AP Money and Business News | MyNorthwest https://mynorthwest.com/category/money/ Seattle news, sports, weather, traffic, talk and community. Thu, 23 May 2024 14:24:46 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.3 Boeing firefighters overwhelmingly reject company’s second ‘best and final’ offer https://mynorthwest.com/3960743/boeing-firefighters-overwhelmingly-reject-company-second-best-final-offer/ Thu, 23 May 2024 14:15:46 +0000 https://mynorthwest.com/?p=3960743 Boeing firefighters overwhelmingly rejected the company’s latest contract offer Wednesday according to the union, IAFF Local I-66 after they stepped away from picket lines for the first time since May 4.

There are about 125 firefighters in the unit, stationed across the Puget Sound and Moses Lake and represented by the IAFF Local I-66 union.

“This round of negotiations resulted in Boeing presenting its second, ‘Best and Final Offer,’ a contradiction in terms, and a clear sign of the corporate giant’s complete lack of respect for our members,” IAFF General President Edward A. Kelly said, according to KIRO 7.

Boeing responded to the firefighter’s rejection with a prepared statement.

“It’s unfortunate the union’s leadership has continued its pattern of bad faith bargaining. The union earlier accepted and agreed to endorse our strong offer which provides an average of $21,000 in increased take-home pay and additional wage increases,” Boeing stated, according to KIRO 7. “Our contingency plan remains in place and ensures that we can provide the same levels of safety and emergency response with highly qualified firefighters indefinitely.”

Boeing said the four-year deal it offered would have raised the firefighters’ average pay 23.1% from $91,000 to $112,000 in the first year with additional pay raises to follow. The company also stated the offer included an “improved wage growth schedule.”

Boeing locked out its firefighters earlier this month after they threatened to strike. The firefighters have been on the picket line since.

Previous coverage: Boeing locks out private firefighters in Seattle

Other union members show up to support Boeing firefighters

As KIRO 7 explained in a story published Saturday, around 300 union workers across Washington joined Boeing firefighters on the picket line in Seattle last Saturday. The first responders have been picketing in six different locations, including Renton, Seattle, Auburn and Everett.

Representatives from more than 400 state and local unions took turns to join the efforts in Seattle near the intersection of East Marginal Way South and 14th Avenue South, leaders said, KIRO 7 stated.

As dozens lined the street outside of Boeing, hundreds of others were preparing at a nearby site.

“This is really about safety. It’s inconceivable to me and to a lot of people in the labor movement that Boeing would choose to lockout their firefighters at a time where the whole world is watching their failure to provide safety in the workplace,” April Sims, president of the Washington State Labor Council, said, according to KIRO 7.

Sims added they wanted to stand in solidarity with Boeing firefighters as they urge the global company to negotiate “fairly with their firefighters.”

“This fight is about not just about the firefighters who are doing the work at Boeing today, but future firefighters who want to join this profession. This is about pay equity, dignity, and respect. And Boeing’s decision to lockout their firefighters puts all of their employees and rest of the workers at their plants at risk,” Sims said, KIRO 7 reported.

“It is the cornerstone of the work that we do to make sure when folks go to work, they can work in a safe environment and they can get home to their families that they love and care about,” Sims added.

‘We’re having a hard time keeping people in our department’

Boeing firefighters got to the picket line after contract negotiations broke down May 4 at 12:01 a.m. A member of the firefighters union’s executive team previously told KIRO Newsradio they are so underpaid that retaining qualified firefighters is nearly impossible.

Locked out: Local Boeing firefighters hit the picket line for livable wages

“Our guys are coming in at $25 per hour and are a couple thousand dollars away from being eligible for food stamps, right now,” union Vice President John Riggsby said.

Union leaders said that has led to a revolving door at Boeing’s private fire department and paramedics are included.

“They’re having to either work a second job or find employment elsewhere, so we’re having a hard time keeping people in our department because of that,” Riggsby said.

KIRO Newsradio has reached out to the firefighters union for an updated comment on the contract offer, but have not yet heard back.

Contributing: KIRO 7; James Lynch, KIRO Newsradio

Steve Coogan is the lead editor of MyNorthwest. You can read more of his stories here. Follow Steve on X, or email him here.

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Image: A sign against the lockout of the Boeing firefighters can be seen at a one of firefighters' ...
Tacoma businesses playing loud music to discourage loiterers https://mynorthwest.com/3960713/tacoma-businesses-playing-loud-music-discourage-loiterers/ Tue, 21 May 2024 16:41:06 +0000 https://mynorthwest.com/?p=3960713 TACOMA, Wash. — As part of efforts to keep transients away and discourage people from loitering, two Walgreens locations and a 7-11 in Tacoma have resorted to playing loud music through an outdoor speaker system.

“William Tell overture, circus, big top what you expect to hear at the circus, Count Dracula organs, and then there’s one more I don’t remember the name of,” Michael Deibert, who lives in the complex next to the Walgreens on Pacific and 84th, said. “I could have my headphones on music playing and I can hear that through the walls over my headphones.”

Walgreens sent KIRO 7 a statement about the loud music it plays at these locations: “The safety of our patients, customers, and team members is our priority. This Walgreens participates in a program designed to discourage loitering by playing music at select times.”

KIRO 7 spoke to some of the people staying in an encampment behind one of the Walgreens locations. The people staying there said they have no intention of leaving.

“They play Beethoven all day,” one of the men said. “Just block it out.”



A 7-11 is also using the same strategy to keep transients away. However, neighbors say the noise is more of a nuisance to them.

“All day long! It goes throughout the night,” Alicia Ratterree said. “I know what it’s for and I don’t necessarily stand for that.”

The City of Tacoma sent KIRO 7 more than a dozen noise complaints that have been filed between the three locations. So far, only one has been issued a citation by the Neighborhood and Community Code Enforcement.

Tacoma Police said citations like this do not fall under police jurisdiction and are typically issued by code enforcement. TPD said they are actively working on a resolution for these complaints because callers are being put through a revolving door without any tangible solutions or changes.

“We’re exploring the option of moving, but we’ve been talking about it for the last year between having to deal with the music, the transients,” Deibert said.

KIRO 7 is still waiting to hear back from 7-11 for comment.



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Image: As part of efforts to keep transients away and discourage people from loitering, three Tacom...
Red Lobster files for bankruptcy, closes dozens of US locations, including Washington store https://mynorthwest.com/3960316/red-lobster-closes-dozens-of-us-restaurants-including-washington-location/ Mon, 20 May 2024 15:32:48 +0000 https://mynorthwest.com/?p=3960316 Red Lobster, the casual dining chain that brought seafood to the masses with inventions like popcorn shrimp and “endless” seafood deals, has filed for Chapter 11 bankruptcy protection.

The 56-year-old chain made the filing late Sunday, days after shuttering dozens of restaurants.

“This restructuring is the best path forward for Red Lobster. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth,” said Red Lobster CEO Jonathan Tibus, a corporate restructuring expert who took the top post at the chain in March.

Red Lobster said it will use the bankruptcy proceedings to simplify its operations, close restaurants and pursue a sale. As part of the filings, Red Lobster has entered into a so-called “stalking horse” agreement, meaning it plans to sell its business to an entity formed and controlled by its lenders.

Red Lobster has been struggling for some time as it has had to deal with lease and labor costs piling up in recent years. The filing could help Red Lobster exit from some long-term contracts and renegotiate many of its leases, unnamed sources familiar with the matter told Bloomberg News last month.

The move comes after restaurant liquidator TAGeX Brands announced last week that it was going to auction off the equipment of over 50 Red Lobster locations that were recently closed as part of the seafood chain’s “footprint rationalization.” The locations span across more than 20 states — cutting back on Red Lobster’s presence in cities like Denver, San Antonio, Indianapolis and Sacramento, California. TAGeX Brands states it is selling equipment from five locations in Florida and California and four restaurants in Maryland and Colorado.

TAGeX Brands’ auctions began last Monday and ran through last Thursday. The sales were “winner takes all” — meaning that one winner will receive the entirety of contents for each location. Images on TAGeX Brands’ website indicated that includes ovens, refrigerators, bar setups, dining furniture and more.

TAGeX Brands called the liquidation “the largest restaurant equipment auction event ever.” In a statement, founder and CEO Neal Sherman said that the goal of such online auctions was to “prevent high-quality items from being discarded in landfills” and instead promote sustainable reuse.

It’s unclear if Red Lobster plans to shutter any additional restaurants in the near future. The Orlando, Florida-based company did not immediately respond to The Associated Press’ requests for comment before publishing its story Tuesday.

