Maui Blaze Cleanup 💔
Good morning! 🚚📦 Welcome to the October 5th edition of "The Workday Dash," your go-to source for the latest updates in supply chain and logistics. As we embark on this bustling day in the world of supply chains, we can't help but be reminded that today is not just any ordinary day; it's National Do Something Nice Day! In the spirit of spreading kindness and camaraderie throughout the supply chain community, we've got some heartwarming stories, innovative initiatives, and insightful strategies to share with you.
So, grab your coffee, settle into your logistics control center, and let's kickstart this edition with a dose of positivity amidst the hustle and bustle of the supply chain world. 🥰❤️
Maui's Wildfire Cleanup is a Monumental Task with Unprecedented Challenges
Federal officials have labeled the Maui wildfire cleanup as one of the most complex efforts, given the island's cultural sites and potential human remains. The initial cleanup phase involved 200 EPA workers removing toxic debris, and the U.S. Army Corps of Engineers will continue the mission for the next six to twelve months. The estimated cost is $400 million, but it may increase due to the removal of 400,000 to 700,000 tons of building debris from 1,600 parcels.
Cory Koger, an expert overseeing the cleanup, highlights unique challenges due to Maui's island location and the absence of certified landfills for hazardous waste. Cultural monitors, including Native Hawaiians, work to preserve cultural significance during the cleanup, which is especially sensitive given Lahaina's historical importance and the presence of Hawaiian kings and queens' graves in the Waiola Church graveyard.
Check out today’s featured article from AP News to learn more about what has been going on with the cleanup in Maui, and what the fires affected. Will this be a huge problem for the island in the future? When will the island start to rebuild?
Featured Article
Cleanup from Maui fires complicated by island’s logistical challenges, cultural significance | AP News
“ Cleanup of areas destroyed in the Maui wildfires could end up being one of the most complex to date, federal officials said, given the island’s significant cultural sites, its rich history including a royal residence and possibly remains of people who died in the disaster.”
Peak Season & Retail
Companies are Exploring a Mixed Approach to Holiday Season Hiring in 2023
Companies are gearing up for the holiday season by recruiting temporary staff for their warehouse and transportation operations. However, some are setting more conservative hiring goals in 2023 compared to the previous year. Amazon and DHL eCommerce are increasing their hiring efforts, with Amazon aiming to bring on board 250,000 people, up from last year's goal of 150,000. They are investing $1.3 billion in pay increases, pushing the average hourly wage for fulfillment and transportation roles to approximately $20.50. UPS is maintaining its target of hiring more than 100,000 seasonal employees, while FedEx has not disclosed its hiring goals but has openings for various positions
In contrast, the U.S. Postal Service is hiring 10,000 seasonal workers, significantly fewer than the 28,000 hires they sought in the previous year. This reduction is attributed to the agency retaining more workers for long-term positions, with over 150,000 employees moving into permanent roles since October 2020. Despite variations in hiring plans, competition for labor remains fierce, driven by wage increases at UPS and FedEx.
Healthcare & Strike
Healthcare Workers Stage Mass Strikes Across Multiple States, Demanding Fair Pay and Addressing Staff Shortages
Around 75,000 Kaiser Permanente workers went on strike across multiple states, including California, Colorado, and Washington, demanding fair wages and addressing staffing shortages. The strike, organized by the Coalition of Kaiser Permanente Unions, involved various healthcare roles and aimed to draw attention to understaffing issues affecting patient care. While Kaiser Permanente ensured hospital operations during the strike, it could result in appointment delays and non-urgent procedure rescheduling.
This strike occurred amid a year marked by labor stoppages across industries and multiple healthcare strikes prompted by worker burnout and heavy workloads, especially due to the COVID-19 pandemic. The unions called for a $25 hourly minimum wage and substantial pay increases, while Kaiser proposed minimum hourly wages between $21 and $23 for the next year, depending on location.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🇳🇴 Norway's Wealth Fund Acknowledges Companies for Ethical Ship-Breaking Practices. Norway's sovereign wealth fund, valued at $1.3 trillion, has made adjustments to its exclusion list and observation status for two companies involved in ship dismantling. Thoresen Thai Agencies had its exclusion lifted as it ceased sending ships for scrapping in Bangladesh under poor conditions, while Hyundai Glovis had its observation status lifted after implementing responsible disposal policies in Pakistan and Bangladesh. These changes align with global efforts to promote safe and eco-friendly ship recycling practices, supported by initiatives like the Hong Kong Convention and the European Ship Recycling Regulation.
