rhythms due to potassium ion channels in the heart not working properly, disrupting the heart’s electrical activity.

According to the lawsuit, obtained by ABC News, at the time Katz drank the charged lemonade, it was not advertised by Panera as an “energy drink.”

“She was very aware of her health,” Katz’s roommate and friend Victoria Conway told Atlanta ABC affiliate WSB. “She was very vigilant to avoid caffeine. She never drank coffee.”

A regular 20-ounce serving size of the charged lemonade contained 260 milligrams of caffeine, and the large 30-ounce size contained 390 milligrams.

“Generally at lower doses, caffeine is not harmful, but at higher doses we begin to discuss the negative effects they can have on our body,” ABC News medical contributor Dr. Darien Sutton said. “The FDA recommends that the average adult drinks no more than 400 milligrams of caffeine a day.”

That amount, 400 milligrams a day — which is approximately four or five cups of coffee — is “not generally associated with dangerous, negative effects” for healthy adults, according to the Food and Drug Administration.

The FDA notes that there is a “wide variation in both how sensitive people are to the effects of caffeine and how fast they metabolize it,” especially for certain conditions and some medications, which the FDA says “can make people more sensitive to caffeine’s effects.”

Copyright © 2023, ABC Audio. All rights reserved.

SAG-AFTRA members vote to ratify three-year contract with studios

SAG-AFTRA members vote to ratify three-year contract with studios
SAG-AFTRA members vote to ratify three-year contract with studios
Chris Delmas/AFP via Getty Images

(LOS ANGELES) — SAG-AFTRA members voted to ratify the deal that successfully ended the historic 118-day strike, the union announced on Tuesday.

The contract was approved with 78% voting in favor of the deal. SAG-AFTRA didn’t reveal the exact number of members who voted but said it was 38.15% of the union.

The union, which represents approximately 160,000 Hollywood performers, cleared members to return to work on Nov. 9 after SAG-AFTRA board members approved the then-tentative deal.

The three-year agreement is effective retroactively to Nov. 9, and expires June 30, 2026, the union said in a press release.

The union released the entire 128-page contract after Thanksgiving, valuing the deal at “more than $1 billion in new compensation and benefit plan funding.”

The deal provides a 7% increase in minimum rates in the first year and the first-ever protections against the use of artificial intelligence to replicate performances, requiring compensation and consent guardrails to protect performers from generative AI technology.

As part of the new deal, streaming services will pay bonuses to shows that reach a certain level of success, bonuses that the union estimates will be about $40 million per year.

“This contract is an enormous victory for working performers, and it marks the dawning of a new era for the industry. Getting to this point was truly a collective effort,” union president Fran Drescher and national executive director and chief negotiator Duncan Crabtree-Ireland said in a joint statement Tuesday night.

The Alliance of Motion Picture and Television Producers (AMPTP), which represents the studios, congratulated the union shortly after the announcement: “The AMPTP member companies congratulate SAG-AFTRA on the ratification of its new contract, which represents historic gains and protections for performers. With this vote, the industry and the jobs it supports will be able to return in full force.”

Actors began striking on July 14, joining the picket line alongside writers who went on strike on May 2, effectively leaving most of Hollywood at a standstill all summer.

The writers’ union, the Writers Guild of America, successfully ended its 148-day strike on Sept. 27, after reaching a tentative deal with the studios. That agreement was ratified by WGA membership on Oct. 9.

Final negotiations between SAG-AFTRA and the AMPTP, the group negotiating on behalf of the studios, began on Oct. 2 and continued throughout the month and into early November. Disney, one of the studios represented by AMPTP, is the parent company of ABC News.

Copyright © 2023, ABC Audio. All rights reserved.

What to know about McDonald’s new changes to classic menu items

What to know about McDonald’s new changes to classic menu items
What to know about McDonald’s new changes to classic menu items
ermingut/Getty Images

(NEW YORK) — McDonald’s burgers have been an American classic since 1955, but the iconic fast food chain has some changes planned to improve its buns, cheese and even how to cook its quintessential burgers.

McDonald’s first announced in April that its signature Big Mac, McDouble, cheeseburger and hamburger would be made with softer buns, caramelized patties cooked with white onions on the grill, cheese slices that melt more and even an extra special sauce.

Chris Young, senior director of global menu strategy, told The Wall Street Journal in late November that McDonald’s current menu is “quick, fast and safe, but it doesn’t necessarily taste great. So, we want to incorporate quality into where we’re at.”

