California Sues 🛢
Good morning! Welcome to the latest edition of "The Work Day Dash," your go-to source for all things supply chain and logistics. As we are halfway through National Hispanic Heritage Month, a time dedicated to celebrating the rich cultural contributions of Hispanic and Latino communities, we are reminded of the vital role diversity plays in the world of supply chain management.
Join us on this journey of discovery as we honor the past, embrace the present, and envision the future of supply chain and logistics during National Hispanic Heritage Month. 🇲🇽
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California's Legal Battle Against Big Oil: Allegations of Deception and Climate-Related Harms
California has filed a civil lawsuit against major oil companies, including Exxon Mobil Corp., Shell Plc, BP Plc, ConocoPhillips, Chevron Corp., and the American Petroleum Institute, alleging that they deceived the public about their role in creating or contributing to climate-related catastrophes in the state. The lawsuit, filed in San Francisco, seeks the establishment of an abatement fund for climate mitigation efforts, an injunction to protect California's natural resources, damages, and penalties.
This legal action comes in response to the escalating financial burden caused by climate disasters in California, prompting some major US insurance companies to limit coverage in the state. California Governor Gavin Newsom is expected to discuss the lawsuit during New York City's Climate Week.
Check out today’s featured article from GCAPTAIN to learn more about why California sued a large oil giant. Will more lawsuits come out of this? Are there more reasons as to why this is happening?
Featured Article
California Sues Oil Giants Claiming Deception, Climate Harms | G Captain
“California sued major oil companies including Exxon Mobil Corp. and Shell Plc, saying they deceived the public for decades while creating or contributing to local climate catastrophes.”
Strike & Contracts
UAW's Wage Demands: A Closer Look at CEO Pay Raises
The United Auto Workers (UAW) union has been using CEO pay increases as a central argument in their negotiations with Detroit's three major automakers. Over the past four years, CEO pay at these companies reportedly rose by 40%, while autoworkers received a 6% increase in pay since their last contract in 2019. UAW President Shawn Fain initially demanded a 40% wage increase over four years, along with the restoration of pensions and cost-of-living increases, which have since been lowered to 36%. However, negotiations have hit an impasse, leading to a strike.
This focus on the wealth gap between workers and top executives reflects a growing trend among labor unions, where they cite such disparities to advocate for better pay and working conditions. Similar actions have been taken in other industries, including the entertainment sector, where shareholders rejected executive pay packages at Netflix, and the Writers Guild of America targeted pay proposals at companies like Comcast and NBCUniversal.
Forced Labor & Shipments
US Detains $1.7 Billion in Shipments Under Forced Labor Law
One year after the enforcement of the Uyghur Forced Labor Prevention Act (UFLPA), a Kharon report reveals that approximately $1.7 billion worth of shipments destined for the United States have been detained. The UFLPA passed in 2021, aims to address concerns regarding forced labor in the Xinjiang Uyghur Autonomous Region and prohibits the shipment of products from that area to the United States. Enforcement of the law began in June 2022.
As of July 2023, U.S. Customs and Border Protection has detained 5,059 shipments from over five countries, with a significant portion originating from Malaysia, Vietnam, and China. Apparel, footwear, textiles, and industrial, manufacturing, and electronic goods have been the primary targets of these detentions. Between June and December 2022, 2,470 shipments were detained, with 1,127 denied and 1,082 released. In 2023, 606 shipments were denied, and 988 were released. Electronics constitute the majority of detentions in 2023, with 828 shipments detained in the first seven months.
Let’s Get Global 🌎
Checking out the scoop outside of the United States…
🌊 Monjasa Spearheads the Development of Latin America's Marine Biofuels Supply Chain. Monjasa, one of the world's top 10 marine fuel suppliers, is working to establish a sustainable and scalable biofuel option for the maritime industry in Latin America. This initiative aligns with the industry's need for cleaner fuels as part of efforts to meet the International Maritime Organization's (IMO) target of full decarbonization by 2050. Monjasa is specifically focusing on Latin America, with operations centered around the Colombian port of Cartagena.