Silverdale location is closed; 9 Washington restaurants remain

On Red Lobster’s website, a handful of impacted locations were listed as “temporarily closed” or “unavailable” Tuesday morning.

The TAGeX Brands website indicated some the equipment it will be trying to sell comes from the location in Silverdale. Those who visit the Red Lobster website and head to the page for the Silverdale location will see the hours of operation are marked as “closed” for all seven days of the week.

The Red Lobster closures have not affected the other nine locations in the state of Washington. Restaurants in Federal Way, Kelso, Kennewick, Lynnwood, Olympia, Spokane, Tacoma, Vancouver and Yakima remain open as normal, according to the Red Lobster website.

In addition, the five locations in Oregon have not been affected by the closures. Restaurants in Eugene, Gresham, Medford, Salem and Tigard also are open as usual, the Red Lobster website states.

Have you eaten at one of these restaurants? 6 in Washington up for major culinary award

Image: A sign announcing the closure of a Red Lobster restaurant is posted on the front of a Red Lobster restaurant on May 14, 2024 in Fremont, California.

A sign announcing the closure of a Red Lobster restaurant is posted on the front of a Red Lobster restaurant on May 14, 2024 in Fremont, California. (Photo: Justin Sullivan, Getty Images)

Lingering difficulties for Red Lobster

Maintaining stable management has also proven difficult, with the company seeing multiple ownership changes over its history. Earlier this year, Red Lobster co-owner Thai Union Group, one of the world’s largest seafood suppliers, announced its intention to exit its minority investment in the dining chain.

Thai Union first invested in Red Lobster in 2016 and upped its stake in 2020. At the time of the January announcement on its plans to divest, CEO Thiraphong Chansiri said the COVID-19 pandemic, industry headwinds and rising operating costs had impacted Red Lobster and resulted in “prolonged negative financial contributions to Thai Union and its shareholders.”

For the first nine months of 2023, the Thailand company reported a $19 million share of loss from Red Lobster.

And then there’s been the problem of endless shrimp. Last year, Red Lobster significantly expanded its iconic all-you-can-eat shrimp deal. But customer demand overwhelmed what the chain could afford, which also reportedly contributed to the millions in losses.

Red Lobster’s roots date back to 1968, when the first restaurant opened in Lakeland, Florida. In the decades following, the chain expanded rapidly. Red Lobster currently touts more than 700 locations worldwide.

Editors’ note: This piece originally was published on Thursday, May 16, 2024. It has been updated and republished multiple times since then.

Contributing: The Associated Press; Steve Coogan, MyNorthwest

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Image: A sign is seen on the exterior of a Red Lobster restaurant on April 17, 2024 in Rohnert Park...
Bruce Nordstrom, who helped grow family-led department store chain, dies at 90 https://mynorthwest.com/3960616/bruce-nordstrom-who-helped-grow-department-store-chain-dies-90/ Mon, 20 May 2024 15:26:52 +0000 https://mynorthwest.com/?p=3960616 SEATTLE (AP) — Bruce Nordstrom, a retail executive who helped expand his family’s Pacific Northwest department store chain into an upscale national brand, has died.

Seattle-based Nordstrom Inc. said its former chairman died at his home on Saturday. He was 90.

“Our dad leaves a powerful legacy as a legendary business leader, a generous community citizen and a loyal friend,” said a statement from his sons, Nordstrom CEO Erik Nordstrom and Pete Nordstrom, the company’s president.

The chain traces its roots back to a Seattle shoe store opened by Swedish immigrant John Nordstrom and a partner in 1901.

Bruce Nordstrom and other members of the third generation took leadership reins in 1968. They brought the company public in 1971 and expanded its footprint across the U.S. while also launching the lower-priced Nordstrom Rack stores.

Bruce Nordstrom retired from his executive role in 1995 as the third generation handed over leadership to the fourth. He retired as chairman of Nordstrom’s board of directors in 2006.

He was one of several Nordstrom family members who in 2017 made a push to take the company private, proposing to buy out the 70% of the department store’s stock they didn’t already own. Those talks failed in 2018 but earlier this year, his sons started another series of buyout negotiations.

In addition to two sons, Nordstrom’s survivors include his wife, Jeannie, his sister and fellow philanthropist Anne Gittinger, and seven grandchildren.

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Image: Bruce Nordstrom, left, and Jeannie Nordstrom attend the Nordstrom NYC Flagship Opening Party...
Boeing supplier Spirit AeroSystems is laying off 450 after production of troubled 737s slows https://mynorthwest.com/3960425/boeing-supplier-spirit-aerosystems-is-laying-off-450-after-production-troubled-737s-slows/ Fri, 17 May 2024 13:15:31 +0000 https://mynorthwest.com/?p=3960425 Spirit AeroSystems, a key Boeing supplier that makes the fuselages for its popular 737 Max airplanes is laying off about 450 workers because production has slowed down ever since a panel flew off one of those airplanes operated by Alaska Airlines in midair in January.

A spokesman for Spirit AeroSystems confirmed the layoffs at its Wichita, Kansas, plant on Thursday that would trim its workforce of just over 13,000 people. Spirit is Boeing’s most important supplier on the 737s because it makes fuselages and installs door plugs like the one that flew off the plane. But it’s not clear whether Spirit or Boeing employees were the last ones to touch that panel.

“The recent slowdown in the delivery rate on commercial programs compels a reduction to our workforce in Wichita,” Spirit spokesman Joe Buccino said to The Associated Press (AP).

Spirit also released a short statement on its website that can be linked to from its homepage. It began the same way as Buccino’s statement to the AP did by noting the delivery rate slowdown. It added that it plans to inform workers that will be affected soon.

“In the coming weeks, we will inform affected employees,” the statement reads. “We are committed to implementing this transition in as compassionate a manner as possible.”

Boeing confirmed this spring that it is in talks to buy Spirit, which was once a part of the plane-maker before it was spun off. Buying Spirit back would reverse a longtime Boeing strategy of outsourcing key work on its passenger planes. That approach has been criticized after problems at Spirit disrupted production and delivery of popular Boeing jetliners, including 737s and 787s.

Previous coverage: Boeing says it’s in talks to buy Spirit AeroSystems, key supplier on troubled 737 Max

The International Association of Machinists and Aerospace Workers union expressed concern about the layoffs and said it would try to help workers who lose their jobs in the coming weeks.

“Together, we will continue to work to protect the strength of the aerospace industry in Wichita and ensure our members receive the assistance and resources they need to overcome this challenge and emerge stronger,” the union said.

Contributing: The Associated Press; Steve Coogan, MyNorthwest

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Image: The Spirit AeroSystems sign is seen, July 25, 2013, in Wichita, Kansas....
King County homelessness surges 23% as state releases plan to tackle housing https://mynorthwest.com/3960157/king-county-homelessness-surges-23-state-releases-plan-tackle-housing/ Thu, 16 May 2024 05:23:58 +0000 https://mynorthwest.com/?p=3960157 The King County Regional Homeless Authority (KCRHA) released its 2024 Unsheltered Point-in-Time (PIT) Count Wednesday. Also, earlier this week, the Washington State Department of Commerce released its Housing Advisory Plan for 2023 to 2028 to take on the housing crisis in the state.

Homelessness is up 23% in King County

According to the PIT Count, the number of people experiencing homelessness in King County, the most populated county in Washington, has gone up 23% since 2022. There were 7,685 unsheltered people (57%) and 5,683 sheltered people (43%) for a total of 13,368 in 2022. There were 9,810 unsheltered people (60%) and 6,575 sheltered people (40%) for a total of 16,385 in 2024. However, KCRHA said the numbers are a severe undercount.

The Washington State Department of Commerce has yet to release homeless numbers for the entire state of Washington.

Related news: Washington youth homelessness has dropped 40% but gaps remain, report says

The KCRHA stated homelessness in King County continues to disproportionately affect communities of color. Out of the people experiencing homelessness, 19% identify as Black/African American, but 2020 U.S. Census data shows only 6% of King County’s population identifies as Black/African American.

The KCRHA also noted that “similarly, 7% of people experiencing homelessness identify as American Indian, Alaskan Native, or Indigenous, but that group makes up only 1% of King County’s population.”

“As our community continues the dialogue about race and equity, it is important to recognize that homelessness is an outcome of structural racism and racial inequities,” the KCRHA stated.

According to the National Alliance to End Homelessness, African Americans have been systemically denied rights and opportunities. The statement echoes numbers in Washington’s Housing Advisory Plan.

Washington plans half a million affordable homes in 20 years

At the beginning of this week, the state released a plan to tackle the housing crisis. The plan outlines how the state is preparing to add more than a million new homes in Washington in the next 20 years, with half of those being affordable housing. It also provides a roadmap of the housing crisis, along with recommendations.

