Congress appeals to DOL for swift action against Hyundai’s supply chain due to child labor scandal
Good morning! Happy Valentine's Day from the world of Supply Chain! ❤️
Today we celebrate love in all its forms, including the love we have for our supply chain partners. Just like in any strong relationship, open communication, trust, and collaboration are key to ensuring a smooth and successful supply chain. In this edition, we'll be taking a closer look at the importance of strong partnerships and the impact they have on our supply chain success.
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In a shocking and disturbing turn of events, it was uncovered that child migrants as young as twelve years old were working in Alabama-based factories that manufacture parts for Hyundai and Kia vehicles. These minors were working illegally, and federal and state authorities were alerted by the investigative journalists. Now, Congress is getting involved.
Check out today’s featured article from Reuters to read the exclusive update about the child labor scandal and the resulting condemnation from several Democratic lawmakers directed at Hyundai's supply chain. After the Reuters investigation uncovered the broken child labor laws, how deep does this problem run? How will the Department of Labor respond? ☕️
Featured Article:
Exclusive: U.S. lawmakers press Labor Department to probe child labor in Hyundai supply chain | Reuters
“Thirty-three members of Congress are urging the U.S. Labor Secretary to seek strong and swift penalties against those responsible for child labor in automotive plants after a Reuters investigation found kids as young as 12 working in Alabama factories that make parts for Hyundai Motor Co and Kia Corp.”
Ports & Labor Issues 🚢
Cargo has eased, but labor issues remain hot at west coast ports
For 10 months, labor unions at the West Coast ports have been in talks with their employers over a new contract, and there is still no agreement in sight. The volume slowdown after the pandemic boom is also due in part to businesses shifting their shipments to the Gulf or East Coast and the West Coast’s congestion easement seems to be lowering the urgency for a new labor deal. With shipping costs plunging after all-time highs, employee leverage may also be waning.
This lack of a labor deal with the dockworkers creates uncertainty and instability in the supply chain. The West Coast ports are a critical component of the global supply chain, handling billions of dollars in trade each year. Without a labor contract, dockworkers may choose to strike, slowing or halting the flow of goods through the ports. This can lead to backlogs, delayed shipments, and increased costs for businesses that rely on the West Coast ports for their supply chain. The uncertainty and instability created by the lack of a labor contract can also discourage investment and discourage businesses from using the West Coast ports, continuing to redirect trade to other ports.
Moreover, the absence of a labor contract can lead to decreased morale among dockworkers, who may feel that their rights and benefits are not being adequately protected. This can result in lower productivity and quality, further exacerbating the supply chain disruptions.
Warehousing & Artificial Intelligence 🤖
Warehouse workers trust robots as partners, in a new survey
According to “Competing for The Warehouse Workforce of the Future”, a study commissioned by Lucas Systems of 500 on-floor warehouse workers, 3 out of 4 workers say that they trust robots to assist them to perform better at work. Robots can perform repetitive tasks faster and more accurately than humans, freeing up workers' time to focus on more value-adding activities such as problem-solving, customer service, and innovation. Robots can also perform dangerous tasks such as heavy lifting and exposure to hazardous materials, reducing the risk of injury to human workers.
Many warehouse tasks can be physically demanding, and robots can help to reduce the physical strain on workers, reducing the risk of injury and improving overall health and well-being. By taking on repetitive and physically demanding tasks, robots can help to enhance job satisfaction by allowing workers to focus on more engaging and fulfilling tasks. Robots can help to eliminate human error, improving accuracy and reducing the risk of costly mistakes.
Let’s Get Global 🌎
🇺🇸 White House advisor warns that the U.S. has a long road ahead to catch up with China. China currently dominates the rare earth and mineral production market, controlling the lion’s share of 60% globally. Special Presidential Coordinator Amos Hochstein is warning that the legislation in place meant to bolster domestic production may be too little too late, as a diversified supply chain will be very difficult to achieve. With so much concentration on China’s rare earth production, The United States has quite the uphill battle. The pandemic and the war between Russia and Ukraine have only accelerated the need for a diversified supply chain and the tensions between the United States and China are extremely high.
💰 Best-value country sourcing should consider more than just the cost. While cost is an important factor, there are many other factors that can impact the overall value of a sourcing decision, such as lead time, quality, risk, and sustainability. For example, a country with low labor costs may seem like the best value option, but if the lead time is longer or the quality is lower, it may not provide the best overall value. Similarly, a country with high quality and short lead times may come with higher costs, but it may be worth the investment to reduce the risk of supply chain disruptions. Sustainability is also becoming an increasingly important factor in sourcing decisions, as companies look to reduce their environmental impact and meet the expectations of socially responsible consumers.
