Washington, D.C. (Aug 13, 2024): With the September 30 deadline for a new Contract looming, the International Longshoreman’s Association (ILA) is holding firm in negotiations for a new contract for dockworkers from Maine to Texas. The ILA rejected the latest offer from the U.S. Maritime Alliance (USMX) that included a pay raise 32 percent higher than West Coast dockworkers received last year. The ILA has indicated it is seeking a nearly 80 percent wage increase for dockworkers in the new contract.
In addition, the USMX contract includes a boost in starting salaries, increases in employer retirement contributions, and first-rate healthcare coverage. The ILA has cited an “autogate” at the Port of Mobile as “automation” threatening union jobs and the ILA was never consulted. With ‘Automation’ a major sticking point in contract talks, the USMX proposal requires ports to consult with the ILA on the introduction of new technology that impacts union jobs and hours.
The USMX remains committed to negotiating a Master Contract for all East and Gulf Coast Ports before the current contract expires on September 30th. ILA says the two sides“are very far apart, particularly on economic issues.” ILA President Harold Dagget has consistently said dockworkers will not work past September 30 without a new contract, setting up a potential showdown that will disrupt supply chains. With six weeks to finalize a deal, pressure is on to find common ground or we could see the first East Coast dockworker strike in almost 50 years.
A recent SFIA webinar on Supply Chains included a discussion on East Coast Ports and shipping options. Members can access the webinar recording and slides by clicking here.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
Washington, D.C. (July 19, 2024): On a recent SFIA Webinar, Navigating PFAS Regulations: Addressing Challenges and Consumer Concerns, legal and compliance experts Anne Marie Ellis, Shareholder, CA Chair Product Liability, Buchalter; Bailee Pelham, Associate, Buchalter; Sarahann Rackl, Ph.D., P.E, Principal Engineer, Exponent; and Sara Hearon, Ph.D., M.P.H., Senior Scientist, Exponent, shared the challenges presented by new PFAS regulations in the U.S. New York and California are leading the way on more expansive apparel PFAS content restrictions for products beginning in January of 2025, but Colorado, Connecticut, Maine, Maryland, Minnesota, and Vermont all have new PFAS restrictions going into effect in the next four years with other states are expected to follow suit.
One of the biggest concerns is claiming products to be “PFAS-free”. Companies need to exercise caution in marketing claims to avoid any investigations into compliance with the new laws. There have already been 75 filings under Proposition 65 for PFAS and similar chemical violations in California this year, and the new laws haven’t even gone into effect yet.
The PFAS webinar identified footwear and apparel as industry products with the greatest exposure, especially if they are waterproof, but PFAS compliance is not limited to footwear and apparel. Ski wax is a PFAS target in Colorado, Connecticut, Maine, and Minnesota. Retailers are looking at vendor agreements for ways to move liability to manufacturers. One issue of particular concern is false advertising claims, which are not typically covered by insurers in class action lawsuits.
The health threats related to PFAS continue to grow as does the list of “forever” chemicals subject to PFAS restrictions. Claiming products are “PFAS-free” requires proof of claim or companies can be subjected to additional scrutiny and fines. SFIA was pleased to present this timely webinar to help the industry understand the exposure and risks posed by PFAS, and the actions needed to comply with new laws. The PFAS Webinar, along with all SFIA webinars, was free to members. Members can access the webinar recording and slides by clicking here.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
An interview with Youth Sports Champion Congressman Chuck Fleischmann (R-TN)
Congress is full of people who support youth sports, but few step up to lead the charge on innovative efforts to advance youth sports policies like Congressman Chuck Fleischmann. The Congressman understands youth sports, as a lifelong athlete himself who still plays on the Congressional Baseball, Football, and Basketball teams. Mr. Fleischmann is a regular in the gym, a long-time advocate of the PHIT Act to lower family activity costs, and recently, he led the successful effort to secure funding for a Bureau of Economic Analysis (BEA) Study on the Economic Impact of Youth Sports. The BEA study will be a huge asset to the industry, layering the economic benefits of youth sports on top of the health and social benefits to advance youth sports policies.