The state determined those who make less than 50% of the median family income (MFI) qualify for affordable housing. The U.S. Department of Housing and Urban Development (HUD) created a map showing different levels of income throughout Washington in 2022.

Image: Map of HUD Median Family Income by County in 2022.

Map of HUD Median Family Income by County in 2022. (Image courtesy of Washington State Department of Commerce)

“Gov. Jay Inslee and legislature have taken significant actions in recent years to address this housing shortage. However, housing development is a complex challenge, and additional state and local actions are still needed to ensure that an abundance of new housing options become a reality in Washington’s communities,” the plan stated.

The plan was put together by the Affordable Housing Advisory Board (AHAB) with assistance from Commerce and BERK Consulting.

According to the plan, homelessness got worse in all of Washington’s counties from 2016 to 2022 except for Clark, Cowlitz, King and Klickitat. The AHAB also found that while renting is getting more affordable, homeownership is becoming less affordable. In addition, progress toward reducing racial disparities is slow.

It also found that while Washington housing has dramatically increased, it isn’t creating enough middle and multifamily housing.

Other news: Washington sees decline in new housing permits for second straight year

Recommendations to increase affordable housing are gathering more funding to lower housing costs, reworking zoning laws for building houses, making administrative work more efficient and making construction less expensive. It also recommends increased Housing Trust Fund flexibility, supporting low-income home ownership and fostering more support for relocation assistance.

What led to the Washington housing crisis?

“Much of the problem comes down to a mismatch between the demand for housing and the limited supply available to meet that demand,” the plan explains. “We can trace this most recent period of housing price escalation back to the Great Recession and housing market collapse in 2008-2009.”

AHAB also attributed COVID-19 to the housing crisis, saying housing production was halted and people lost their jobs.

“The housing construction industry was slow to recover and significantly lagged behind the high demand for housing from new workers. In fact, the rate of new home production has yet to reach its earlier peak in 2005-2007,” the plan reads.

But people become homeless for different reasons. Within the plan, people who reside in Washington shared their stories. Juanita had to leave her home because of domestic violence; Abdul experienced a mental health crisis and was hospitalized; Tiarha couldn’t find affordable alternative housing for her and her daughter due to application fees and income requirements.

The path to home security also looks different for each person.

More on housing: Luxury tiny homes creating a stir in Washington home market

Juanita and her family recently found help through a voucher program; Abdul connected with a social worker at a hospital who led him to a counselor; Tiarha and her daughter were able to connect with a resource navigator.

Along with the earlier recommendations, AHAB added that aging, memory care and nursing homes to serve low-income individuals or people moving out of homelessness should be studied.

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X, formerly known as Twitter, here and email her here.

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Image: Tents are seen at a Seattle homeless encampment....
Silver coins are another item you can add to your Costco list https://mynorthwest.com/3959458/silver-coins-are-another-item-you-can-add-to-your-costco-list/ Fri, 10 May 2024 00:22:26 +0000 https://mynorthwest.com/?p=3959458 Large packages of eggs, milk, bread are common items available at Costco, but now the wholesale retail giant is offering something a little more shiny: silver coins. It started selling the coins in March, following a frenzy on the gold bars it sells.

According to CBS News, Costco now sells around $200 million a month in gold and silver. Wells Fargo equity analyst Edward Kelly told CBS sales have climbed because of “Costco’s aggressive pricing and high level of customer trust.”

Costco sells tubes of 25, 1-ounce Canada Maple Leaf Silver Coins, priced at about $680. The coins have a maple leaf on the front and King Charles III on the back.

The silver coins come after the company started selling gold bars last October.

In a company earnings call in October 2023, according to The Associated Press, CFO Richard Galanti claimed the gold bars, sold exclusively online, are “typically gone within a few hours” of appearing on Costco’s website. There is a two-bar limit per member.

Financial expert: Costco’s 1-ounce gold bars are a ‘mug’s game’

The AP reported the one-ounce gold pieces, offered in two designs, were selling for just below $2,000 — slightly more than the current market price of gold, which was around $1,835 per ounce last October.

But Jason Royal, a principal writer and editor for the financial services company Bankrate, previously told MyNorthwest the gold bars are more of a novelty than an investment.

“You’re basically in the hole 10-12% as soon as you purchase,” Royal said. “The returns are a lot a lot more spotty than stocks, and you have to keep it safe.”

However, according to USA Today, Costco sold over $100 million in gold bars in a three-month period ending Nov. 26. The national outlet added the same trend is happening to the silver coins, which were sold out in March.

USA Today also reported that, according to Costco, the coins may be available at local warehouses at a lower price. Members can buy a maximum of five tubes of coins which are nonrefundable.

Contributing: Frank Sumrall, MyNorthwest

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X, formerly known as Twitter, here and email her here.

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Photo: Costco is now selling silver coins....
Ex-Starbucks CEO Schultz: Company needs to refocus on coffee as sales struggle https://mynorthwest.com/3959520/ex-starbucks-ceo-schultz-company-needs-refocus-coffee-sales-struggle/ Tue, 07 May 2024 19:40:00 +0000 https://mynorthwest.com/?p=3959520 Former Starbucks CEO Howard Schultz says the company’s leaders should spend more time in stores and focus on coffee drinks as they work to turn around flagging sales.

In a LinkedIn post published over the weekend, Schultz said many people had reached out to him after Starbucks reported weaker-than-expected quarterly sales and earnings last week.

The Seattle coffee giant said revenue dropped 2% in the January-March period as store traffic slowed around the world. It was the first time since 2020 that the company saw a drop in quarterly revenue. Starbucks also lowered its sales and earnings guidance for its full fiscal year.

Schultz, who bought Starbucks in 1987, is credited with growing the company into the global behemoth it has become with nearly 39,000 stores worldwide. He has been the chairman emeritus of the company since last fall, when he stepped down from Starbucks’ board.

Schultz remains Starbucks’ largest individual shareholder, holding shares that were valued at $1.5 billion at the end of last year.

More on Starbucks: Original Pike Place location reopens after vandalism

In his post, Schultz said senior leaders – including board members – need to spend more time talking to baristas in the company’s stores.

“I have emphasized that the company’s fix needs to begin at home: U.S. operations are the primary reason for the company’s fall from grace,” he said. “The stores require a maniacal focus on the customer experience, through the eyes of a merchant. The answer does not lie in data, but in the stores.”

Laxman Narasimhan, who became Starbucks’ CEO last spring, has been working a half-day shift in Starbucks stores once a month.

At some points in his post, Schultz seemed to be questioning Narasimhan’s turnaround plans. In a conference call with investors last week, Narasimhan mentioned several new products he thinks will drive customers to stores later this year, including boba drinks, sugar-free options and the brand’s first energy beverage.

But Schultz said coffee is what differentiates Starbucks and reinforce the company’s premium positioning.

“The go-to-market strategy needs to be overhauled and elevated with coffee-forward innovation,” he said.

‘What’d you say?’: Starbucks attempts to tamp down the noise

Narasimhan did announce plans for coffee pop-up stores in the U.S. and elsewhere last month. Starbucks plans to use the stores to experiment with limited-edition coffee drinks, teach younger customers about coffee and learn about customers’ preferences.

Schultz also said the company should update its mobile ordering and payment platform to “once again make it the uplifting experience it was designed to be.” He didn’t specify the changes he thinks should be made. Narasimhan said last fall that Starbucks is accelerating the introduction of new digital features and trying to personalize the customer experience within its app.

“We always appreciate Howard’s perspective. The challenges and opportunities he highlights are the ones we are focused on. And like Howard, we are confident in Starbucks long-term success,” Starbucks said Monday in a statement.

Schultz has a history of stepping in when he see Starbucks struggling. He retired as CEO in 2000 and became the company’s chairman, then returned as CEO in 2008 when the company was dealing with the recession.

Schultz stepped down again in 2017 but returned to lead the company on a temporary basis in 2022. In 2023, he named Narasimhan, a former PepsiCo executive, as CEO. Schultz left Starbucks’ board last fall and became chairman emeritus.

Starbucks shares were flat Monday. The company’s stock price has fallen more than 20% since the start of this year.

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Image: Starbucks founder and former CEO Howard Schultz testifies on Capitol Hill in Washington, D.C...
Rising costs: Seattleites may have to pay $41 per month for transportation levy https://mynorthwest.com/3959257/rising-costs-seattleites-may-pay-41-month-transportation-levy/ Sat, 04 May 2024 19:42:15 +0000 https://mynorthwest.com/?p=3959257 Seattle Mayor Bruce Harrell unveiled an updated transportation levy proposal that would cost residents $41 per month.

