🪧📦 Package Deal
Good morning! Today, we honor the historical significance of Juneteenth and its impact on the supply chain industry. Let's commemorate Juneteenth together and uncover the threads that weave a more inclusive and equitable future for the global supply chain community.
———
UPS workers, represented by the International Brotherhood of Teamsters, have voted overwhelmingly in favor of authorizing a strike as national contract negotiations continue. The union announced that 97% of members voted in favor of the strike authorization, giving the UPS Teamsters National Negotiating Committee the ability to call a strike if an agreement is not reached by July 31.
The vote demonstrates the unity and determination of Teamsters members to secure the best contract in UPS history. Teamsters General President Sean O'Brien emphasized that UPS must fulfill the contract that their hardworking members deserve, warning that a strike is a possibility if the company fails to do so.
Check out today’s featured article from Supply Chain Dive to read about what UPS workers are planning to do with their strike authorization. Will UPS follow through on their threats of a strike? What will this do to the delivery system and their 1–2-day deliveries? How much money will the company lose if there is a strike?
Featured Article:
UPS workers authorize strike in thick of Teamsters contract negotiations | CNBC
“Although expected, the vote allowing union leaders to call a strike ramps up pressure on the company to reach a new agreement.”
Charity & Network Association 🚛
'Spectrum Works & MTS Logistics' 13th Charity Bike Tour Raises $98K for Autism Employment & Acceptance'
Spectrum Works and MTS Logistics joined forces for the 13th Annual Charity Bike Tour in New York City, raising over $98,000 to support autism acceptance, employment, and equity. Spectrum Works is a nonprofit organization that specializes in job training and employment placement services for individuals with autism. The event aimed to expand the reach of Spectrum Works and its programs, empowering autistic individuals to find meaningful and long-term employment. The funds raised will be used to launch a new internship program that provides job coaching and support, helping interns secure employment with partner companies.
The bike tour featured a scenic route from lower Manhattan to Brighton Beach, followed by a beachfront brunch and a raffle with exciting prizes. Attendees had the opportunity to learn more about Spectrum Works' mission directly from Hennessey Kingsley, a participating student who shared her inspiring experience. The event was successful in raising awareness and support for autism employment opportunities, with gratitude expressed to MTS Logistics and Sedat Saka for their ongoing commitment. Spectrum Works plans to utilize the funds to support internships, cover wages and job coach salaries, and educate companies about the benefits of hiring autistic individuals.
Labor Issues & Trucking 🤝
ABF's latest labor agreement entails a gradual $6.50 per hour wage hike implemented by 2027
ABF Freight System has disclosed the details of its recently reached tentative agreement with its unionized workforce. The proposed five-year labor deal, set to take effect after the expiration of the current agreement on June 30, offers various benefits to employees, including wage increases, improved health and welfare contributions, additional sick days, an extra paid holiday, and a revised profit-sharing program. The agreement has received unanimous approval from union leaders and will now be voted on by ABF's Teamster employees over the next two weeks. ABF's objective in the negotiation process was to establish a fair agreement that aligns with market-based wages and benefits while facilitating the company's growth and necessary investments.
Key provisions of the agreement include a total hourly wage increase of $6.50 over the five-year term, along with a $4.46 per hour increase in benefits contributions during the same period. Hourly wages for regular employees will see an initial increase of $3.50 (plus 8.75 cents per mile) starting from July 1, followed by a 75-cent increase (plus 1.875 cents per mile) in each subsequent year. The profit-sharing program has been modified to include different tiers based on the company's operating ratio, ranging from a 1% payout for an operating ratio of 93% or better to a top-tier payout of 4% for an 87% or better operating ratio. Additionally, the agreement introduces new provisions related to paid holidays, sick days, and the creation of a non-CDL box truck position within the union.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
✈️ FEMA has enlisted the services of Ukrainian cargo airlines to provide relief efforts in Guam. The Federal Emergency Management Agency (FEMA) has engaged the services of two Ukrainian cargo airlines to support emergency airlift operations for disaster recovery in Guam, despite objections from U.S. carriers. Ukraine Air Alliance delivered computer equipment to Guam using a 57-year-old An-12 turboprop, while FEMA chartered multiple flights with Antonov Airlines' An-124 freighters. These efforts are in response to the damage caused by Typhoon Mawar to critical infrastructure in Guam and the Northern Mariana Islands.
