(DETROIT) — The United Auto Workers union and Stellantis announced Saturday they have reached a tentative agreement, more than 40 days after the union launched a strike against the big three U.S. automakers.
The development comes days after the UAW and Ford reached a tentative agreement.
“Once again, we have achieved what just weeks ago we were told was impossible,” UAW President Shawn Fain said in a statement.
According to the UAW, the tentative agreement includes 25% in base wage increases through April 2028 and will raise the starting wage to more than $30 an hour compounded with estimated cost-of-living allowances.
Stellantis North America COO Mark Stewart in a statement thanked “all the negotiating teams who have worked tirelessly for many weeks to get to this point.”
The UAW said its members will return to work at Stellantis while the agreement goes through the ratification process.
UAW represents nearly 44,000 workers at Stellantis, according to the union.
President Joe Biden called it a “groundbreaking contract” that offers “record raises, more paid leave, greater retirement security, and more rights and respect at work.”
“I applaud the UAW and Stellantis for coming together after hard fought, good faith negotiations to reach a historic agreement that will guarantee workers the pay, benefits, dignity and respect they deserve,” he said in a statement. “I want to applaud the UAW and Stellantis for agreeing to immediately bring back all of the Stellantis workers who have been walking the picket line on behalf of their UAW brothers and sisters.”
On Sept. 15, UAW members launched their strike against Ford, Stellantis and General Motors after they failed to reach a new contract agreement for plants in Michigan, Ohio and Missouri.
The so-called stand-up strike is still ongoing at GM, the UAW said.
The union represents approximately 150,000 workers across the big three automakers.
Allen J. Schaben/Los Angeles Times via Getty Images
(NEW YORK) — Online retailer Shein has become well-known for its massive inventory of trendy clothing produced and sold to consumers on the cheap.
In just a few short years, the company catapulted to the top of the fast fashion world by harnessing influencer culture and outperforming rivals – all while staying secretive about their operations.
“This company just seemed to kind of come out of nowhere. There are so many fashion companies out there. But we’ve never really seen one grow this quickly and take this much market share as quickly as Shein did,” said Elizabeth Cline, author of Overdressed and The Conscious Closet.
It’s now the most-visited clothing website in the world, with customers spending twice as much time on the site than Nike.com, which is the next most popular site, according to Similarweb Digital Data.
The idea behind fast fashion is to get the newest styles on the market as quickly and cheaply as possible, so consumers can snap them up while they’re the most popular, according to experts who spoke to ABC News in a new episode of Impact x Nightline streaming now on Hulu.
Other top fast fashion retailers, like Zara and H&M, normally get runway styles to customers in a few weeks to a few months at a fraction of the luxury price. They try to predict trends for the season and fill stores with clothing they predict consumers will want to buy.
But Shein’s business model is breaking that mold, according to Cline.
“What they do is they use data and algorithms to track trends. And when a trend emerges, they place an order. And then they wait to see which product is going to take off. And only then do they go back to their factories and say, ‘This is selling. We need to make more of it,’” Cline said.
This allows Shein to sell trends to consumers while they are at the height of their popularity.
Shein says the company keeps customer data only for as long as is necessary for compliance and legal purposes.
American companies like Amazon or Meta are similar in this way, but lawmakers and watchdogs are nervous because of Shein’s alleged ties to China. The company was founded in China in 2008 and, according to Shein, they source their products mostly from China.
Sheng Lu, an associate professor of fashion and apparel studies at the University of Delaware, has been researching Shein for the last few years and has been trying to pin down just how many different styles of clothing Shein sells in a year.
Lu estimates they can offer over 1 million different kinds of products in a single year, “far exceeding any retailer currently available in a market,” he said.
That massive churn of products may not cost consumers a lot of money, but some critics say it does come with a price. Some consumers have started pushing back on the company and designers who have collaborated with the brand.
Shein said in a statement to ABC News, “We 100% believe in ethical practices in all capacities and in doing our due diligence have not seen any substantive evidence definitively showing unethical practices.”
In the summer of 2023, a group of designers filed a RICO lawsuit accusing Shein of numerous violations.