The eight-year, $1.45 billion levy would fund transportation safety and maintenance in Seattle, according to a news release from the Office of the Mayor.

The news release states the proposal was composed following a public comment period and is “shaped by community input.”

“Over the last month, we’ve received feedback from thousands of Seattle residents who want a transportation system that is safe, connected, and well maintained — this proposal will help get us there,” Harrell said in the news release. “With a focus on the essential needs of our city and its residents, this levy proposal will deliver projects and improvements to keep people moving and to keep people safe. No matter your preferred method of transportation, these investments are designed to make trips safer, more reliable, and better connected, so every Seattleite can get where they need to go.”

Friday’s proposal asks for an additional $100 million. The levy increases the cost by $17 per month, as it originally cost residents $24 per month.

As the mayor’s office explained in its release, levies are paid for by Seattle property owners. Under the expiring levy, those with a median home with a tax-assessed value of $866,000, the cost to taxpayers is about $24 per month.

Harrell’s office said the extra funds are needed for sidewalk construction and repairs, enhanced pedestrian and bicyclist connectivity to light rail stations, transit access and reliability, bridge maintenance and long-term replacement planning, and maintenance and modernization of Seattle’s streets.

How would the sum of more than billion dollars be used?

The largest chunk of the $1.45 billion — $423 million — would go toward repaving main roads that carry the most buses, trucks and cars. It would also improve infrastructure for people walking, rolling, biking and taking transit.

Travel alert: Washington ferry prices have gone up amid wave of riders

The second largest amount, $221 million, would go to keeping the city’s bridges in working condition and preparing for future bridge projects.

Over $150 million would go to community-requested safety improvements to streets, sidewalks, intersections, and crossings to reduce traffic collisions, severe injuries and fatalities

Around $140 million would go to connecting people safely to transit hubs like the Link light rail and bus stops and lessening delays on bus routes. Another $135 million would go to building and preparing sidewalks, crossings and curb ramps.

Everything bike, from expanding protected bike lanes to connecting schools to bike paths, would get $114 million.

Nearly $70 million would be for activating public spaces with business districts and another $100 million would go to installing and upgrading traffic signals.

Reducing air pollution and creating sustainable transportation options would take $59 million.

Last, $25 million would go to supporting trucks delivering goods and $5 million would establish a Transportation Funding Task Force, along with increasing sidewalk repairs.

“After a month of consultation with the public, Mayor Harrell has made the transportation levy proposal even better with additional investments in walking, biking and transit,” said Seattle Department of Transportation (SDOT) Director Greg Spotts. “The revised proposal would give SDOT 17% more purchasing power to maintain our modernize our streets than the current levy to Move Seattle.”

Next steps for Seattle transportation levy

Next, Seattle City Council member Rob Saka will chair the Select Committee on the 2024 Transportation Levy. According to a news release from Saka’s office, the committee is made up of all nine council members tasked with reviewing and updating the mayor’s proposal and putting forth a final proposed levy package before voters this fall.

Other news: Evasive missing zebra mare recovered in North Bend, is safe

The first meeting of the committee is Tuesday.

“We have an incredible opportunity right now to roll up our sleeves and build a better future for Seattle. Building and maintaining bridges, roads, sidewalks, bike lanes and buses may seem like the boring work of government, but few things shape the way we interact with our city and connect with each other more. We have a tremendous responsibility to get this right and deliver the everyday basics in an extraordinary way,” Saka said in the news release.

Once approved by the committee, the proposal will go to the council for a final vote. If approved, the levy will be on the ballot this November.

According to Harrell’s office, Seattle’s current transportation levy provides around 30% of SDOT’s budget and expires this year.

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X, formerly known as Twitter, here and email her here.

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Photo: I-5 near Seneca Street in Seattle....
Comments from Amazon CEO Andy Jassy about unions violated federal law, NLRB judge rules https://mynorthwest.com/3959188/comments-amazon-ceo-andy-jassy-about-unions-violated-federal-law-nlrb-judge-rules/ Fri, 03 May 2024 12:59:29 +0000 https://mynorthwest.com/?p=3959188 A federal administrative law judge ruled that Amazon CEO Andy Jassy violated labor law by making certain anti-union comments during media interviews two years ago.

The ruling, issued Wednesday, follows a complaint filed in 2022 by the National Labor Relations Board that accused Jassy of crossing the line during sit-down interviews in which he said that workers were better off without a union.

In the ruling, National Labor Relations Board Judge Brian D. Gee pointed to statements Amazon’s chief executive made on CNBC’s television program “Squawk Box,” and during two summits organized by Bloomberg News and The New York Times.

More on Amazon: Protests at headquarters object to use of fossil fuels in Oregon

Gee said predictions Jassy made about unionization changing the employee-employer relationship were lawful. But other statements about how employees would be less empowered under a union, “find it harder to get things done quickly and would be better off” without one ran afoul of federal labor law, the judge said.

In a prepared statement, Amazon spokesperson Mary Kate Paradis said the company strongly disagrees that “any part of these comments” were inappropriate and intends to appeal the ruling within the administrative law system.

“The decision reflects poorly on the state of free speech rights today, and we remain optimistic that we will be able to continue to engage in a reasonable discussion on these issues where all perspectives have an opportunity to be heard,” Paradis said.

Jassy’s comments came amid increased unionization efforts at Amazon following a historic victory by the Amazon Labor Union during a union representation vote at a warehouse in New York City. The company has continued to appeal the union’s win and refused to come to the bargaining table.

In his ruling, Gee advised Amazon to avoid “threatening its employees” with similar comments in the future and to post a notice in its facilities nationwide that signaled the company’s compliance with the judge’s finding.

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Image: Andy Jassy, Amazon president and CEO, attends an event on Aug. 15, 2022, in Culver City, Cal...
Binance founder Changpeng Zhao sentenced for allowing money laundering https://mynorthwest.com/3958903/binance-founder-changpeng-zhao-sentenced-allowing-money-laundering/ Tue, 30 Apr 2024 20:27:44 +0000 https://mynorthwest.com/?p=3958903 SEATTLE — Binance founder Changpeng Zhao was sentenced Tuesday to four months in prison for allowing rampant money laundering on the world’s largest cryptocurrency exchange.

A judge credited Zhao for taking responsibility for his wrongdoing but said he was troubled by the now-former CEO’s decision to ignore U.S. banking requirements that would have slowed the company’s explosive growth. The sentence was far less than the three years prosecutors had sought, but defense attorneys had asked that Zhao spend no time in prison.

“Despite wealth, power or status, no person — regardless of wealth — is immune from prosecution or above the laws of the United States,” U.S. District Judge Richard A. Jones told Zhao.

Zhao pleaded guilty in November to one count of failing to maintain an anti-money-laundering program and stepped down as Binance agreed to pay $4.3 billion to settle related allegations. U.S. officials said Zhao deliberately looked the other way as people conducted transactions that supported child sex abuse, the illegal drug trade and terrorism.

“I failed here,” Zhao told the court Tuesday. “I deeply regret my failure, and I am sorry.”

No one has ever been sentenced to prison time for similar violations of the Bank Secrecy Act, defense attorneys Mark Bartlett and William Burck told the judge. But prosecutors argued that if Zhao did not receive time in custody for the offense, no one would, rendering the law toothless.

Binance allowed more than 1.5 million virtual currency trades, totaling nearly $900 million, that violated U.S. sanctions, including ones involving Hamas’ al-Qassam Brigades, al-Qaeda and Iran.

Bartlett and Burck said there was no evidence Zhao personally knew of any specific transaction that would have been barred by U.S. regulations or sanctions. Also, they argued, the number of suspicious transactions Binance handled was a miniscule proportion for a company whose total transactions were about $500 million a day. And they noted that Zhao began making changes to make Binance a model of compliance with banking transparency regulations before stepping down.

In a letter to the court, Zhao wrote that there was “no excuse for my failure to establish the necessary compliance controls at Binance.”

“I wish I could change that part of Binance’s story. But under my direction, Binance has now implemented the most stringent anti-money laundering controls of any non-U.S. exchange, and those controls have been in place since 2022,” he added.

Previous coverage: Binance CEO pleads guilty to money laundering in Seattle federal court

Prosecutors said no one had ever violated the Bank Secrecy Act to the extent Zhao did.

“He says in hindsight he should have done a better job,” Justice Department lawyer Kevin Mosley told Jones. “This wasn’t a mistake. When Mr. Zhao violated the BSA he was well aware of the requirements.”

Zhao knew that Binance was required to institute anti-money-laundering protocols, but instead directed the company to disguise customers’ locations in the U.S. in an effort to avoid complying with U.S. law, prosecutors said.