🚫 Just weeks after being banned from selling chips to China, Micron pledges a $600 million investment in the country. Micron Technology Inc. has announced a significant investment of $602 million in its chip-packaging plant in China, despite recent restrictions imposed by the Chinese government on the use of its semiconductors. The US memory chipmaker plans to expand its existing facility in Xi'an, adding assembly lines and acquiring new equipment over the next few years. This investment is expected to create 500 jobs, increasing Micron's workforce in China to over 4,500 employees.
🇷🇺 Despite attempts to reduce dependence, Russia remains the primary supplier of uranium to the United States. Despite efforts to reduce reliance on Russian uranium, Russia maintained its position as the top supplier of nuclear reactor fuel to the United States last year. Approximately 25% of the enriched uranium used to power over 90 commercial reactors in the US came from Russia, slightly down from 28% in 2021, as reported by the Energy Information Administration. These statistics highlight the ongoing challenges faced by the US in attempting to establish a domestic capability for producing enriched reactor fuel on a large scale.
iLevel With You 🏡
More topics for the average American household to consider…
🛍️ Retailers are gearing up for a holiday season marked by heavy discounts and reduced sales. According to the CNBC Supply Chain Survey, retailers are anticipating a challenging holiday spending season, despite a significant drop in inflation. Most respondents expressed concerns that consumers will cut back on holiday spending, leading retailers to expect increased demand for discounts and promotional offers. Early peak season order activity reveals a focus on mid-priced items, with high-end products representing a small portion. Sweaters, boots, dresses, and evening purses dominate warehouse inventories. More than half of the orders will include promotional products like free gifts with purchases.
🎗️ Amazon has unveiled its new complex, known as "HQ2," in Virginia. Amazon has introduced the first phase of its new headquarters complex, "HQ2," in Arlington, Virginia. The complex consists of two modern office towers offering various amenities to entice employees back to the office after remote work during the pandemic. The opening of the Met Park office complex is a significant milestone for Amazon's HQ2 project, which was announced in 2018 as a second headquarters to complement its existing base in Seattle. While initial plans included bringing 25,000 jobs to both northern Virginia and New York City, opposition to incentives in New York led to the Arlington complex becoming the sole site for HQ2.
🛣️ Rough road ahead for the CEO of C.H. Robinson. Dave Bozeman, the new CEO of C.H. Robinson, is expected to leverage his extensive knowledge in global supply chain and logistics management to lead the company. Bozeman, a former executive at Ford, has experience in managing businesses through different economic cycles, making him a suitable candidate for the role. Supply chain experts believe that Bozeman's top priorities should include recouping business and managing expenses, as well as focusing on process improvement and maintaining key customer relationships.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💉 Senators have put forth an initial measure to tackle drug shortages. A congressional report reveals that the United States is grappling with critical medication shortages, prompting bipartisan senators to investigate the potential national security implications. Senators Gary Peters and Joni Ernst are introducing a bill that mandates the assessment of vulnerabilities in supply chains by federal agencies such as the Department of Homeland Security, Department of Defense, and Department of Health and Human Services. The report highlights overreliance on foreign countries like China and India for pharmaceutical ingredients, which worsened during the COVID-19 pandemic due to export restrictions.
⚖️ FMCSA has released guidance regarding the terms and conditions of brokerage and dispatch services. The Federal Motor Carrier Safety Administration (FMCSA) has released its final regulatory guidance on the definitions of "broker" and "bona fide agents," including addressing the role of entities known as "dispatch services" in motor vehicle transportation. While the definitions of broker and bona fide agents largely remain unchanged, the guidance clarifies certain regulatory areas and considers the impact of technology on freight brokerage. According to the FMCSA, the existing definition of "broker" in federal regulations is sufficient, stating that handling money exchanges between shippers and motor carriers is one factor that suggests the need for broker authority but is not an essential requirement.
🏆 According to Trevor Milton, Nikola requires fresh leadership. Trevor Milton, the founder of Nikola Corp., has called for a change in leadership at the electric truck maker and urged shareholders to vote against proposals backed by the company. Milton, who is the largest individual shareholder of Nikola, resigned from the company in September 2020 and was later convicted of securities fraud. He awaits sentencing in September. Nikola's annual shareholders’ meeting, initially scheduled for June 7, was adjourned until July 6 to gather more votes for Proposal 2, which aims to authorize the issuance of new shares.