Unions Unite 😅
Good morning! On this meaningful day of National Love is Kind Day, we come together not only to celebrate the beauty of love and kindness but also to honor and remember those who have endured the painful hardships of abuse. As we extend our hearts and minds to the victims, we recognize the importance of nurturing a compassionate and caring community within our supply chain industry.
May this day serve as a powerful reminder of the transformative power of love and kindness in building a stronger, more compassionate supply chain community for all. ❤️💗💜
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UPS and the International Brotherhood of Teamsters have successfully reached a tentative collective bargaining agreement, averting a potential strike. After restarting negotiations and facing a July 31 deadline, the two parties managed to strike a five-year deal that includes higher wages for all workers, the creation of additional full-time jobs, and numerous workplace protections and improvements.
The agreement was celebrated by both sides, with Teamsters General President Sean O’Brien expressing pride in securing the "best contract in the history of UPS." The deal addresses key worker concerns, such as pay raises and safety protections, and ensures UPS Teamsters remain the highest-paid delivery drivers in the nation. The agreement is now subject to voting and ratification by Teamsters members.
Check out today’s featured article from ABC News to learn more about what went into the agreement between UPS and Teamsters. Will this agreement actually last without fear of a future strike? How long until there is a new problem within the postal service?
Featured Article:
UPS and Teamsters union reach agreement, avert strike | ABC News
“UPS and the International Brotherhood of Teamsters, a union representing about 330,000 UPS employees in the U.S., have reached a tentative collective bargaining agreement.”
Money Matters & Inflation
Federal Reserve Set to Raise Interest Rates to 22-Year High Following June Pause
The Federal Reserve is expected to raise interest rates by a quarter-percentage point, resuming its efforts to combat inflation after a brief pause in June. The rate hike would bring the federal funds rate to its highest level since 2001 and marks the 11th increase in nearly 18 months. The focus is also on Fed Chairman Jerome Powell's press conference, where investors look for clues about future rate hikes.
While many believe this will be the final increase in the tightening cycle, the resilient economy and tight labor market could pose challenges to controlling inflation. Core prices remain above the Fed's 2% target rate, indicating underlying price pressures. Some Fed officials support additional rate hikes depending on economic progress and inflation trends.
Safety & Behind The Wheel
American Teens are Hitting the Road Less
American teens are increasingly delaying getting their driver's licenses, with the share of teenagers aged 16-19 with licenses declining from 64% in 1995 to around 40% in 2021. Several factors contribute to this trend, including the rising costs of owning a car, inflation impacting insurance and gas prices, the availability of ride-hailing and delivery apps reducing the necessity of owning a car, urban centers becoming less car-friendly, and teens preferring alternative modes of transportation to reduce their environmental impact.
Graduated licensing laws, which require novice drivers to gain skills in low-risk settings before obtaining full driving privileges, have also impacted the decline. The decreasing trend in driving extends to Generation Z and millennials, with fewer young people obtaining licenses. These changes reflect a divide between those with access to resources and those with limited means, as obtaining a license can be expensive, especially for teens from lower-income families.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🔥 One Dead in the North Sea as Massive Fire Engulfs Car Carrier. One person has died, and several others have been injured in a major fire that broke out on a car carrier in the North Sea off the Netherlands. The incident occurred on the Panama-flagged Fremantle Highway, which was carrying 2,857 vehicles, including 25 electric vehicles, from Bremerhaven, Germany, to Port Said, Egypt. The cause of the fire is currently unknown. All 23 crew members on board were evacuated by helicopter and lifeboat, but the fire continued to spread throughout the vessel, with flames visible on the top deck. The Netherlands Coastguard is leading the response with sea and air assets, including the salvage vessel Guardian, spraying water to control the fire.