Zhao, his legal team and family members left after Tuesday’s hearing without speaking to reporters.

The cryptocurrency industry has been marred by scandals and market meltdowns. Most recently. Nigeria has sought to try Binance and two of its executives on money laundering and tax evasion charges.

Zhao was perhaps best known as the chief rival to Sam Bankman-Fried, the founder of the FTX, which was the second-largest crypto exchange before it collapsed in 2022. Bankman-Fried was convicted last November of fraud for stealing at least $10 billion from customers and investors and sentenced to 25 years in prison.

Zhao and Bankman-Fried were originally friendly competitors in the industry, with Binance investing in FTX when Bankman-Fried launched the exchange in 2019. However, the relationship between the two deteriorated, culminating in Zhao announcing he was selling all of his cryptocurrency investments in FTX in early November 2022. FTX filed for bankruptcy a week later.

Zhao’s attorneys pointed to his willingness to come from the United Arab Emirates, where he and his family live, to the U.S. to plead guilty, despite the UAE’s lack of an extradition treaty with the U.S.

They also argued that he would not be safe in prison. Because he is not a U.S. citizen, he is ineligible for placement in a minimum security facility. Given his high-profile status and wealth, as well as Binance’s cooperation with U.S. law enforcement in certain investigations, he might be a target for violence in a medium security prison, they suggested.

The judge said he took that into account in sentencing Zhao to four months, instead of the five-month sentence recommended by U.S. Probation and Pretrial Services.

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Image: Former Binance CEO Changpeng Zhao leaves the U.S. District Court in Seattle on Nov. 21, 2023...
Kroger, Albertsons alter their merger plans, include Haggen in new deal https://mynorthwest.com/3958169/kroger-albertsons-still-hoping-to-merge-agree-to-sell-more-stores-to-satisfy-regulators/ Mon, 22 Apr 2024 16:54:50 +0000 https://mynorthwest.com/3958169/kroger-albertsons-still-hoping-to-merge-agree-to-sell-more-stores-to-satisfy-regulators/ Supermarket chains Kroger, which operates Fred Meyer and QFC stores and Albertsons, which owns Safeway, said Monday they will sell off more stores to ease antitrust concerns over their proposed $24.6 billion merger.

The combined companies say they now plan to sell 579 stores across several states for $2.9 billion, letting go of the most in the state of Washington: 124. That’s 20 more stores than their previous merger plan which the Federal Trade Commission (FTC) and the state of Washington are suing to stop.

The company tapped to buy the stores is C&S Wholesale Grocers, a New Hampshire-based company that includes the Piggly Wiggly Supermarkets chains as part of its portfolio.

Under the initial divestiture plan, announced in September, C&S had planned to purchase 413 stores for $1.9 billion.

Kroger, which would be the acquiring entity in the merger of the giant chains, would sell the Haggen banner. C&S would also license the Albertsons banner in California and Wyoming and the Safeway banner in Arizona and Colorado. C&S would also get access to some private-label brands in the stores. Under the proposal, C&S would keep all of the stores open and honor any labor agreements.

“We are confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come,” C&S CEO Eric Winn said in a statement.

Ferguson has previously expressed fear about the merger

KIRO Newsradio has reached out to Washington State Attorney General Bob Ferguson to see if it’s a big enough move to allay his fears about the merger.

“If Kroger and Albertson’s merge, they will – simply put – dwarf the competition,” Ferguson said when he filed a lawsuit on behalf of the state in January. “Shoppers will have fewer choices and less competition, and that results in higher prices.”

Ferguson has claimed C&S is a small operation he predicts would be quickly overwhelmed by competition from the newly combined Kroger-Albertsons stores.

He compared it to when Albertsons merged with Safeway in 2015. Under a divestiture plan, they sold 146 stores to regional supermarket chain Haggen, which went bankrupt a year later.

The FTC also said the initial plan to divest 413 stores to C&S was “inadequate” and would give C&S a hodgepodge of unconnected stores and brands, leaving it ill-equipped to compete with a combined Kroger and Albertsons.

Kroger, Albertsons try to bolster their case

In a news release issued Monday, Kroger and Albertsons bolstered the case for C&S saying the companies’ divestiture package provides enough corporate and office infrastructure to ensure the company can operate the stores “competitively and cohesively.”

“Importantly,” the statement continued, “the updated divestiture plan continues to ensure no stores will close as a result of the merger and that all frontline associates will remain employed.”

Kroger and Albertsons first announced their proposed merger in October 2022. The companies have said they plan to close the deal in the first half of Kroger’s fiscal year.

Number of stores to be sold in the Kroger-C&S Wholesale plan

State Number of stores Chains affected
1. Washington 124 Albertsons and Kroger stores
2. Arizona 101 Albertsons stores
3. Colorado 91 Albertsons stores
4. California 63 Albertsons stores
5. Oregon 62 Albertsons and Kroger stores
6. Illinois 35 Albertsons and Kroger stores

Contributing: The Associated Press; Steve Coogan, MyNorthwest

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Image: The exterior of a Kroger grocery store in Novi, Michigan, can be seen Jan. 23, 2021....
A study in contrasts: Costco vs. Boeing https://mynorthwest.com/3957413/a-study-in-contrasts-costco-vs-boeing/ Sun, 14 Apr 2024 01:21:34 +0000 https://mynorthwest.com/?p=3957413

In the state of Washington, two corporate giants stand out: Costco and Boeing.

A recent poll conducted by Portland-based DMH Research sheds light on how we perceive these companies and other major players like Amazon, Starbucks, and Microsoft.

The study, obtained by MyNorthwest, polled 500 adults across the region. The poll measured residents’ “perceptions of the state and the economy.”

No more freebies: Costco cracks down on food court access

Costco, the beloved warehouse retailer, enjoys overwhelming positivity among Washington voters. An impressive 90% view Costco favorably, while 5% express negative sentiments.

This retail giant has become synonymous with quality products, competitive prices, and a loyal customer base. A significant piece of Costco’s earnings comes from membership fees, according to the company’s quarterly earnings report. The retailer currently charges $60 a year for annual memberships and $120 a year for its higher-tier plan, called the Executive Membership. Costco membership cards are non-transferable, but the company allows members to give a second household card to one other person in their home. According to Statista, a global data and business intelligence platform, the company made $4.58 billion in membership fees last year.

Related news: Boeing’s CEO got compensation worth nearly $33M last year but lost a $3M bonus

Boeing, on the other hand, faces a tougher crowd. Despite its historical significance and economic impact, only 56% of voters view the aerospace giant positively.

Boeing stock has dropped since Jan. 5, when a door-plug panel blew off an Alaska Airlines Max jetliner flying 16,000 feet above Oregon. The Federal Aviation AdministrationNational Transportation Safety Board and Justice Department have launched separate investigations into the company. All the bad news likely contributed to the company having 35% of people polled having negative impressions.

Amazon and Microsoft share similar numbers, both hovering around 80% positive impressions. These tech titans have become integral to Washington’s economy and innovation landscape. However, as the survey reveals, positive sentiments wane regarding Starbucks. Approximately 62% view the coffee giant favorably, while nearly 34% express reservations.

Interestingly, the survey highlights shifts over time. Starbucks, for instance, saw a modest increase in positive impressions from 53% in 2022 to 62% this year. Meanwhile, Costco and Amazon maintained their strong positions, and Microsoft resonated positively.

The study showed that events and changing perceptions influence the reputations of major businesses in the state. The state’s economic landscape remains dynamic, shaped by these corporate giants and their impact on daily life.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here

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Costco vs. Boeing...
Puget Sound Energy rate hikes are about to hit customers https://mynorthwest.com/3956269/puget-sound-energy-rate-hikes-about-hit-customers/ Tue, 02 Apr 2024 19:04:26 +0000 https://mynorthwest.com/?p=3956269 In a move that has sparked both debate and concern, Puget Sound Energy (PSE), the state’s largest provider of electricity and natural gas, is implementing rate increases that will impact its customers over the next two years.

PSE recently filed requests with the State Utilities and Transportation Commission (UTC) to raise electric and natural gas rates once again. Both rates will increase by less than one percent on May 1.

How it affects you

  • Electricity Customers: If you’re a typical residential electric customer using 800 kWh of energy per month, your monthly bill increased by $7.75 or 8.7% in 2023, resulting in an average bill of $96.65. In 2024, there will be an additional $1.67 or 1.7% increase, bringing your average monthly bill to $98.32.
  • Natural Gas Customers: For residential natural gas customers using 64 therms per month, in 2023, your monthly bill went up by $4.87 or 6.4%, with an average monthly bill of $80.56. In 2024, expect an additional $1.34 or 1.7% increase, resulting in an average monthly bill of $81.90.