“They allegedly are taking the artwork from the designer without paying any kind of a royalty to the designer, and they’re putting it on their own products, and they’re selling it as if it’s their own designs,” attorney Dyan Finguerra-Ducharme, co-chair of Pryor Cashman’s Trademark Practice, told ABC News. “And that is copyright infringement if those allegations are proven.”
In a statement to “Impact,” Shein said, “This claim is built on nothing but conjecture and conveniently placed buzzwords. We have asked the court to dismiss the lawsuit and we will continue to defend ourselves against these claims that are without merit.
ABC News found at least 53 lawsuits alleging copyright infringement against Shein and its related companies. Most of the cases were settled or dismissed, but over a dozen are still ongoing.
Cline says she is also concerned about the lack of transparency of Shein’s suppliers, many of which are in the manufacturing hub of Guangzhou, China.
“They don’t have a close relationship with these factories. They don’t provide their customers with really any information about who their factories are, and what life is like inside of those factories,” Cline said.
Shein has repeatedly declined requests for an interview. Dozens of manufacturers in the area working with Shein also turned down requests for comment, citing confidentiality agreements.
Meanwhile, social media influencers show off their merchandise to their followers in what has come to be known as “#SheinHauls,” linking directly to the retailer for people who want to purchase the same items.
Madison Toth, one of Lu’s students, points to the role of social media in the success of brands like Shein.
“You see somebody wearing it, you like it…and you can just immediately click it and buy it and it’s at your door the next day,” Toth said.
ABC News’ Allie Weintraub contributed to this report.
(TALLAHASSEE, FLORIDA) — Children’s book publisher Scholastic has reversed its decision to create a separate, optional section for its elementary school book fairs for titles written predominantly by and about people of color and LGBTQ people.
Scholastic’s initial decision to make some books optional came as nationwide attempts to ban books spike across the country and as dozens of states continue to implement policies that restrict how the subjects of race, gender and sexual orientation are discussed in schools.
“We understand now that the separate nature of the collection has caused confusion and feelings of exclusion,” said Scholastic in a Wednesday press release. “We are working across Scholastic to find a better way. The Share Every Story, Celebrate Every Voice collection will not be offered with our next season in January.”
Scholastic’s “Share Every Story, Celebrate Every Voice” was made up of 64 titles, according to a preview of the list provided to EdWeek. The list includes books such as “I Am Ruby Bridges” by Ruby Bridges, “I Color Myself Different” by Colin Kaepernick and “She Dared: Malala Yousafzai” by Jenni L. Walsh.
“Because Scholastic Book Fairs are invited into schools, where books can be purchased by kids on their own, these laws create an almost impossible dilemma: back away from these titles or risk making teachers, librarians, and volunteers vulnerable to being fired, sued, or prosecuted,” Scholastic said about its original decision to create a book section that schools can opt out of.
The decision was criticized as censorship, with advocacy groups claiming the move will encourage those behind book bans and restrictive laws.
In the first eight months of the year, the American Library Association (ALA) recorded 695 attempts to censor library materials, impacting 1,915 unique book titles.
The vast majority of challenges were to books written by or about a person of color or LGBTQ authors, according to the ALA.
“Censorship is anti-democratic and undermines one’s freedom to learn,” said the National Black Justice Coalition in a statement. “We condemn Scholastic for its decision to segregate books on race, gender, and sexuality at book fairs in a disappointing effort to appease a loud minority using politics to attack children and public schools to turn out voters using ignorance, fear, and hate.”
Color Of Change, a racial justice advocacy group, said in a penned letter to Scholastic leadership: “The inclusion of Black and queer characters, authors, and stories in school book fairs is not optional. We call on Scholastic’s leadership to remove this exclusionary feature and commit to taking meaningful action to protect Black and LGBTQ books.”
It applauded the decision to not offer a separate section.
Scholastic, alongside several other advocacy groups, recently signed an open letter against book bans. Several of the co-signers on that letter denounced Scholastic’s decision to create a separate section for such stories.
“Sequestering books on these topics risks depriving students and families of books that speak to them,” said PEN America, a nonprofit organization focused on free expression, arguing that book bans “deny the opportunity for all students to encounter diverse stories that increase empathy, understanding, and reflect the range of human experiences.”