🇮🇳 India Poised to Emerge as a Key Beneficiary in Supply Chain Shift from China. India and the U.S. are collaborating on supply chains, with both nations recognizing the benefits of diversifying and strengthening them. Recent agreements on defense and critical technologies, along with e-commerce investments by Amazon, demonstrate India's growing importance in the global shift of supply chains away from China. Factors contributing to India's attractiveness include its large and fast-growing economy, trainable workforce, expanding middle class, and willingness to trade and invest. Geopolitically, India is a target of the Indo-Pacific Economic Framework, which aims to reduce reliance on China and encourage global sourcing from trusted economies.
iLevel With You 🏡
More topics for the average American household to consider…
🍫 Chocolate Maker Surpasses Cost Savings Targets with Inventory Reduction Success. Rocky Mountain Chocolate Factory is ahead of its cost-savings schedule, successfully reducing expenses through improved inventory management and demand planning. The company eliminated two third-party warehouses and reduced inventory by 46% YoY for the quarter ending May 31. By using cross-docking providers for store delivery logistics, it maximized volume on its own trucks and achieved over $700,000 in annual cost savings, exceeding 60% of its $1.2 million target. The transformation aims to simplify and focus operations, positioning the company to gain market share in the competitive U.S. chocolate confectionery market.
🔋 GM Points to Supplier for Slow EV Production, Confirms Future for Chevy Bolt EV. General Motors CEO Mary Barra attributed the slow ramp-up of the company's new electric vehicles to a supplier of automation equipment. Despite quarterly results beating year-ago performance, Wall Street criticized GM's EV rollout, leading to a 4% drop in the company's shares. Barra expressed disappointment with the unnamed supplier's delivery issues, affecting module assembly capacity. GM produced 50,000 EVs in the first half of the year, mainly consisting of outgoing Chevrolet Bolt models, rather than the newer ones using the "Ultium" batteries and technologies. Barra assured analysts that significant production improvements are expected by the end of the year, and GM plans to produce 100,000 vehicles in North America during the second half of 2023.
🧑🏽💼 The U.S. Chip Industry to Face Shortage of 67,000 Workers by 2030, According to Study. A study by the Semiconductor Industry Association (SIA) and Oxford Economics predicts that the U.S. semiconductor industry will face a shortage of around 67,000 workers by 2030. The industry's workforce is expected to grow from 345,000 in 2023 to 460,000 by the end of the decade, but the rate of graduates from schools is not sufficient to meet the increased demand. The study comes as the U.S. is working to strengthen its domestic chip sector through initiatives like the CHIPS Act, which provides funding for manufacturing sites and research and development. The projected shortage includes computer scientists, engineers, and technicians, with roughly half of the future chip industry jobs being in engineering roles.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🚗 Porsche's EV Sales Target at Risk Due to Supply Chain Challenges. Porsche AG is facing supply chain challenges that are impacting battery-electric vehicle (BEV) production, particularly due to difficulties in securing special parts like high-voltage heaters. This may affect its ability to achieve its target of BEVs accounting for around 12-14% of total sales. Despite these challenges, the company remains optimistic about luxury demand and is keeping its BEV sales target intact. Porsche reported a 10.7% rise in operating profit for the first half of the year, but the recovery in the Chinese market is not progressing as expected, and there are concerns about a slowdown in the German market. However, the luxury market is seen as more resilient compared to the mass market.
🚛 Truck Tonnage Index Shows a 2.1% Increase in June. The American Trucking Associations' For-Hire Truck Tonnage Index rose 2.1% in June, following a 1.2% increase in May. However, the index is still in recession territory compared to the previous year, showing a 0.8% decrease from June 2022. The decline in tonnage is attributed to various factors, including stagnant consumer spending, lower home construction, falling factory output, and shippers consolidating freight into fewer shipments. Despite the year-over-year declines, the magnitude of the decreases is improving, indicating a potential bottoming out in the freight market. The trucking industry is a crucial barometer of the U.S. economy, representing a significant portion of domestic freight transportation and revenue.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 27, 2024, from iLevel Logistics Inc.