SFIA recently sat down with Congressman Fleischmann to discuss youth sports, the benefits of participation, the barriers families face, and how participation in Congressional Sports has helped him build relationships on Capitol Hill and in DC.
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Q&A
Q: When did you start playing sports and how did your childhood sports experiences influence you?
A: Age five. Playing sports during my childhood taught me the importance of fair, strong competition.
Q: You came to Congress and immediately jumped into Congressional Sports, then dedicated yourself to improving your fitness. You are a model for healthy lifestyles. How has playing on the Congressional Baseball and Football teams helped you as a legislator? How has your commitment to fitness impacted your life?
A: As a Legislator, taking part in Congressional Sports, specifically playing every year in the Congressional Baseball Game and the Congressional Football Game, has allowed me to make strong friendships with Members in my own Conference, across the aisle, across the Capitol, and across multiple Administrations.
My commitment to fitness has allowed me, at almost 62, to live a healthy life, play healthy, and still be able to take part in competitive sports.
Q: What drives your passion for sports and commitment to ensuring America’s youth have the opportunity to play sports?
A: The love of all sports, but specifically, my love of the sport of baseball, and competition. America’s youth can learn early the values of healthy competition and avoid, if possible, negative lifestyle choices which would affect them in a harmful way as they grow older.
Q: What do you see as the biggest barriers and threats to youth sports participation? Biggest Benefits?
A: Barriers: Access and exposure, lack of resources.
Benefits: Creating relationships and friendships while enjoying the benefits of the sport(s) of their choosing.
Q: Thank you for your leadership in capturing the economic impact of youth sports. Why does the economic impact matter and how will knowing the economic side change the youth sports conversation in Washington?
A: Parents, friends, families, and communities will invest wisely in equipment, personnel, and facilities to promote youth sports. Tourism will also benefit.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
Washington, D.C. (July 9, 2024): Youth sports is a sleeping giant in Washington, but that is about to change. SFIA applauds Congressman Chuck Fleischmann (R-TN) on securing language in the Commerce Department Appropriations for a comprehensive study on the economic impact of youth sports in America (page 16). Layering the economic data on top of the social and health benefits of youth sports will move policies through Congress.
Everyone in Congress supports active kids and youth sports for a variety of social and health reasons, yet many policies to address the cost and access barriers remain stalled. The pandemic disrupted youth sports like never before and the physical and mental health fallout is well documented. The benefits of team sports and activity for children have never been more evident; Congress needs to help families get kids in the game.
SFIA identified the Commerce Department’s Bureau of Economic Analysis (BEA) as the perfect government agency to collect data from the Departments of Education, Labor, Health & Human Services, and Interior on the total economic impact of youth sports in the U.S. SFIA is the gold-standard for industry research and this new government study on the economic impact of youth sports will be a valuable resource for the industry and complement SFIA’s ongoing research.
Any new government study needs funding and SFIA found the right champion in Congressman Fleischmann. The Congressman was SFIA’s top choice; an athlete, playing on the Congressional Baseball, Football, and Basketball teams, a regular in the House gym, and an Appropriations Subcommittee Chairman. The Congressman took on the challenge of funding the study with passion and commitment and delivered the language in the Commerce Appropriations bill to launch the study:
Youth Sports Economic Impact Study — The Committee directs the Secretary to report to the Committee, no later than 90 days after the enactment of this Act, on the feasibility of entering into a joint memorandum with the Secretary of Education, the Secretary of the Interior, the Secretary of Health and Human Services, and Secretary of Labor to assess the youth fitness and sports economy of the United States by identifying the total revenue generated from youth fitness and sports businesses and facilities on a national and State level; the total jobs created by youth fitness and sports businesses and facilities; and the total dollar value of the youth fitness and sports economy.
The study will be funded in 2025 with the first report released in 2026. A similar BEA study for Outdoor Recreation found a total economic output of $1.1 trillion in 2023 or 2.4 percent of U.S. GDP. SFIA believes the youth sports figures will be even bigger. Youth sports exist in every community in America and have more participants through school, community, and club sports programs than outdoor recreation.
Active Americans are healthier and spend less on preventable medical conditions; capturing the economic impact of activity in America will boost federal investments in youth sports and adult fitness. SFIA thanks Congressman Fleischmann for his vision and leadership.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected].