(NEW YORK) — The U.S. economy grew at a blistering pace over three months ending in September, more than doubling growth in the previous quarter and rebuking worries about a possible recession. The robust performance, however, complicates the fight to dial back inflation.
Fresh GDP data released on Thursday, which exceeded economist expectations, reinforces other recent indicators of a strong economy resisting the Federal Reserve’s effort to cool price increases with a slowdown.
A blockbuster jobs report earlier this month exceeded economist expectations by nearly twofold. Consumer spending, which accounts for nearly three-quarters of U.S. economic activity, surged in September, according to data released last week.
U.S. GDP grew at a 4.9% annualized rate over the three-month period ending in September, accelerating from a 2.1% annualized rate over the previous quarter.
Such sturdy performance could nudge the Fed to hike rates at its meeting next week, as it tries to combat persistently high inflation.
Speaking at a luncheon in New York City last week, Fed Chair Jerome Powell noted the unexpectedly strong economic performance in recent months.
“We are attentive to recent data showing the resilience of economic growth and demand for labor,” Powell said, adding that such growth could “put further progress on inflation at risk.”
Inflation stands well below its peak last year of over 9%, but progress has stalled in recent months and price growth remains more than a percentage point higher than the central bank’s target rate.
Recent economic growth, however, belies an alarm sounded by one of the most important economic indicators: the 10-year treasury yield.
A rapid rise in U.S. government bond yields over recent weeks has elevated borrowing costs for consumers seeking mortgage loans and corporations pursuing funds to expand their business.
The jump in borrowing expenses threatens to slow economic activity in the coming months. Economists expect GDP growth to slow later this year.
The onset of some financial pain is exemplified by the housing market, where the average interest rate for a 30-year fixed mortgage reached 8% last week, Mortgage News Daily data shows.
High mortgage rates have dramatically slowed the housing market, since homebuyers have balked at the stiff borrowing costs, and home sellers have opted to stay put with mortgages that lock them into comparatively low rates.
Mortgage applications have fallen to their lowest level since 1996, the Mortgage Brokers Association said earlier this month.
Major housing industry groups voiced “profound concern” about rising mortgage rates in a letter last week that urged the Federal Reserve to stop hiking its benchmark interest rate.
Business leaders and policymakers will closely watch when the Fed announces its latest rate-hike decision on Nov. 1.
The central bank expects to raise rates one more time this year, according to projections included alongside a statement last month from the Federal Open Market Committee, or FOMC, the Fed’s decision-making body on interest rates.
The benchmark interest rate currently stands at a range 5.25% to 5.5%, as a result of a near-historic series of rate increases, also known as credit tightening,
“Given the fast pace of the tightening, there may still be meaningful tightening in the pipeline,” Powell said last week.
(NEW YORK) — The U.S. economy is expected to have grown at a blistering pace over the three months ending in September, fueling optimism about the nation’s outlook but complicating the fight to dial back inflation.
Fresh GDP data to be released on Thursday is expected to reinforce other recent indicators of a strong economy resisting the Federal Reserve’s effort to cool prices increases with a slowdown.
A blockbuster jobs report earlier this month exceeded economist expectations by nearly twofold. Consumer spending, which accounts for nearly three-quarters of U.S. economic activity, surged in September, according to data released last week.
Economists expect GDP to have grown at 4.3% annualized rate over the three-month period ending in September — a rate nearly twice as fast as the previous quarter.
U.S. GDP grew at a 2.4% annualized rate over three months ending in June, which marked an advance from the rate recorded over the previous quarter.
Such robust indicators could nudge the Fed to hike rates at its meeting next week, as it tries to combat persistently high inflation.
Speaking at a luncheon in New York City last week, Fed Chair Jerome Powell noted the unexpectedly strong economic performance in recent months.
“We are attentive to recent data showing the resilience of economic growth and demand for labor,” Powell said, adding that such growth could “put further progress on inflation at risk.”
Inflation stands well below its peak last year of over 9%, but progress has stalled in recent months and price growth remains more than a percentage point higher than the central bank’s target rate.