😅 The World Economic Forum is issuing warnings of interconnected crises. Known as “polycrises”, these refer to multiple, interconnected crises that occur simultaneously and have the potential to amplify each other, creating a complex and potentially catastrophic situation. For example, economic inequality can lead to political instability, which can further exacerbate climate change, leading to natural disasters that disrupt global supply chains and exacerbate economic inequality. By addressing polycrises in a proactive and coordinated manner, global leaders can work together to create a more sustainable, inclusive, and resilient future for all.
iLevel With You 🏡
More topics for the average American household to consider…
🔋 Tesla likely to expand proprietary charging equipment in the U.S. after DOT pressure. The electric vehicle company dominates the market, and CEO Elon Musk has long flirted with the idea of opening up its charging network to competitors but has yet to do so domestically. As part of the Biden Administration’s plan to transfer 50% of all new vehicles in the U.S. to all-electric by 2030, the Department of Transportation is expected to finalize a requirement that will put massive pressure on Tesla to expand. Tesla's Supercharger network in the US is a network of fast charging stations that are specifically designed for Tesla electric vehicles, using high-speed charging technology that can add up to 170 miles of range in just 30 minutes. The Supercharger network covers most of the US, with locations situated along major highways and in urban areas, making it convenient for Tesla owners to travel long distances without worrying about running out of battery.
⚡️ Freight trucking industry is beginning the journey to electric vehicle adaption. It's likely that electric trucks will be introduced in urban areas and cities first, where there is a higher demand for sustainable and efficient transportation options. This is because the shorter range requirements and heavier payloads of delivery trucks make them well-suited to urban use cases. Additionally, the presence of charging infrastructure in cities can help support the deployment of electric trucks. Some cities and states, such as California and New York, have already taken steps to encourage the adoption of electric trucks through incentives and funding for charging infrastructure. So, it's possible that these areas could be among the first to see widespread deployment of electric trucks.
📺 Superbowl ads passed on edgy humor this year and instead focused on making viewers feel good. Super Bowl advertisements are some of the most highly watched and anticipated commercials of the year, and companies aim to make a lasting impression on the millions of viewers tuning in. As a result, the tone and content of these advertisements can be carefully crafted to appeal to the broadest possible audience. Advertisers want to reach as many people as possible and avoid alienating or offending any particular group of viewers. "Feel-good" commercials, with their positive and uplifting themes, are less likely to generate negative reactions than edgier ads. After a challenging year, it seems that the last thing companies wanted to do was stir up controversy.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚛 Carrier Market Disruption may be inevitable this year. Carrier market disruption can be a significant challenge in the supply chain, but it can be avoided or mitigated through effective planning and risk management. Companies should spread their shipments across multiple carriers to reduce the impact of disruptions from any single carrier. Additionally, those selections should be carefully picked carriers based on their track record, reliability, and ability to handle disruptions. By following these strategies, supply chain professionals can reduce the risk of carrier market disruptions and ensure a smooth, efficient, and reliable supply chain.
🤝 Supply chain managers deserve a place in the business C-suite. The supply chain plays a critical role in the success and competitiveness of a company and impacts everything from product quality and availability to costs and customer satisfaction. It has become increasingly complex and global in nature and by elevating the role of supply chain management to the C-suite, businesses can ensure that the supply chain is given the attention and resources it deserves. This will help to align the supply chain strategy with the overall business strategy, ensuring that the supply chain is a competitive advantage and not a weakness.
🚢 Port of LB faces dip in shipments after shifting consumers behaviors. Consumer behavior and preferences are constantly evolving, and shifts in demand for certain goods and products can affect the volume of shipments through the port. The rapid growth of e-commerce has disrupted traditional retail channels, and consumers are increasingly purchasing goods online, bypassing the need for physical stores and reducing the volume of shipments through the port. Other ports and regions may be offering more favorable conditions for trade, such as lower costs, more efficient infrastructure, or better access to key markets, which can lead to a shift in shipment volumes away from the Port of LB.
♻️ Green energy may be the future of the shipping industry, but how does it get shipped to them first? The shipment of green fuels, such as biofuels and hydrogen, presents several challenges for the shipping industry, including a lack of adequate infrastructure for the production, storage, and distribution of green fuels that can make it difficult to ensure a consistent and reliable supply for ships. Green fuels are often more expensive than traditional fossil fuels, which can increase operating costs for shipping companies and make it more challenging for them to compete with other modes of transportation.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 28, 2024, from iLevel Logistics Inc.