Costco adds membership scanners upon entry to crack down on customers sharing cards
(NEW YORK) — When customers walk in to shop at Costco Wholesale, they flash a membership card to an employee who typically gives a smile and a nod before they can glide their XL cart into the big box retailer. But now, the warehouse store is cracking down on its entry parameters to avoid non-members from slipping inside under a false pretense.
The company has caught on to friends utilizing someone else’s membership card to access the big box store, so to combat the issue, its adding a new system upon arrival.
“Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse. Once deployed, prior to entering, all members must scan their physical or digital membership card by placing the barcode or QR Code against the scanner,” Costco said in a statement online. “Guests must also be accompanied by a valid member for entry.”
The warehouse retailer said an attendant will be at the door to assist any customers with questions or concerns.
“If your membership is inactive, expired, or you would like to sign up for a new membership, the attendant will ask that you stop by the membership counter prior to entering the warehouse to shop,” the statement continued. “Additionally, if your membership card does not have a photo, please be prepared to show your valid photo ID.”
Members without a photo on their card can also go to the membership counter and get their photo taken to add to the card.
(SEATTLE) — Tens of thousands of Boeing workers are set to cast ballots in a vote Thursday that could potentially trigger a major strike against the embattled aerospace company with far-reaching implications for the U.S. economy.
Boeing reached a tentative agreement earlier this week with the International Association of Machinists and Aerospace Workers, or IAM, the union representing 33,000 workers at Boeing plants in Washington State, Oregon and California.
However, union members could potentially reject the contract agreement, walk off the job and send the two sides back to the bargaining table.
A work stoppage would weaken Boeing as it struggles to recover from a years-long stretch of scandals and setbacks, hamstringing the nation’s largest exporter, experts told ABC News. But, they added, workers are frustrated with what they perceive as inadequate compensation and a sense they must sacrifice to make up for the company’s mismanagement.
The ratification vote concludes at 9 p.m. ET, and the union will release the results in a press conference soon afterward. If union members reject the contract, they will take a second vote on a strike that could begin as soon as Friday morning.
“This is a very, very high-stakes game of chicken,” Henry Harteveldt, a travel industry analyst at Atmosphere Research Group, told ABC News.
Here’s what to know about what’s behind the strike and its implications for the U.S. economy:
Why are Boeing workers threatening to strike?
Neither Boeing nor the IAM want a strike. The workers might carry one out anyway.
The tentative agreement struck this week delivers a 25% raise over the four-year duration of the contract, as well as worker gains on healthcare costs and retirement benefits. The union had sought a 40% pay increase over the life of the deal.
The agreement also features a commitment from Boeing to build its next commercial plane with union labor in Washington state.
Boeing touted the strength of its offer earlier this week. “Simply put, this is the best contract we’ve ever presented,” Stephanie Pope, Boeing Commercial Airplanes president and CEO, wrote in a letter to union members obtained by ABC News.
The union echoed support for the agreement, urging workers to ratify the deal.
“We have achieved everything we could in bargaining, short of a strike. We recommended acceptance because we can’t guarantee we can achieve more in a strike,” IAM District 571 President Jon Holden, who leads the union local involved in negotiations, told members in a public letter.
In response to ABC News’ request for comment, a Boeing spokesperson pointed to a letter sent to union members by CEO Kelly Ortberg.
“I hope you will choose the bright future ahead, but I also know there are employees considering another path — and it’s one where no one wins,” Ortberg said.
“For Boeing, it is no secret that our business is in a difficult period, in part due to our own mistakes in the past. Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together,” Ortberg added.
IAM declined to respond to ABC News’ request for comment.
Still, workers may defy the company and the union. For years, West Coast Boeing workers have taken issue with their level of compensation, especially in light of strong company performance and a surge in the cost of living, experts said.
“There are years and years of pent up frustration among Boeing workers,” Jake Rosenfeld, a professor of sociology at the University of Washington who studies labor, told ABC News. “This is an expression of being completely fed up.”
Union members also view themselves as being asked to make sacrifices made necessary by the company’s mismanagement, said Harteveldt, of Atmosphere Research Group.
In January, a door plug blew out of the company’s 737 Max 9 aircraft during an Alaska Airlines flight, prompting a federal investigation. The renewed scrutiny arrived roughly five years after Boeing 737 Max aircraft were grounded worldwide following a pair of crashes in Indonesia and Ethiopia that killed a combined 346 people.
In 2021, after a two-year ban, Boeing 737 Max aircraft were permitted to fly.
Boeing is carrying nearly $60 billion in debt, Pope noted in her letter to union members. The company’s share price has plummeted almost 40% since the outset of 2024. Ortberg took over as CEO last month.
“The workers cannot and should not be expected to bear all of the burden of the changes needed at Boeing,” Harteveldt said.
“But I don’t think Boeing is asking them or expecting them to do that,” Harteveldt added. “Boeing has extended what appears to be a very generous offer with substantial wage increases.”
What’s at stake in a potential Boeing strike?
Boeing, which employs 145,000 U.S.-based workers, is a major U.S. firm with a sprawling network of suppliers, experts said.
The company estimates that it contributes nearly $80 billion to the U.S. economy each year, and indirectly accounts for 1.6 million jobs.
A prolonged strike would weaken production with the potential to slow output, diminish income and trigger layoffs, Harteveldt said.
“There’s a risk of a downward spiral,” Harteveldt said.
Such a strike would not impact flight activity or down planes, however, since the workers at issue take part in manufacturing new products. That stands in contrast with an averted railroad strike in 2022, which would have halted a sizable share of the nation’s cargo trains.
“This wouldn’t be as devastating,” Rosenfeld said.