Recent economic growth, however, belies an alarm sounded by one of the most important economic indicators: the 10-year treasury yield.
A rapid rise in U.S. government bond yields over recent weeks has elevated borrowing costs for consumers seeking mortgage loans and corporations pursuing funds to expand their business.
The jump in borrowing expenses threatens to slow economic activity in the coming months. Economists expect GDP growth to slow later this year.
The onset of some financial pain is exemplified by the housing market, where the average interest rate for a 30-year fixed mortgage reached 8% last week, Mortgage News Daily data shows.
High mortgage rates have dramatically slowed the housing market, since homebuyers have balked at the stiff borrowing costs, and home sellers have opted to stay put with mortgages that lock them into comparatively low rates.
Mortgage applications have fallen to their lowest level since 1996, the Mortgage Brokers Association said earlier this month.
Major housing industry groups voiced “profound concern” about rising mortgage rates in a letter last week that urged the Federal Reserve to stop hiking its benchmark interest rate.
Business leaders and policymakers will closely watch when the Fed announces its latest rate-hike decision on Nov. 1.
The central bank expects to raise rates one more time this year, according to projections included alongside a statement last month from the Federal Open Market Committee, or FOMC, the Fed’s decision-making body on interest rates.
The benchmark interest rate currently stands at a range 5.25% to 5.5%, as a result of a near-historic series of rate increases, also known as credit tightening,
“Given the fast pace of the tightening, there may still be meaningful tightening in the pipeline,” Powell said last week.
(NEW YORK) — Ford Motor and United Auto Workers union (UAW) have reached a tentative agreement that would end the strike at Ford, both parties confirmed Wednesday night.
“Record profits mean record contracts. We have a tentative agreement at Ford,” the UAW wrote in a post on X (formerly Twitter).
Ford also issued a statement saying the company was “pleased to have reached a tentative agreement on a new labor contract with the UAW covering” operations in the U.S.
“Ford is proud to assemble the most vehicles in America and employ the most hourly autoworkers. We are focused on restarting Kentucky Truck Plant, Michigan Assembly Plant and Chicago Assembly Plant, calling 20,000 Ford employees back to work and shipping our full lineup to our customers again. The agreement is subject to ratification by Ford’s UAW-represented employees. Consistent with the ratification process, the UAW will share details with its membership,” Ford’s statement concluded.
This deal would still need to be ratified by a majority of Ford’s 57,000 UAW members.
On Sept. 15, UAW members launched their strike against Ford, General Motors and Stellantis after they failed to reach a new contract agreement for plants in Michigan, Ohio and Missouri.
The union, which represents nearly 150,000 workers, demanded a 40% pay increase combined over the four-year duration of a new contract, as well as a 32-hour workweek at 40-hour pay.
Over the last few weeks, workers from other plants also began strikes, with nearly 45,000 UAW members walking off the job.
(NEW YORK) — Being a frequent flyer has gotten crowded and the rewards for being a repeat customer are seeing major changes.
Frontier Airlines is the latest to join the growing list of airlines making a massive overhaul to its frequent flyer programs that will make it much harder to get elite status.
“I can’t afford to earn elite status on any of the big three carriers,” traveler Jacob Brown told ABC News’ Good Morning America. “And now I can’t even afford to earn status on the budget carrier.”
The biggest change to Frontier’s mileage program — formerly known as EarlyReturns, now called FRONTIER Miles — has moved from a point system based on how many miles you fly to how much you spend.
As stated on the carrier’s website about the new mileage program, flyers “can still earn Elite Status with only 20,000 Status Miles or 25 flight segments.”
“Loyalty is when you are a returning customer. Not when you’re a customer once or twice and spend a lot of money,” Brown said.
These new changes are set to start in January 2024.
TPG’s senior aviation editor Ben Mutzabaugh explained to GMA that “if you fly a 2,000 mile flight you used to get 2,000 miles. Now you’ll get [miles] depending on how much your fare is.”
Frontier is the first budget-airline to roll out new rules for its loyalty program, falling in line with Delta and American both of which announced similar changes based on how much travelers spend.
