Lower gas prices, action against scandal-plagued Chinese food supplier and expanded Nissan recall top our roundup of the day's top business news stories.
OSI Group Takes Scandal-Hit Supplier off the Menu
Aurora, IL-based OSI Group, the parent company of Chinese food supplier, Shanghai Husi Food Co., said it is withdrawing all of that scandal-plagued company’s products from the marketplace, Reuters reports. Shanghai Husi is at the center of an international food safety scandal, which has spread from China to Hong Kong and Japan, over allegations it mixed fresh and expired meat. OSI Group announced it is conducting an internal investigation into current and former senior management and that it will take “swift and decisive action.” McDonald's Corp, KFC-parent Yum Brands Inc. and Starbucks Corp. are among the global food brands that had been using Shanghai Husi products before a local television report revealed staff at Shanghai Husi using long-expired meat.
Tyson Foods Shutting Down Plants
Tyson Foods Inc. plans to shut down three prepared food facilities it acquired in 2001, The Associated Press reports. Tyson is preparing to acquire Chicago-based Hillshire Bands, Inc. The three plants produce some foods similar to some of Hillshire’s signature products, including deli meats and hot dogs. Tyson’s Cherokee, Iowa, plant will close as of Sept. 27. The Buffalo, New York, and Santa Teresa, New Mexico, plants should close during the first half of 2015, Tyson said. The closures will results in the loss of about 950 jobs. ?Arkansas-based Tyson plans to use more of the available capacity it has at some other prepared food plants.
Get Pumped! Largest Drop This Year for Gas Prices
A national survey finds the average U.S. price of regular-grade gasoline has dropped 9 cents a gallon over the past two weeks to $3.58, The Associated Press reports. The price drop, the largest in 2014 thus far, comes as U.S. refiners have ample supplies and are hoping that aggressively cut wholesale prices will drive sales, industry analyst Trilby Lundberg said Sunday. Midgrade averages were $3.78, and premium averages were $3.93. The lowest average gas price Lundberg found in the lower 48 states was $3.23 in Tulsa, Oklahoma. The highest was $4.03 in San Francisco.
Faulty Towers: Nissan Recall Expands to 226,000+ Vehicles
Nissan is recalling more than 226,000 additional vehicles due to a defective air bag that has affected much of the global auto industry, The Associated Press reports. Nissan North America Inc. is recalling certain lines of its Infiniti, Maxima, Pathfinder and Sentra cars for the model years 2002 to 2004. The faulty air bags, made by Tokyo-based car parts supplier Takata Corp., have already been blamed for the recall of millions of cars around the world in recent years, including those made by BMW, Chrysler, Ford, Honda, Mazda and Toyota. The air bag inflators can rupture, causing metal fragments to fly out when the air bags are deployed in crashes.
The Revolution will be Deep-Fried
Fast food workers across the country are invoking past civil rights campaigns by using nonviolent civil disobedience in their escalating efforts for $15-an-hour pay and union membership. More than 1,300 workers gathered in a suburban Chicago convention center over the weekend to discuss the future of a campaign that has spread to dozens of cities in less than two years, The Associated Press reports. The fast food protests began two years ago in New York and have included daylong strikes. Most recently demonstrations outside the McDonald’s Corp. shareholders meeting resulted in the arrest of more than 130 protestors after they stepped onto company property. The current federal minimum wage is $7.25 an hour, translating to about $15,000 a year for someone working 40 hours a week, though many fast-food workers get far fewer hours.
“Lucy” Outmuscles “Hercules” at the Box Office
America loves “Lucy.” The Scarlett Johansson sci-fi action film topped the weekend box office with $44 million. The weekend’s second new release, “Hercules,” starring Dwayne Johnson, muscled its way to second place with $29 million. “ Sequels round out the top five. “Dawn of the Planet of the Apes” came in third with $16.4 million. In fourth place was “The Purge: Anarchy” with $9.8 million. Disney’s “Planes: Fire and Rescue” came in fifth with just over $9 million. The R-rated original comedy, “Sex Tape,” lost nearly 60 percent of its opening week box office with an under-performing $5.9 million.