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  First Thoughts

    Dan Gilmore

    Editor

    Supply Chain Digest


 
Sept. 6, 2024

The Labor (Day) Supply Chain 2024 Part 2


Our Annual Review on the State of Labor in the Supply Chain

 

Last week, we published our annual column on The Labor (Day) Supply Chain, full of facts about US labor, including unionization rates, the number of workers in manufacturing and warehousing and their wages, and more.

It was again pretty good, if I do say so myself.


I am back with a part 2 this week, with a bit more of a narrative of the past year in labor.

Gilmore Says....

It appeared that Amazon would see its first union shop in the US, which labor leaders had hopes would spread to other Amazon fulfilment centers across the country. It isn’t working out that way.

What do you say?

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Most years there is a kind of keystone labor event that set the tone. We sort of had one in the past year in the unionization vote at a VW plant near Chattanooga, though its impact was soon dulled.

Let me explain.

After losing two high profile unionization campaigns in the past decade at the assembly plant near Chattanooga, TN, the United Autoworkers won a decisive victory in April to organize the factory, making it the first auto foreign-owned plant in the US to unionize.

Labor forces thought this could be the one that sets off a wave of unionization at the Southern auto plants, but the euphoria doesn’t last long, as the UAW lost a vote in May (56% to 44%) at a Mercedes factory in Alabama.

UAW membership fell 3.3% in 2023 to 370,000, its lowest point since 2009, according to US Labor Department data. In 1970, the union had 1.5 million members.

Then there is this one: It was big news in April of 2022 when a small private union led by ex-Amazon workers called the Amazon Labor Union (ALU) had won a vote to organize in a fulfillment center in Staten Island, NY.

At the time, it appeared that Amazon would see its first union shop in the US, which labor leaders had hopes would spread to other Amazon fulfilment centers across the country.

It isn’t working out that way. The ALU in New York has yet to force a contract on Amazon, and doesn’t appear to have the wherewithal to get it done. Lacking any dues payments from workers as a result, and with the donations that had kept it alive drying up, times are tough for the ALU.

Chris Smalls, ALU president, was fired by Amazon for breaking company rules regarding union activities. He enjoyed a brief moment of fame for the success at getting a vote to happen and then winning it at the Staten Island FC, all without the umbrella of a large national union. After the apparent win, Small met with labor organizers around the US working to unionize other sites to share his approach and keys to success.

But there were setbacks early on. In October, 2022, the ALU lost a union vote at another Amazon Staten Island FC.

With all that, in June of this year Amazon Labor Union members voted to affiliate with the 1.3 million-member International Brotherhood of Teamsters. Let’s see if they can get the job done.

The labor event of the year may in fact be the negotiation between dock workers belonging to the International Longshoremen’s Association (ILA) and representatives from East and Gulf Coast ports and terminals.

Some 47,000 workers are covered by the union, operating most of the largest US ports outside on LA/Long Beach.

Reports are the union is seeking a huge 76% rise in wages over a six-year contract, and is just going to say No over port automation.

Union leaders say there is strong support for a strike if they don’t get their way, with the contract expiring Sept. 30.

Speaking of strikes, they were once a commonplace event, but have now almost disappeared, at least outside the teacher ranks.

Last year, there were 33 major work stoppages (involving more than 1,000 workers) in the US, up from 22 in 2022, according to the BLS. But that compares with 69 in 1986, 276 in 1976 - and 470 in 1952.

87% of workers involved in these strikes were from service industries (teachers, healthcare). Manufacturing strikes accounted for just 13% of employees idled by major strikes last year, though that was up from only 2% the previous year.

So there you have it for Labor Day 2034. – quite a bit of info on US and supply chain labor.
How you enjoyed it.

The issue for labor is still not yet "stop the robots," but it will be soon enough.


Any reaction to our summary of the labor supply chain 2024? Let us know your thought at the Feedback section below.


Your Comments/Feedback

 
 
 
 
 
 
   

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