These changes also come as airlines continue to grapple with long lines for airport lounges that have been filled to capacity creating longer waits, including for credit card holders with special rewards.
Delta faced major backlash after first announcing its changes, that CEO Ed Bastian later walked back.
“The uproar that Delta had with their latest changes — was intense. I have never seen anything like that in more than a decade of covering the airline industry,” Mutzabaugh said.
Delta has since reduced the dollar amount flyers need to spend to reach elite status and will allow slightly more lounge access than its original rolled out plan, according to the updated policy.
Southwest has bucked the trend, actually opting to make it easier for its frequent flyers to earn higher status.
“If you’re a free agent for airlines at this point. Just see which airline you like the best,” Mutzabaugh recommended.
(NEW YORK) — AMC Theatres is adding a bit of mystery to the moviegoing experience.
On Tuesday, the theater chain announced its first Screen Unseen event, which it said allows customers to watch a never-before-seen film on the big screen “with a surprise twist — the movie will be unveiled at showtime.”
The inaugural Screen Unseen event is set for Nov. 6 and the film’s rating — the only information revealed beforehand — is PG-13.
This new experience, available at select locations, will cost just $5 plus tax.
The company is also encouraging customers who attend the event to share their thoughts about the film on X, formerly Twitter, using the hashtag #AMCScreenUnseen for a chance to win “a film fanatic prize pack.”
AMC Theatres’ new program bears a striking resemblance to Regal’s Monday Mystery Movie program, which also allows moviegoers to attend a screening of a surprise film for just $5.
(NEW YORK) — For travelers who wish they could squeeze in a final hug or few more minutes at the gate with friends or family before departing on their holiday flights, one airport has a sweet new solution.
Starting Nov. 1, just in time for holiday travel, Philadelphia International Airport will allow ticketed passengers on domestic flights to bring non-traveler guests past security checkpoints with its new PHL Wingmate Pass.
The airport called the pass “an exclusive amenity” that grants non-travelers access to the secure side of the airport.
“Whether you’re supporting family in their journey to their gate or planning a heartwarming surprise for a friend arriving on a domestic flight, a Wingmate Pass will get you there,” the airport stated in an Oct. 11 announcement.
Non-ticketed guests can apply for the free one-day pass, which will give them access to the airport’s terminals from 6 a.m. to 10 p.m.
Megan O’Connell, Philadelphia International Airport’s director of marketing and branding, said that after an influx of inquiries about friends and family members wanting to escort a passenger to or from their gate, the airport developed the free amenity “to help those loved ones spend more time together before take-off.”
Non-ticketed guests interested in visiting a traveler at Philadelphia International Airport can complete an online application one to seven days prior to their desired visit.
Guests who apply in advance, according to the airport, will receive an email after 12 a.m. on the day of their visit with their application status.
Those who apply for same day entrance will receive an email within 15 minutes sharing their application status. If approved, guests will get another email with a digital Wingmate Pass that can be used for entry at the airport’s D/E or A-East security checkpoints.
In addition to post-security access, the pass also comes with exclusive deals to use at select Philadelphia International Airport food and shops concessions.
“We hope that, in addition to meeting loved ones, the public will use the Wingmate Guest Pass to access the airport’s restaurants and shops and enjoy PHL’s renowned Art Exhibitions Program,” O’Connell said.
(NEW YORK) — Starbucks, McDonald’s and other major companies have touched off controversy tied to the Israel-Hamas war, exemplifying the corporate challenges posed by the high-stakes and politically charged conflict.
Starbucks sued its union, Starbucks Workers United, earlier this month after the labor organization posted a since-deleted message on X, formerly known as Twitter, expressing solidarity with Palestinians. The message from the union triggered calls to boycott Starbucks, when some appeared to mistake the union’s position for that of the company.
At McDonald’s, an Israel-based franchise announced free food for members of the Israeli military, prompting a consumer backlash and messages from other franchises distancing themselves from the move.
Hundreds of Google employees, meanwhile, circulated a petition taking issue with a public letter released by CEO Sundar Pichai that they deemed was in favor of Israel, The Washington Post reported.
In response to ABC News’ request, Starbucks pointed to a statement on the company’s website.