Related news: New bill demands transparency for Puget Sound Energy customers

Why the increase?

PSE attributes the rate hikes to a combination of factors:

The company said wholesale gas prices have been climbing steadily, impacting both electricity and natural gas bills. It also said PSE is starting to align with state goals by investing in cleaner energy sources and continued investments are necessary to maintain a reliable energy grid.

The settlement agreements

In December 2022, the UTC) approved a settlement between PSE and other parties. The UTC approved three settlement agreements, establishing a multi-year rate plan for PSE. These settlements address various aspects.
One aspect is revenue requirements as PSE must improve low-income assistance, address overdue bills and enhance conservation incentives. Another is environmental investments like electric vehicle charging, decarbonization research, and electric heat pump programs. Also, pandemic relief, including a partial write-off of certain pandemic-related costs.

The settlement also requires PSE to return $34.6 million in over-collected taxes to customers.

Other news: Could Puget Sound Energy customers soon lose access to natural gas service?

How can you lower your energy bills?

PSE says to not wait to insulate. Insulation and air sealing can help keep your home cool in the summer and lower your heating bill by as much as 8% during colder months. You can also lower the thermostat to higher savings. Also, save buckets by using less hot water. Lastly, check your filters. Dusty filters can lead to your air conditioning/heating systems running inefficiently.

What’s Next?

The new rates take effect on May 1, 2024. So, customers are encouraged to stay informed. For more details, visit PSE’s Rates News & Filings page.

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here

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What’s open on Easter Sunday in Washington? https://mynorthwest.com/3956095/whats-open-easter-sunday-washington/ Fri, 29 Mar 2024 23:20:24 +0000 https://mynorthwest.com/?p=3956095 Easter Sunday is a holiday where Christians celebrate their belief in the resurrection of Jesus Christ, the son of God. It marks the holy day at the very core of Christianity, as The Associated Press (AP) explains.

The day Easter is observed is determined by a calendar calculation involving the moon.

“Easter is celebrated on the first Sunday after the Paschal full moon, which is the first full moon occurring either on or after the spring equinox (March 21),” The U.S. Conference of Catholic Bishops explained, according to the AP.

This year the holiday lands on Sunday, March 31 and it is has arrived.

Many people who choose to celebrate the holiday also treat it as an occasion to dye eggs and deliver various chocolate and other sugary treats in a basket to children of all ages via the story of an elusive rabbit. (And in case you might like some egg-stra fun egg and Easter puns, head to TODAY.com for a few chuckles.)

Whether those celebrating need to get food for a big family meal or candy and a basket, the good news is shoppers should be able to get what they need all weekend, including on Easter Sunday. However, while shoppers can expect most stores to be open that day for last-minute needs, there are a fair number of chains that will be closed on the holiday.

Peep: Western Washington’s high price of Easter

The following is a rundown of the retail stores and restaurants that will be open and closed on Easter Sunday.

Also, operations can also vary significantly by location. When in doubt, call ahead or look up more specific schedules for your neighborhood spots online.

Is Costco open?

No, Costco will be closed on Easter Sunday.

Easter is one of the seven holidays during the year when Costco closes its U.S. warehouses. The next holiday Costco will be closed is Memorial Day, May 27.

Is Target open?

No, Target will be closed on Easter Sunday. A spokesperson confirmed to USA Today the chain will close all of its stores on the holiday.

Customers who search for store locations will also see all stores marked as “closed” on Sunday.

Is Walmart open?

Yes, Walmart will be open for its regular business hours, the company confirmed to USA Today.

Are Sam’s Club locations open?

No, Sam’s Club will be closed on Easter Sunday.

Easter is one of the four holidays during the year when Sam’s Club closes its U.S. warehouses. They are also closed on Thanksgiving, Christmas Day and New Year’s Day.

Are Kroger stores open?

Yes, most of the grocery chain’s stores will be open normal business hours on Easter Sunday, a spokesperson confirmed to the AP.

You can check your local store’s hours here.

Kroger, based in Cincinnati, Ohio, operates 117 stores in the state of Washington. That includes 59 Fred Meyer locations and 55 Quality Food Center (QFC) stores.

Are Safeway and Albertsons stores open?

Yes, Safeway and Albertson’s stores will be open on Easter Sunday, the company confirmed to USA Today.

Head here to see your local Safeway hours. To see your local Albertson’s hours, click here.

Is Whole Foods open?

Yes, Whole Foods locations will be open on Easter Sunday.

But, as the company’s website explains, hours will vary. So, customers are encouraged to check their local store page for more details. Head here to find your local store and check its hours.

Is Walgreens open?

Yes, most of the drug store chain’s stores will be open regular hours on Easter Sunday.

But, as the company’s website notes, hours will vary. So, customers are encouraged to check their local store page for more details. Visit the Walgreens website to find your local store and check its hours.

Is Trader Joe’s open?

Yes, the grocery store chain’s stores will be open during regular business hours on Easter Sunday. Head here to find your local store and get confirmation it will be open.

Weekend revelry roundup: Easter weekend brings colorful, funny, delicious local events

Other stores that will be closed on Easter Sunday

The following is a rundown of some of the nation’s other largest chains that will be closed on Easter Sunday.

  • Aldi
  • Apple
  • Best Buy
  • HomeGoods
  • JCPenney
  • Kohl’s
  • Lowes
  • Macy’s
  • Marshalls
  • Michaels
  • TJ Maxx

Stores and restaurants that are open on Easter Sunday

The following is a rundown of some of the other large chain stores and restaurants that are open on Easter Sunday.

Potential restaurant patrons can expect some locations to be closed or open with limited hours. Going further, some open locations will operate with limited menus.

  • 7-Eleven
  • Applebee’s
  • Arby’s
  • Buffalo Wild Wings
  • Burger King
  • CVS: Hours will vary. Many stores will be open regular hours but some locations are closed or have reduced hours, according to the AP.
  • Dairy Queen
  • Denny’s
  • Domino’s
  • Home Depot: Locations will be open from 8 a.m. to 6 p.m. on Easter Sunday, the company told USA Today.
  • IHOP
  • IKEA
  • McDonald’s
  • Olive Garden
  • Panera Bread
  • Papa John’s
  • PetCo
  • PetSmart
  • Popeyes
  • Red Lobster
  • Red Robin
  • Ruth’s Chris Steak House
  • Staples: Some locations will be open noon-5 p.m., and others will be closed.
  • Starbucks
  • TGI Fridays
  • The Cheesecake Factory
  • Wendy’s

Contributing: The Associated Press

Steve Coogan is the lead editor of MyNorthwest. You can read more of his stories here. Follow Steve on X, formerly known as Twitter, here and email him here.

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Image: People stand in line waiting to enter Trader Joe's to buy groceries in Pembroke Pines, Flori...
Seattle tourism dollars break records following All-Star Week, Taylor Swift https://mynorthwest.com/3956022/seattle-tourism-dollars-break-records-following-all-star-week-taylor-swift/ Thu, 28 Mar 2024 22:48:18 +0000 https://mynorthwest.com/?p=3956022 It was a record-setting year for dollars flowing into Seattle from tourists.

Visit Seattle said tourists spent $8.2 billion last year.

“When we think of visitors’ spending, we think primarily of big-box hotels, airlines, and things like that, but really, 80% of the industry is small businesses,” President and CEO of Visit Seattle, Tammy Canavan, told KIRO Newsradio.

She said those kinds of numbers are worth celebrating.

“It’s a lot of money. And I think that sometimes we forget just how much that is,” Canavan explained. “It’s such a big number that it sort of passes over your head.”

Sunshine and butterflies: Baseball’s Opening Day

Canavan explained that $787 million is spent on state and local taxes.

“So that offsets each household in King County by a significant amount, $800 and something dollars. The economic benefit is really important,” she said.

In a press release from Visit Seattle, the preliminary data indicated:
• A total of 37.8 million visitors came to Seattle and King County in 2023, a 9% increase from 2022 reaching 90.2% of 2019 levels.
• Visitors spent $8.2 billion in Seattle and King County in 2023, a 12.8% increase from 2022 and a 0.7% increase from 2019.
• Visitors paid $787 million in state and local taxes in 2023, a 12.5% increase from 2022 reaching 94.0% of 2019 levels. That amounts to a tax offset of $859 per household in King County in 2023, up from $775 in 2022 and steadily approaching the $965 peak of 2019.
• Tourism supported 65,486 jobs in Seattle and King County in 2023, a 7.7% increase from 2022 reaching 81.5% of 2019 levels.

During MLB All-Star Week (July 7-11), downtown hotel occupancies were about 95%. Downtown hotel revenues on those days were around $5.4 million.

