🚙 UAW's Strike Strategy: Prolong Play
Good morning! As we dive into another week in the dynamic world of supply chain management, let's not forget to take a moment to acknowledge that today, October 10th, is World Mental Health Day.
In the hustle and bustle of our industry, it's crucial to prioritize mental well-being. So, as we explore the latest updates and trends, let's also remind ourselves and our colleagues to nurture our mental health and support one another on this journey. Together, we can maintain a healthy balance and thrive in the world of supply chains. Here's to a day of insight, growth, and self-care. 🧠❤️
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UAW's Tactical Approach to Prolong Big Three Automakers Strike
The United Auto Workers (UAW) strike against the Big Three automakers, GM, Ford, and Stellantis, is entering its third week, and the union is employing a strategic, gradual escalation approach to prolong the strike. They aim to keep the companies guessing and protect their strike fund, which initially totaled $825 million.
So far, the UAW has avoided targeting the most profitable sectors of the companies' production, like full-size trucks, but if they do, it could significantly impact the automakers' outlook as the strike continues. While the strike has caused pain for the companies, it hasn't yet delivered a knockout punch, and the UAW plans to continue tightening the screws to pressure the automakers to reach agreements.
Check out today’s featured article from NPR to read about the possibilities of the UAW strike lasting much longer than initially anticipated. What will this mean for the Big Three automakers, the workers, and for the American public?
Transportation & Labor Issues
Transportation Sector Unemployment Sees Slight Increase in September 2023
In September 2023, the unemployment rate in the U.S. transportation sector was 4.9%, which marked a 0.6 percentage point increase from September 2022 and surpassed the pre-pandemic level of 3.3% in September 2019.
The highest unemployment rate during the COVID-19 pandemic in the transportation sector was 15.7% in May and July 2020. Despite some fluctuations, the sector's employment remained relatively stable, with slight increases in air and truck transportation employment and decreases in transit and ground passenger transportation and warehousing and storage employment.
Labor Issues & Economics
Labor Movement's Fight for a Fair Economy in 2023 Indicates a Rekindling of Working-Class Prosperity
In the past, working-class jobs in Michigan and across the United States provided stability and security, with families owning homes, and having access to ample food, and healthcare coverage without fear of bankruptcy. However, this prosperity faded in 2023, as the American labor movement's influence waned. Despite this, workers are rallying, exemplified by the recent victory of 340,000 Teamsters at UPS who secured better wages and working conditions.
The labor movement is gaining momentum, with unions like the UAW fighting for fair treatment and dignity for workers. Still, outdated labor laws hinder progress, and the message is clear: to rebuild the middle class in America, laws must be updated to ensure fair contracts for unionized workers. This movement aims to create an economy where work pays well, benefitting both skilled workers and those without college degrees, with the goal of recapturing the shared prosperity of previous generations.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇮🇱 Economic Risks Escalate as Middle East Conflict Adds to Global Uncertainty. The conflict in the Middle East, including the recent attacks by Iran-backed Hamas terrorists and Israel's response, has introduced new economic risks globally. The potential for a broader Middle East conflict, coupled with ongoing concerns related to Russia's invasion of Ukraine, could disrupt supply chains, reduce economic confidence, and impact oil prices, leading to potential inflationary pressures. The situation poses challenges for central banks, including the Federal Reserve, as they navigate economic decisions, such as whether to raise interest rates while monitoring the evolving global geopolitical landscape and its economic implications.
🐳 Shipping Companies Honored for Environmental Efforts in the 'Protecting Blue Whales & Blue Skies' Program. In the 2022 "Protecting Blue Whales & Blue Skies" program, shipping companies received awards and financial incentives for reducing speeds in environmentally sensitive areas. Twenty-three companies participated, transiting at 10 knots or less in regions like the San Francisco Bay Area and Southern California. These voluntary efforts helped reduce air pollutant emissions, decrease the risk of ship strikes to whales, and lower underwater noise pollution. The program has seen increasing participation and plans to expand further in 2023, including inviting tanker operators to join.
