SCDigest Editorial Staff

Final TWIC Card Regulations for Port-Related Employees Published by the Department of Homeland Security

The U.S. department of Homeland Security this week finally released final regulations for the the Transportation Worker Identification Credential (TWIC) cards aimed to reduced risk of terrorism by background checks and secure identification for anyone working in or entering port facilities.

The rules apply to "commercial drivers authorized to transport hazardous materials in commerce to merchant mariners and workers who require unescorted access to secure areas on vessels and at maritime facilities," the department said.

"TWIC applicants will undergo a comprehensive background check that looks at criminal history records, terrorist watch lists, immigration status, and outstanding wants and warrants," said a statement issued by the Homeland Security Department.

The program includes a list of specific crimes that will disqualify a worker from obtaining a TWIC credential.

Enrollment in the program will begin in March at a small number of ports and then phased in nationwide.

There has been some concern that implementation of the TWIC program will suddenly eliminate thousands of illegal immigrants or others with a criminal background from the current pool of drayage drivers between ports transfer facilities (see Will “TWIC” Thwack the Global Supply Chain?).

Initially, the program will use manual inspection of the TWIC cards at port facilities to grant a driver access. Future plans envision use of biometric identification, such as fingerprints...

Wal-Mart Jumps on In-Store Workforce Optimization Bandwagon, but Move to Reduce Costs Could Cause More Labor Woes Some Say

The Wall Street Journal reports this week that Wal-Mart will be the latest in a string of vendors to roll out so called "work force optimization" software to help it reduce in-store labor costs for cashiers and shelf stockers. While these tools have shown themselves to provide substantial savings by better aligning store staffing to true personnel needs, some say that the move will be a negative to Wal-Mart store employees already championed by unions and others as being unfairly treated.

Workforce optimization solutions for store operations are available from such vendors as Kronos, WorkBrain, CyberShift and RedPrairie's Blue Cube unit, among others. They work in part by estimating what the needs will be by hour and day for specific types of personnel, using history, POS data, and other inputs, and then optimally scheduling employees to meet those needs. In theory, this could both lower costs and improve customer service.

Wal-Mart joins somewhat belatedly many other large retailers which have deployed such solutions in the past few years. Target, for example, uses the WorkBrain system in its stores.

Critics are complaining that the changes will create havoc for employees trying to schedule their work and home lives, and in some cases reduce work hours. Even part-time workers at Wal-Mart and other chains often have predictable schedules. Some commentators suggest these new systems will lead to more irregular schedules, making such things as setting up baby sitters harder for retail employees.

As the world's largest retailer and number one target of many union and progressive groups, Wal-Mart's move is triggering some of these complaints that were not heard when other retailers implemented similar tools...

Chinese Autos are Coming (from Chrysler) Putting more Pressure on the United Auto Workers

Chrysler announced last week it has signed a letter of intent with China's Chery Automobile Co. to begin importing certain models into the U.S and Western Europe starting in early 2008.

The initial deal would focus on sub-compact cars, and may sell for $10,000 or less, a price point that car companies say can't be made profitably in North American factories. The Wall Street Journal quotes Chrysler spokesman Jason Vines as saying, "We've been very clear we can't do this [build a car in this price range] with the cost basis in the U.S. - period."

In addition to adding a new entrant to the already fiercely competitive U.S. automobile market, the move is also seen as a signal to the United Auto Workers union that the hardball being played by the auto OEMs is not about to end in their effort to reign in labor and production costs. The UAW is set to begin negotiations in 2007 with GM, Ford and Daimler-Chrysler on new 3-year contract - negotiations that are expected to be challenging, and which will likely have a huge impact on the direction of the North American Auto Industry.

The potential for low cost imports from China is seen by many as a lever in the negotiations ot force more concessions from the union...

New JC Penney Exec in Charge of Store Operations and Logistics Gone after only 5 months

Retailer JC Penney announced last week that chief operating officer Catherine West, on the job for only 5 months, was being dismissed. Reports say that West, who came to Penney from a role as president of the credit card business for Capital One, just didn't get the unique world of retailing.

In her COO role, West was in charge of store operations, logistics, and property development. Over the years, it has proven especially challenging in retail for executives from outside the industry to find success. Reports out of Penney say the need to focus on the "thousands of details every day" that drive retail success was a different operating mode than West was used to.

Don't feel to sorrry for West, however. For her five months, she leaves with a $10 million severance package....

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