Still, he added, a potential strike would hold implications for a signature U.S. firm.
“It would further damage an iconic company that has already had years of setbacks,” Rosenfeld said.
(NEW YORK) — Inflation is down significantly from its 9.1% pandemic-era peak in 2022, but the cost of food — especially groceries — may continue to puzzle some consumers at checkout lines as new data showed two major categories with slight price increases.
Despite signs of overall inflation cooling compared to a year ago, the current rate of 2.9% remains higher than the Federal Reserve’s target.
The latest Consumer Price Index report for August, released by the Bureau of Labor Statistics on Wednesday, showed that while inflation has softened, staples such as groceries are up 1.1% compared to 2023 with higher prices on some common household products like eggs and meat, poultry and fish.
Breaking down the latest inflation data on food and grocery prices
The food index, which is comprised of food away from home and food at home, has increased 2.1% over the last year — and after rising 0.2% in each of the previous two months, was up another 0.1% in August.
There was a slight 0.3% drop last month for takeout and dining, according to the CPI, but food at home remained unchanged.
“Food away from home slowed a little bit at 3.9% year over year, versus that .9% for the food at home category,” Dr. Michael Swanson, Wells Fargo’s Chief Agriculture Economist, told ABC News. “So they’re both slowly kind of trending back down, but still, that’s a big gap and it’s been a pretty persistent gap, which really speaks to the wages at the restaurant level.”
He reminded that “if you can bring yourself to spend a little time prepping food or cooking food at home, you’re going to save yourself a lot of money.”
Grocery prices slowly rise in two major categories, what it means
Food at home rose at a slower pace than overall inflation at .09% over the last year, but two of the six major grocery store food groups — meats, poultry, fish, and eggs — rose last month and by 3.2% over the last 12 months.
The popular animal proteins went up 0.8% in August and eggs increased 4.8%, as dairy and related products increased 0.5% in August.
“When we see a category like eggs where it came in at $3.20 for a dozen at the national number — vs. a year ago in August where it was $2.04 and the answer is, why?” Dr. Swanson posited. “We know that we dealt with avian influenza early in the year, barns are being repopulated, but we’re not right back to where we were previously. So there’s a good, clear story about what happened there.”
“The big dollar category is meat, poultry and eggs — of the food at home category — which had the two worst performers across the entire supermarket,” Swanson said. “It wasn’t really that the ranchers got more money or the wholesalers got more money this month, we saw the retailer spreads move up.”
Food price predictions as we inch towards fall, holidays
Swanson likened food price fluctuations to seasonal weather patterns that yield long term benefits: “For example, how much snow did you get in California and will there be enough melt and water to fill the reservoirs to then be able to grow more strawberries.”
“We’re gonna have the biggest corn and soybean crop ever in the history of United States, according to the USDA,” Swanson said, which he explained has dropped the prices “way down from a year ago.” He continued, “that’s really important to the consumer ultimately, because that’s what impacts [the price of] chickens, beef and everything else — so there’s good news, but it’s not here just yet.”
How grocers are meeting shopper demand for lower prices
“No retailer simply gives you money, if they’re going to give you lower prices or better value, it’s because they went out and fought with their suppliers to get it for you,” he explained.
“What we’re seeing in that universe of wholesalers and food manufacturers, they’re starting to get a lot more pressure from the retailers to say, ‘Help me out here, because I need to do more for our shoppers,'” Swanson said. “It’s a slow process, but it’s been a complete tide shift in mentality and so all the retailers, to some degree have gone back to say, ‘You just have to do better than that.'”
Swanson found in looking at the Federal Reserve Board which tracks capacity utilization in food manufacturing, that “during the peak of the crisis — they didn’t have any spare capacity, so they weren’t interested in negotiating with food retailers like Walmart.”
Since that’s no longer the case, Swanson said we’re starting to see “a little bit more and more slack” which makes wholesalers “more susceptible to arm twisting from the food retailers.”
(NEW YORK) — Toy giant Fisher-Price is recalling hundreds of thousands of dumbbell toys due to a potential choking hazard.
The dumbbell toys were included in the Fisher-Price Baby Biceps Gift Set, according to the Consumer Product Safety Commission, which announced the recall on Thursday. About 366,200 recalled units were sold in the United States, with another 37,850 sold in Canada.
Fisher-Price states on its recall website that the gray caps on the dumbbell toys can separate, leading to a potential choking hazard for infants. The company recommends taking away recalled toys from kids immediately.
The CPSC states that the dumbbell toys were sold between April 2020 through August 2024 and were part of Fisher-Price’s Baby Biceps Gift Set, which includes three additional toys and is marketed as suitable for children ages 3 months and up.
According to Fisher-Price and the CPSC, the dumbbell component features a plastic gray bar and red and orange plastic “weights” with gray caps on each side of the bar. The recalled dumbbell toys bear the model number GJD49 on the back of the kettlebell toy in the gift set.
The toys were manufactured in China and Vietnam and sold in the U.S. at stores nationwide, according to the CPSC. The toys were sold at Buy Buy Baby, Fred Meyer, Hobby Lobby, Kohls, Marshalls, Target, TJMaxx and Walmart stores and online at Amazon.com, Target.com, Walmart.com, Zulily.com and other websites, retailing for about $18.
Fisher-Price says it has received seven reports of incidents where the gray caps separated from the toy, but has not received any reports of injuries as a result of the incidents.
Customers with the recalled dumbbell toys can reach out to Fisher-Price for a $10 refund on the company’s recall website, which also provides instructions on how to dispose of the recalled toys. Fisher-Price says a receipt or proof of purchase is not required to receive a refund for the dumbbell toy.
ABC News has reached out to Fisher-Price for comment.