As The Wall Street Journal first reported, there will be more than 50 tweaks to improve the new burgers that have been tested at the company’s Chicago headquarters.

Chef Chad Schafer revealed that the new burger is cooked with onions on top of the beef patty, before a layer of room-temperature cheese is added for faster melting, and all held together with a softer, glossy brioche-style sesame seed bun.

In addition to the new buns with a thicker base to help preserve heat, McDonald’s will use dehydrated onions that rehydrate as they cook on the burgers. Lettuce and pickles will be stored in smaller containers so that restaurant crews will be required to replenish the supply more often from the cooler.

According to the Wall Street Journal, McDonald’s also discovered that cooking six burgers at once, instead of eight as they do now, “improved consistency and delivered fresher patties.”

For fans of the special sauce on a Big Mac, McDonald’s said it plans to increase the condiment usage to half an ounce, so that it can drip out onto the wrapper.

McDonald’s claims the improvements are so good even the Hamburgler is coming out of retirement to steal a bite.

The updated menu items have already been rolling out in restaurants along the West Coast, according to McDonald’s, and a few lucky ABC staffers and their families stopped by the Golden Arches in Los Angeles for a taste test.

Staffers agreed the food was indeed “very saucy” and “very cheesy” and one staffer’s young daughter added, “Yeah, very good!”

The McDonald’s changes are coming at a time when the burger business is heating up and McDonald’s continues to hang on to its market shares amid competition from other popular chains like Shake Shack, In-N-Out Burger and Five Guys.

Business experts like strategist Kathleen Griffith said these tweaks may help McDonald’s keep up with its rivals.

“Being that burger that people know, pulling out the original mascots, that sort of strategy is never going to get you into trouble when you work on driving a consistent customer experience. It’s a good recipe,” Griffith said.

The rolling launch is anticipated to be completed by 2024 and while McDonald’s is not planning to increase prices for these burgers, prices can vary by individual franchises.

Copyright © 2023, ABC Audio. All rights reserved.

Spotify to cut 17% of workforce, CEO says

Spotify to cut 17% of workforce, CEO says
Spotify to cut 17% of workforce, CEO says
TORU YAMANAKA/AFP via Getty Images

(NEW YORK) — Spotify plans to cut about 17% of its staff, CEO Daniel Ek said Monday.

“To be blunt, many smart, talented and hard-working people will be departing us,” Ek said in a note to staff posted on the company’s website.

The layoffs at the Stockholm-based music streaming service, which employs about 9,200 people, follow two rounds of cuts announced earlier this year.

The company said in June that 2% would be cut, following a 6% cut announced in January, according to filings with the U.S. Securities and Exchange Commission.

“Economic growth has slowed dramatically and capital has become more expensive,” Ek said on Monday. “Spotify is not an exception to these realities.”

Copyright © 2023, ABC Audio. All rights reserved.

Alaska Airlines to acquire Hawaiian Airlines for $1.9 billion

Alaska Airlines to acquire Hawaiian Airlines for .9 billion
Alaska Airlines to acquire Hawaiian Airlines for .9 billion
AaronP/Bauer-Griffin/GC Images

(NEW YORK) — Alaska Airlines will acquire Hawaiian Airlines for $1.9 billion, their CEOs announced.

Although the two companies will be merged, they will continue to operate under their current names indefinitely.

As a combined airline, Alaska Airlines will serve 138 destinations, expanding “access throughout the Pacific region, Continental United States and globally,” the companies said.

Honolulu, Hawaii, will become a key hub city for Alaska Airlines, the companies said, “enabling greater international connectivity for West Coast travelers throughout the Asia-Pacific region with one-stop service through Hawai‘i.”

Hawaiian frequent fliers will now join the oneworld Alliance network of airlines, which includes Alaska Airlines, American Airlines and British Airways.

“This combination is an exciting next step in our collective journey to provide a better travel experience for our guests and expand options for West Coast and Hawai‘i travelers,” Ben Minicucci, Alaska Airlines CEO, said.

Peter Ingram, Hawaiian Airlines President and CEO, also spoke about the billion-dollar merger. “Since 1929, Hawaiian Airlines has been an integral part of life in Hawai‘i, and together with Alaska Airlines we will be able to deliver more for our guests, employees and the communities that we serve,” he said.

Copyright © 2023, ABC Audio. All rights reserved.