“We strongly disagree with the views expressed by Workers United, including its local affiliates, union organizers and those who identify as members of ‘Starbucks Workers United’ — none of these groups speak for Starbucks Coffee Company and do not represent our company’s views, positions, or beliefs,” Sara Kelly, executive vice president and chief partner officer at Starbucks, said in the statement.
A spokesperson for McDonald’s told ABC News that the company is primarily focused on ensuring the safety of employees. To support people in the region, McDonald’s made a $1 million donation split evenly between Red Cross and The World Food Program, the spokesperson added.
Google did not respond to ABC News’ request for comment.
Sharp disagreement nationwide over the Israel-Hamas war has manifested in the response to statements made by the large, often high-profile companies. Corporations have faced blowback from advocates on both sides for stances considered either insufficiently sympathetic toward Israelis or Palestinians. Meanwhile, some executives have resigned amid backlash and some prospective employees have had job offers rescinded over their remarks.
The militant group Hamas launched an unprecedented attack on Oct. 7 that has left at least 1,400 people dead and 4,600 injured in Israel, according to Israeli authorities.
In Gaza, more than 5,000 people have died and 15,200 have been wounded, according to the Palestinian Health Authority.
Over the days immediately after the Hamas attack, the response from some major companies was swift.
“The attacks against civilians in Israel are shocking and painful to watch,” Amazon CEO Andy Jassy said Oct. 9 in a post on X. “Hoping that peace arrives as soon as possible.”
Some advocates, however, reprimanded companies that remained silent in the days immediately after the attack.
“Speaking out doesn’t require companies to take a stand on the Israeli-Palestinian conflict or to sit for a seminar on Middle Eastern politics,” Jonathan Greenblatt, CEO of the Anti-Defamation League, said on X.
In all, more than 150 corporations have released statements condemning the initial attack by Hamas, according to a collection of public statements assembled by Yale University Professor of Management Jeffrey Sonnenfeld.
The list of companies includes top firms such as Microsoft, Goldman Sachs, J.P. Morgan Chase, Verizon and Tesla.
Further, some executives made pointed remarks that highlight a personal connection with Israel.
“I am heartbroken by the atrocities we have witnessed, and over the last few days, I have been on the phone constantly with friends and relatives in Israel,” Pfizer Chairman and CEO Albert Bourla wrote in a LinkedIn post. “I know I am not alone when I express my shock and grief about the ongoing situation.”
Sarah Soule, a professor of organizational behavior at Stanford University’s Graduate School of Business, told ABC News the companies “less scathed” by public backlash have condemned the Hamas attack and acknowledged the long history of conflict in the region.
But, she added, the corporate response to the Israel-Hamas war raises questions about the impact of such statements.
“What problem is being solved by issuing these statements?” Soule said.
Some of the corporate statements condemning Hamas have drawn criticism from advocates who say they fall short of offering sympathy for the suffering and oppression endured by Palestinian civilians.
“The lack of any statement of condemnation of Israeli military tactics or of support for Palestinian rights is particularly concerning, given that many of these corporate leaders and their companies have adopted stances promoting diversity, equity, and inclusion in the workplace,” Council on American-Islamic Relations, or CAIR, said earlier this month.
Starbucks Workers United, a union representing roughly 9,000 workers, took down an initial tweet expressing solidarity with Palestinians. Last week, the union posted an additional statement on X standing with Palestinians while condemning the deaths of innocent civilians.
“We are opposed to violence, and each death occurring as the result of violence is a tragedy,” the statement said. “We absolutely condemn antisemitism and Islamophobia.”
The union filed a countersuit against Starbucks, calling its lawsuit an attempt to damage the union and undermine its organizing efforts.
Sonnenfeld told ABC News the relative strength of public trust in CEOs grants them an opportunity to speak out on important and divisive issues. Companies, however, should weigh the relevance and potential impact of a statement on any given issue, he argued.
“CEOs have a distinctive role in society as trusted voices,” Sonnenfeld said. “Some companies, such as fast food franchises and maybe aerospace defense companies, maybe this isn’t the ideal issue for them. Companies need to decide that.”