🔋 Electric Cars Face Backlash in Both the U.S. and Europe. Former U.S. President Donald Trump and conservative politicians in Europe are intensifying their criticism of electric cars, making it a campaign issue on both sides of the Atlantic. Trump has been vocal about opposing the Biden administration's electric vehicle policies, claiming that the shift away from gasoline would lead to job loss and inflation. European politicians like Italian Transport Minister Matteo Salvini and Czech lawmaker Alexandr Vondra have also denounced policies promoting electric cars. However, not all conservatives are against electric vehicles, with some supporting them for job creation. The debate over electric cars is becoming increasingly political as clean-energy technologies gain prominence.
iLevel With You 🏡
More topics for the average American household to consider…
📝 The Push for Digital Documents Grows As Global Trade Modernizes. The $25 trillion global cargo trade relies heavily on outdated paper documents, making it vulnerable to fraud and inefficiencies. Fraud cases related to falsified documents cost billions annually. Advocates propose adopting secure online platforms for digital documents, which could enhance trade volume and cost savings. Legal recognition is a hurdle, but the UK's Electronic Trade Documents Act and expected French legislation aim to bridge the gap. Despite only 2% of trade currently being digital, major industry players are moving towards digitizing documents like bills of lading.
📈 Private Sector Job Growth slowed sharply in September, Marking the Slowest Pace Since 2021. In September, U.S. companies added only 89,000 jobs, well below the expected 153,000 and a significant drop from August's revised 180,000. This reflects a slowing labor market, potentially impacted by rising interest rates. Despite this, the Federal Reserve is pursuing aggressive tightening policies, and wage growth remains at 5.9% annually. Job gains were prominent in the leisure and hospitality sector but offset by losses in other industries, with small businesses showing the most significant hiring increase and large businesses reducing employees. The official Labor Department report for September, due soon, is highly anticipated for a more comprehensive job market assessment, though historically, ADP numbers haven't closely matched official government counts.
🚛 AB5 Impacts Small-Business Truckers, Warns OOIDA. The Owner-Operator Independent Drivers Association (OOIDA) has voiced concerns that California's Assembly Bill 5 (AB5), intended to address the misclassification of truck drivers, has actually burdened legitimate independent contractors. OOIDA is supporting the California Trucking Association in a lawsuit against the state and has filed a brief claiming that AB5 violates the U.S. Constitution. The law's ABC Test, which automatically classifies independent contractor truck drivers as employees, is seen as disruptive to interstate commerce, leading to the termination of properly classified independent contractor businesses and reducing the pool of drivers and carriers willing to operate in California under AB5 regulations. OOIDA seeks court intervention to address these issues.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
💊 US Takes Extensive Measures Against Chinese Fentanyl Supply Chain Producers. The Biden administration is taking aggressive action against the fentanyl trafficking threat by indicting eight Chinese companies and 12 executives involved in the production and distribution of precursor chemicals for synthetic opioids, including fentanyl. These actions are part of the administration's strategy to combat the ongoing overdose crisis in the U.S. Simultaneously, the Treasury Department has imposed sanctions on 28 individuals and companies, mainly in China, effectively cutting them off from the U.S. financial system. Fentanyl, a highly potent opioid, is a major contributor to the rising drug overdose deaths in the United States.
👮🏼♀️ Establishing Trust-Based Supply Chains as a Countermeasure Against Forced Labor Risk. Forced labor is a pressing global issue with wide-reaching impacts across various industries, including electronics, apparel, and agriculture. Governments like Germany, the European Union, and the U.S. are taking legislative measures to address it, with the Uyghur Forced Labor Prevention Act being a significant example. This legislation shifts the burden of proof to importers and has created challenges, particularly for smaller businesses. To navigate this complex landscape, companies should implement thorough human rights due diligence in their supply chains, use government lists for screening, and leverage third-party due diligence platforms to ensure transparency and compliance.
🔋Mastering the Art of Navigating Multiple Supply Chains for Electric Truck Charging. The transition to electric trucks is reshaping the commercial vehicle supply chain, with Class 4-6 electric trucks gaining traction. However, Class 6-8 electric trucks, with limited driving ranges, face challenges. Startups and legacy companies are establishing charging infrastructure for commercial vehicles, but the energy density of batteries remains a constraint. To address the supply chain complexities, companies are advised to screen suppliers against regulatory lists and ensure comprehensive human rights due diligence. Federal and state incentives support electrification, and companies are urged to consider charging infrastructure needs alongside truck purchases to navigate the evolving electric truck supply chain effectively.
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.