Records were broken the weekend of July 21-23. Seattle hosted a combination of marquee events, including two Taylor Swift concerts, a Mariners home series versus the Blue Jays, six cruise ships, two sizable conventions, the Bite of Seattle food festival and Capitol Hill Block Party.

Downtown hotel revenues peaked for the year on Saturday, July 22 at $7.4 million, setting a new record for the city with a $2 million increase over the record Seattle set on June 17.

KIRO Newsradio: Anchors receive Gracie Awards for outstanding work

“The Seattle metro region is special, and it’s growing. We’re taking action so it thrives for residents and visitors alike,” said King County Executive Dow Constantine.

Canavan said we could see more records broken over the next couple of years.

“The next big huge mega-event will be the FIFA World Cup in 2026,” Canavan said. “That will be like nothing we’ve ever experienced before and won’t again unless they come back. It’s like the equivalent of ten Super Bowls.”

You can read more of Micki Gamez’s stories here. Follow Micki on X, formerly known as Twitter, or email her here. 

Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X, formerly known as Twitter, here and email him here

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Taylor Swift performs onstage during the Taylor Swift | The Eras Tour at Lumen Field on July 22, 20...
Seattle’s budget woes just got worse with new labor agreements https://mynorthwest.com/3955872/seattles-budget-woes-just-got-worse-with-new-labor-agreements/ Wed, 27 Mar 2024 20:40:45 +0000 https://mynorthwest.com/?p=3955872 Despite a hiring freeze and budget belt-tightening, the Seattle City Council may soon vote to increase the city’s budget deficit to pay for wage hikes for nearly 11,000 city employees.

Labor agreements inked between 18 collective bargaining units and the City of Seattle are poised to exacerbate the city’s substantial budget deficit, adding an unexpected $47 million burden by year’s end.

This financial strain compounds an already looming General Fund shortfall projected at $230 million.

According to a new financial report, presented to the Seattle City Council this week by the City’s Budget Office, these labor contracts are anticipated to escalate expenses by an additional $280 million over the next four years.

The figures underscore the precarious financial predicament facing Seattle’s municipal administration. Contrary to expectations of deficit reduction, the city council may soon vote to increase it.

Seattle hasn’t fully recovered from its pandemic revenue issues, with tax revenues yet to rebound to pre-pandemic levels. Compounded by elevated inflation and a downtown workforce with the option to telecommute, the city’s revenue streams have not kept up with expenses.

Where will the money come from for Seattle’s budget?

It’s not so much as “show me the money” — it’s where’s the money to pay for these new labor agreements going to come from.

More from Matt Markovich: What I learned this legislative session is citizens can break a 1-party rule

All five of the recently elected city council members campaigned on promises to refrain from raising taxes to mitigate the deficit.

Meanwhile, Seattle Mayor Bruce Harrell has not proposed any new tax measures to offset the escalating labor costs. Instead, he is advocating for austerity measures, depletion of reserves, and leveraging “unspent resources,” as detailed in the financial report.

In addition to the 18 union contracts affecting 7,000 workers, there exists a new agreement for non-represented employees to receive matching wage hikes.

The coalition agreements stipulate a 5% wage adjustment in 2023, followed by a 4.5% increase in 2024, with base wages indexed to the local Consumer Price Index in 2025 and 2026.

The retroactive payment of 2023 wage adjustments this year was unforeseen during the approval of the 2024 budget last November.

Before the council lies three legislative proposals for ratifying the 18 union contracts and the salary agreement with non-represented employees and for employees in discretionary pay programs.

Estimates provided by the city’s budget office and the city council’s central staff anticipate these agreements will further strain the city’s budget deficit.

The report projects a shortfall of $10.4 million in budgeted resources from the general fund for labor costs in 2023 and 2024.

How Mayor Harrell plans to offset the deficit

To offset this deficit, the mayor intends to allocate all available reserves and utilize “unanticipated unspent resources.”

When asked about this term, the Mayor’s Director of Communications, Jamie Housen, said it refers to unspent portions of the current year’s $7.8 billion budget.

“This happens annually and can be due to staff vacancies, projects that are completed under budget or other savings,” Housen said.

Harrell previously announced a hiring freeze at the start of the year. According to the report savings from the freeze, coupled with undisclosed unspent resources, “may be sufficient to address the portion of the incremental costs that exceed the reserves.”

Regarding the remaining $37 million required to fulfill this year’s labor agreements, Housen stated it would be sourced from non-general fund revenues, tapping into existing planning reserves and similar savings strategies such as the hiring freeze.

Housen also confirmed the mayor and council staff are exploring the possibility of reallocating Seattle’s Jump Start Payroll tax, nicknamed the “Amazon Tax,” for general fund purposes.

The tax is anticipated to yield $250 million annually and was established to deal with homelessness and fund affordable housing.

The city council could reprioritize the money for general fund purposes such as paying for city employee wage increases.

How the mayor and subsequently the city could will tackle the growing deficit won’t be fully addressed until the mayor reveals his 2025 budget in September.

New member chosen: Tanya Woo chosen to join Seattle City Council for citywide seat

In the interim, nearly all of the city’s 11,000 employees are slated to receive pay raises this year, with some benefiting from retroactive wage adjustments.

Expect more talk of belt-tightening in the coming weeks.

Matt Markovich is an analyst and reporter who often covers the state legislature and public policy for KIRO Newsradio. You can read more of Matt’s stories here. Follow him on X, formerly known as Twitter, or email him here.

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Photo: The Seattle City Council is discussing adding to Seattle's budget deficit....
Affordable internet program may end for millions; these are other local options https://mynorthwest.com/3955278/affordable-internet-program-ending-for-millions-here-are-other-local-options/ Sat, 23 Mar 2024 00:40:33 +0000 https://mynorthwest.com/?p=3955278 Over 300,000 Washington residents have been notified that an affordable internet program could end after April.

The Affordable Connectivity Program (ACP) through the Federal Communication Commission currently allows a $30 internet discount for those who qualify as low-income.

ACP currently helps millions of Americans. However, Congress has yet to approve new funding and therefore ACP could end after next month.

“Without action from Congress, this program will sunset this spring and millions of Americans may no longer be able to afford high-speed internet service,” wrote a post by the White House.

As Broadband Breakfast, an online publication devoted to broadband technology and internet policy, noted in its coverage of this issue, last week, 33 Democratic and independent senators co-signed a letter urging Senate and House leaders to use “must-pass” budget legislation to include an extension of the ACP. Sens. John Fetterman, D-Pennsylvania, Raphael Warnock, D-Georgia, and Alex Padilla, D-California, are among the notable senators who signed the letter.

It is also worth noting Republican J.D. Vance, R-Ohio, is already a co-sponsor of a bi-partisan and bi-cameral measure to support an extension of the ACP with $7 billion in funding, Broadband Breakfast explained. Legislation was introduced in January. But that has not yet translated into the continued funding of the ACP.

8 internet providers give options for low-income Washington residents

According to Digital Equity Advisor for the City of Seattle, David Keyes, 77,000 people are using ACP in King County.

With its possible end approaching, many people are wondering how they will afford the extra cost.

On Thursday, the Digital Equity Learning Network (DELN) in King County, held a meeting with representatives from eight internet companies.

MyNorthwest listened in to recap options for those using ACP, or those who qualify for low-income and want cheaper options.

Comcast representative Carla Carrell started off the meeting.

Carrell explained Xfinity, which is part of Comcast, offers Internet Essentials for low-income people. Those who qualify can get download speeds up to 50 Mbps for $9.95/month or up to 100 Mbps for $29.95/month.

To start an application, visit Internet Essential’s website.

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Verizon was next with representative Bliss Collins.

Collins said currently ACP is offered on 5 GB internet plans. However, with ACP benefits ending Collins pointed people toward Verizon’s Forward Program.

Those who qualify can get home internet at $20/month. The lowest plan Verizon offers is $50/month but with the benefit, customers would pay $30/month. To apply, visit Verizon’s website.

Collins also said Verizon is working to make its minute plans more affordable.

T-Mobile was next, offering Metro by T-Mobile or Assurance Wireless.

T-Mobile Representative Bob Stanchina said the ACP benefit won’t stop for customers until the end of May. He said if more funding doesn’t get approved, customers will get a $15 discount from June to August.

He said the lowest cost service with Metro is $30/month but can go as low as $15/month depending on what the customer can afford.

He also said home interest special offers are coming soon with Metro.

Assurance Wireless offers the Lifeline Assistance Program. Stanchina said ACP-only customers should apply for the program. However, those bundled with Lifeline and ACP will automatically fall back on the Lifeline Program.