🇨🇳 China's Modernization Drive and Its Impact on Global Supply Chains. China's ongoing efforts to modernize its industrial system are expected to have a positive impact on global supply chains. Economists and corporate executives believe that China's commitment to building a modern industrial system will enhance the resilience of global supply chains, making them better prepared to deal with potential disruptions. They highlight several factors that make China attractive to multinational companies, including a comprehensive supply chain support system, strong logistics infrastructure, a large market, and favorable government policies that promote innovation.
iLevel With You 🏡
More topics for the average American household to consider…
☀️ California Governor Gavin Newsom Commits to Signing Climate-Focused Transparency Laws for Major Corporations. California Governor Gavin Newsom has announced his intention to sign two climate-focused bills into law. These bills aim to increase transparency among major corporations regarding their greenhouse gas emissions and the financial risks associated with climate change. The first bill requires large businesses, including oil and gas companies and retail giants, to disclose both their direct greenhouse gas emissions and those resulting from activities like employee business travel. The goal is to encourage companies to assess and reduce their carbon emissions. The second bill mandates that companies with annual revenues exceeding $500 million disclose the financial risks posed by climate change and their plans to address these risks. This information is expected to be valuable for investors and lawmakers when making decisions about public and private investments. California aims to lead the way in addressing the climate crisis, and these bills are seen as important steps in that direction.
💧 Low Mississippi River Levels Pose Challenges for Farmers Eager to Transport Crops. A prolonged period of hot, dry weather has caused the Mississippi River's water levels to drop significantly, leading to transport restrictions for barge companies. This development is particularly concerning for Midwest farmers who are about to harvest their crops and rely on the river to transport corn and soybeans to the Gulf of Mexico. Due to the low river levels, barge companies are reducing their loads, which results in higher transportation costs for farmers. Around 60% of U.S. grain exports are typically transported by barge on the Mississippi River. This situation comes after a year of drought in the region, and without significant rain in the forecast, river levels are expected to remain low.
🖋 IRS Suspends Processing of Small Business Tax Break Due to Surge in Questionable Claims. IRS Commissioner Danny Werfel has ordered the immediate suspension of new claims for the employee retention credit (ERC), a pandemic-era small business tax break, due to a surge in questionable claims. The ERC, designed to support small businesses during the COVID-19 pandemic, has attracted fraudulent promoters promising businesses eligibility for the tax break. The processing pause will continue until at least the end of 2023, and existing claims may face extended processing times. The IRS is concerned about honest small business owners being scammed and has initiated investigations into potentially fraudulent ERC claims.
Get Smart 🧠
Ramp up that brain power for these advanced topics…
🪧 UAW Strike Reignites Debate Over Four-Day Workweek in Contract Negotiations. Union members from the United Auto Workers (UAW) have added a demand for a 32-hour, four-day workweek with no pay cuts to their list of requests during recent strikes against General Motors, Ford, and Stellantis. The idea of shortening the workweek has gained momentum in recent years, driven in part by the flexibility brought about by remote work during the pandemic and the increasing role of artificial intelligence in workplaces. Senator Bernie Sanders has voiced support for a shorter workweek, citing the potential for increased worker productivity due to technology advancements. Some countries have conducted trials of four-day workweeks, with positive outcomes such as improved sleep, increased family time, and reduced burnout reported by participants. Studies in Iceland and North America have also shown that a shorter workweek doesn't necessarily reduce productivity, and many companies don't plan to return to the traditional five-day workweek after such trials.
🔋 Hyundai Expands Georgia EV Supplier Network with Three Additional Manufacturers. Three Hyundai suppliers are planning to establish production plants in Georgia, with a combined investment of nearly $180 million. NVH Korea is investing over $72 million in a new facility in Locust Grove, which will produce EV battery system components and create 160 jobs. Daesol Ausys will establish a $72 million facility in West Point, producing luggage boards and covers and creating 140 jobs. Das Corp. will invest $35 million in a plant in Metter, producing automotive seat structures and creating 300 jobs. These investments follow Hyundai's announcement of a $5.5 billion manufacturing campus in Ellabell.
💰 Truck Parking Projects Included in $80M Highway Safety Grants. The Bipartisan Infrastructure Law has allocated federal funding to address the national shortage of available truck parking, which currently stands at approximately one spot for every 11 drivers. These grants will support various initiatives aimed at improving commercial motor vehicle safety, including the installation of real-time message signs in Kentucky, Delaware, and Indiana to guide truck drivers to rest area parking spaces. Additionally, funds will be used for research into automated driver alerts about upcoming work zones through electronic logging devices (ELDs). There is ongoing bipartisan legislation in Congress, known as the Truck Parking Improvement Act, aimed at providing additional funding for truck parking, though its passage remains uncertain.
The Workday Dash is an aggregation of articles regarding the transportation logistics, trucking, and supply chain industries for November 25, 2024, from iLevel Logistics Inc.