🇬🇧 UK's Pro-Motorist Policies Fuel 'Greenlash' in Europe as Governments Face Backlash. The UK government's recent pro-motorist policies have contributed to a "greenlash" against ambitious environmental initiatives in Europe. The Transport Minister, Mark Harper, introduced measures to protect motorists from what he called "over-zealous traffic enforcement," including limiting councils' ability to impose speed limits and simplifying parking payments. This shift aligns with the ruling Conservative Party's efforts to gain voter support, especially in rural areas, where some feel unfairly affected by green transport policies, ahead of the upcoming General Election. Other European countries have also witnessed similar pushbacks against green policies due to concerns about cost and overreach.
iLevel With You 🏡
More topics for the average American household to consider…
🇺🇸 The US is Still Navigating the Economic Challenges of Inflation Amid Job Growth. Despite the U.S. economy adding over 2.3 million jobs this year and maintaining an unemployment rate below 4%, many people still perceive economic conditions as challenging. This perception is largely attributed to persistently high inflation, which, while slowing down in terms of annual pace, remains a significant burden on households. People feel the impact of rising prices on everyday expenses like rent, food, and gas, as well as the "shrinkflation" phenomenon, where products decrease in size but maintain or increase in price. Also, soaring home prices and higher interest rates make homeownership increasingly difficult, particularly for younger buyers. Despite positive job creation statistics, concerns about the real quality of jobs and economic prospects persist, especially among younger generations, largely due to inflation's impact on their financial well-being.
🍭 Virality Can Dive Small Businesses to Success. Small businesses can experience a sudden surge in demand when they go viral on social media platforms like TikTok. For example, the Lexington Candy Shop in New York City saw a significant increase in customers after a TikToker's video went viral, leading to long lines and increased sales. Other businesses, like Fatima's Grill in California and Aunt Bill's in Texas, also experienced overwhelming demand due to viral videos, prompting them to adapt their operations and expand. While these sudden bursts of fame can be challenging to handle, savvy business owners can turn them into lasting success with careful planning and adjustments to meet the increased demand.
🏙️ New York City Set to Introduce Zone-Based Tolling Program in 2024 to Fund Transit Upgrades. New York City is preparing to launch the first zone-based tolling program in the U.S. in spring 2024. The program will increase tolls for drivers entering parts of Manhattan south of 60th Street, with the final toll price yet to be determined but estimated to range from $9 to $23 for personal cars. Commercial and ride-share vehicles will be charged per trip. The tolls are expected to generate up to $15 billion for investment in the aging Metropolitan Transportation Authority (MTA) system, with funds going towards various projects, including the expansion of Metro-North stations and investments in clean bus technology, such as hydrogen fuel cell buses.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🪧 UAW Rally in Chicago Suggests a Prolonged Strike in Detroit Auto Industry. UAW President Shawn Fain and other labor leaders held a rally in Chicago to garner continued support for the ongoing strike against Detroit automakers, emphasizing the significance of the strike for organized labor. However, no new details regarding negotiations or updates were provided during the rally. The strike began in mid-September and expanded to include various facilities across GM, Ford, and Stellantis, with the UAW seeking pay raises and other benefits, while negotiations continue.
👟 Nike's Inventory Management Reports Success Amidst Industry Challenges. Nike's inventory units have decreased significantly, with a 10% year-over-year drop in inventory value, according to company executives. The sportswear giant's CFO, Matt Friend, expressed confidence in their current inventory levels compared to retail sales and praised the inventory management of retail partners like Dick's Sporting Goods. Nike has managed to align its inventory with demand after facing challenges last year when inventories surged by 44%, reflecting the impact of consumers and retailers reducing purchases. In contrast, Under Armour has seen inventory growth and a decline in gross margin.
🍟 Reducing Emissions for Global Food Companies is Critical. Some global food companies, like McDonald's and PepsiCo, are struggling to reduce emissions across their value chains, despite ambitious sustainability goals. McDonald's, for instance, aimed to reach net-zero emissions by 2050 but saw its emissions increase by 12 percent in 2021 compared to its 2015 baseline. Much of these emissions are from Scope 3 sources, including suppliers like farmers. To address this, some companies are using carbon markets, such as Truterra and Indigo AG, to incentivize farmers to adopt more sustainable practices like "no-till" farming. However, there are concerns about the accuracy and durability of carbon offsets in agricultural carbon markets and the need for rigorous soil sampling to verify carbon content accurately.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 22, 2024, from iLevel Logistics Inc.