Astound Internet was next. Representative Briana Woods referred people to Internet First, Astounds’ low-income internet.

Those who qualify can get 50 Mbps for $9.95/month and can apply on Internet First’s website.

Woods also said Astound sent letters and messages to customers using ACP.

PCs for People, a nonprofit offering hotspots and computers, was also in the meeting.

Representative Andrea Lindsay said those within 200% of the federal poverty level can qualify for services.

She added King County residents can purchase a one-time hotspot for $60 and then pay $15 per month.

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Those using ACP can choose to purchase another month for $15, or it will be canceled by default. For more on how PCs for People customers will be affected, visit PCs for People’s website.

Zilply Fiber’s (formerly Frontier) representative Elizanth Brayman also referred people to the Lifeline Program.

InterConnection, a Seattle nonprofit, was also represented in the meeting.

Representative Julie Morris said people who qualify for ACP will also qualify for InterConnection’s services.

InterConnection offers a hotspot for a one-time purchase of $66 and then $14.95/month. It also offers discounted technology.

Morris said InterConnection currently has no hotspots available but will have more next week. To learn more, visit InterConnection’s website.

Representative: ‘Many people are eligible that aren’t participating’

Lumen (formerly Century Link) was the last to go.

“Many people are eligible that aren’t participating,” said Lumen representative Rob Thomas.

Thomas said Lumen is working to send a second notification to those who use ACP. He also referenced the Lifeline Program as an option.

Thomas said the lowest plan at Lumen is $30/month. So those using ACP who were paying zero dollars will now pay $30 unless they cancel.

Thomas also said he’s working with lawmakers to lower internet costs.

DELN representatives said the meeting will be posted on its website and available to watch next week.

Editors’ note: This piece originally was published on Thursday, March 21. It has been updated and updated multiple times since then.

Contributing: Steve Coogan

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X, formerly known as Twitter, here and email her here.

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Photo: Xfinity store...
Washington unemployment rate rises for 5th month in a row https://mynorthwest.com/3955206/washington-unemployment-rate-rises-for-5th-month-in-a-row/ Thu, 21 Mar 2024 03:49:57 +0000 https://mynorthwest.com/?p=3955206 Numbers from the Washington State Employment Security Department (ESD) show the state’s unemployment rate has risen for the fifth consecutive month.

According to ESD data, Washington hasn’t seen this many people receive unemployment checks since September 2021, when residents were about 18 months into the COVID-19 pandemic.

The February unemployment rate was 4.7% — higher than the national number of 4%.

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“Two trends characterized 2023: The first was slowing payroll growth compared to previous post-(COVID-19) years. The second was a tight labor market with low unemployment rates,” ESD’s Chief Labor Economist, Anneliese Vance-Sherman, said in a news release.

More than 9,500 Washingtonians were paid unemployment from last December to January.

The industries that saw the largest job losses from January 2023 to January 2024 were construction (down 9,300 jobs) and information (down 7,800) jobs.

Background: Construction jobs shrink in Seattle metro area

ESD details the industries that hired, lost most people

The workplaces that hired the most people during the year were education and health services (up 24,000 jobs), government (up 21,200 jobs) and leisure and hospitality (up 16,000 jobs).

However, leisure and hospitality also lost the most jobs with arts, entertainment and recreation taking the largest hit.

According to the ESD, most people were hired specifically in ambulatory health care services like doctors’ offices. Many people were also hired in computer systems design and architectural and engineering services.

Ferry County, which is located in Northeast Washington, currently has the largest unemployment rate in the state. It was 11.1% in January. Meanwhile, those in King County are seeing more people hired, with the lowest unemployment rate at 4.4%.

To see a map of each county’s unemployment rate, visit the ESD’s website. To break it down further, visit the Federal Reserve’s website.

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X, formerly known as Twitter, here and email her here.

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Photo: A hiring sign for tree care service work is posted in Wheeling, Ill., Sunday, March 19, 2023...
Federal Reserve still foresees 3 interest rate cuts this year despite bump in inflation https://mynorthwest.com/3955168/federal-reserve-still-foresees-3-rate-cuts-this-year-but-envisions-fewer-cuts-in-future/ Wed, 20 Mar 2024 22:13:25 +0000 https://mynorthwest.com/3955168/federal-reserve-still-foresees-3-rate-cuts-this-year-but-envisions-fewer-cuts-in-future/ Federal Reserve officials signaled Wednesday they still expect to cut their key interest rate three times in 2024, fueling a rally on Wall Street, despite signs that inflation remained elevated at the start of the year.

For now, the officials kept their benchmark rate unchanged for a fifth straight time.

Speaking at a news conference, Chair Jerome Powell said the surprising pickup in inflation in January and February hadn’t fundamentally changed the Fed’s picture of the economy: The central bank still expects inflation to continue to cool, though more gradually than it thought three months ago.

The recent high inflation readings followed six months of steady slowdowns in price increases. Economists and Wall Street investors were looking for some clarification Wednesday about how the latest inflation reports were viewed at the Fed.

The January and February data, Powell said, “haven’t really changed the overall story, which is that of inflation moving down gradually on a sometimes bumpy road towards 2%,” with rate cuts to follow.

In new quarterly projections they issued, the policymakers forecast that stronger growth and inflation above their 2% target level would persist into next year. Overall, the forecasts suggest that the Fed still expects an unusual combination: A healthy job market and economy in tandem with inflation that continues to cool — just more gradually than they had predicted three months ago.

Federal Reserve faces ‘two-sided’ risks, says Chair Jerome Powell

Powell noted that the Fed faces “two-sided” risks as it seeks to determine the timing of its rate cuts.

“We’re in a situation,” the Fed chair said, “where if we ease too much or too soon, we could see inflation come back. And if we ease too late, we could see unnecessary harm to employment.”

Rate cuts would, over time, lead to lower costs for home and auto loans, credit card borrowing and business loans. They might also aid President Joe Biden’s re-election bid, which is facing widespread public unhappiness over higher prices and could benefit from an economic jolt stemming from lower borrowing rates.

The financial markets cheered the message Wednesday from Powell and the Fed, with traders sending the Dow Jones industrial average surging 1%, to another all-time high.

The Fed’s policymakers did make some small adjustments in their outlook: Their projections showed that in 2025, they now foresee only three rate cuts, down from the four they envisioned in their December forecasts.

One reason may be that they expect “core” inflation, which excludes volatile food and energy costs, to still be 2.6% by the end of 2024, up from their previous projection of 2.4%. In January, core inflation was 2.8%, according to the Fed’s preferred measure.

Most economists have pegged the Fed’s June meeting as the most likely time for it to announce its first rate cut, which would begin to reverse the 11 hikes it imposed beginning two years ago. The Fed’s hikes have helped lower annual inflation from a peak of 9.1% in June 2022 to 3.2%. But they have also made borrowing much costlier for businesses and households.

Though consumer inflation has tumbled since mid-2022, it has remained stuck above 3%. And in the first two months of 2024, the cost of services, like rents, hotels and hospital stays, remained elevated. That suggested that high borrowing rates weren’t sufficiently slowing inflation in the economy’s vast service sector.

While the Fed’s rate hikes typically make borrowing more expensive for homes, cars, appliances and other costly goods, they have much less effect on services spending, which doesn’t usually involve loans. With the economy still healthy, there is no compelling reason for the Fed to cut rates until it feels inflation is sustainably under control.

“There’s no urgency for them,” said Luke Tilley, chief economist at Wilmington Trust, a wealth management company. “They’ve got a strong economy, strong labor market.”

U.S. economy remains healthy as unemployment stays low

In most respects, the U.S. economy remains healthy. Employers keep hiring, unemployment remains low, and the stock market is hovering at record highs. Yet average consumer prices remain much higher than they were before the pandemic — a source of unhappiness for many Americans for which Republicans have sought to pin blame on Biden.

And there are signs that the economy could weaken in the coming months. Americans slowed their spending at retailers in January and February, for example. The unemployment rate has reached 3.9% — still a healthy level, but up from a half-century low last year of 3.4%. And much of the hiring in recent months has occurred in government, health care and private education, with many other industries barely adding any jobs.

Other major central banks are also keeping rates high to ensure they have a firm handle on consumer price spikes. In Europe, pressure is building to lower borrowing costs as inflation drops and economic growth stalls. The European Central Bank’s leader hinted this month that a possible rate cut could come in June, while the Bank of England isn’t expected to open the door to any imminent cut when it meets Thursday.

AP Business Writer Alex Veiga contributed to this report from Los Angeles.

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Photo: Federal Reserve Board Chair Jerome Powell speaks during a news conference about the Federal ...