Washington, D.C. (June 18, 2024): “The threat of a coast-wide strike on October 1, 2024, is becoming more likely as U.S. Maritime Alliance (USMX) and its member companies continue to drag their feet,” warned International Longshoremen’s Association (ILA) President Harold Daggett
This ominous message from the ILA was included in an ILA Press Release last week highlighting the record profits of shipping companies and union concerns over automation as they negotiate a new Master Contract for ports from Maine to Texas that seeks greater distribution of shipping revenues to dock workers.
Technological advances have led to increased efficiencies via automated tracking of cargo and increased use of technology to perform clerical tasks. Both advancements are good for shipping but a threat to Union jobs. In addition, Unions are upset that the tech support jobs created by automation are not union jobs and they should be since work is performed around the ports.
The ILA walked away from the negotiating table on June 10 over an automation issue at the Port of Mobile. Union leaders do not believe the USMX is negotiating in good faith as shippers and ports explore ways to circumvent the Union’s traditional roles, including using technological solutions to perform basic clerical tasks that eliminate Union jobs.
SFIA responded to this development with a letter to President Biden and key cabinet secretaries asking for the government to intervene to ensure fragile supply chains are not artificially disrupted by a labor strike at ports from Maine to Texas. The resiliency of supply chains has been tested recently by Red Sea hostilities, the Ukraine war, S. China Sea tensions, and the recent drought in the Panama Canal; an East Cost Port Labor strike as we move into the peak shipping season would present a huge challenge to supply chains and lead to diversion of cargo to West Coast ports.
The Unions point out that A.P. Moeller-Maersk had $82 billion in revenue in FY 2022, a 50 percent increase over FY 2021. Similarly, Mediterranean Shipping Company had revenues of $28.2 Billion, COSCO saw revenues jump from $51.67 billion in FY 21 to $63.2 billion in FY 2022 and APM Terminals saw a nine percent growth in revenues to $4.4 billion in FY 22. All these companies’ interests are represented by USMX on behalf of the ports.
The current ILA contract with East and Gulf Coast Ports expires on September 30th, five weeks from Election Day. Labor is driving a hard bargain, but East and Gulf Coast Port unions use a compensation formula that includes the volume of cargo moved through their port. A strike would have a direct impact on Union wages which will put pressure on Union leadership to reach a new labor agreement. If talks drag on and a strike looks more imminent, expect the Administration to step in to avoid a supply chain crisis so close to the Election but there are no guarantees with Unions playing hardball in sharing shipper and port finances.
For more information, please contact Bill Sells, SFIA SVP for Government & Public Affairs, at [email protected]
(Thursday, June 13) The 2024 Congressional Baseball Game tee’d up all kinds of action yesterday at Nationals Park in Washington D.C.!
The Republicans won 31-11, a blowout as expected with the Democrat pitchers struggling with control, and Republican pitcher Greg Steube (R-FL) was strong on the mound and at plate. The Republicans had better hitters, and there were lots of steals and errors on both sides. But the important part – the game raised $2.2 million for charity.
Thank you to SFIA Members DeMarini, Rawlings, Easton, Wilson, Marucci, and Franklin for providing equipment and to Champro who provided polos for the coaches.
Check out some pics below from the big day!
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
SFIA members Franklin Sports, Marucci, Wilson/DeMarini, and Rawlings/Easton are supporting the Congressional Baseball and Softball games with equipment donations! Below you can find a sneak peek of the practices – leading up to the games on June 12 (baseball) and June 26 (softball)!
The games will raise collectively close to $2 million for charity. Funds from the Congressional Softball game go to the Young Survivors Coalition to help breast cancer survivors. The Congressional Baseball game money is split among many charities – you can find the beneficiaries on the website.
Thank you to our SFIA Members who help support the cause!
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (May 23, 2024): In an ironic twist, the office of the U.S. Trade Representative shared they would open a portal for comments on the impact of Section 301 Tariffs on businesses in the same Federal Register notice they announced new tariffs of 25 to 100 percent on a long list of products.
None of the new tariffs target sports or fitness equipment directly, but tariffs on aluminum, steel, and iron would rise to 25 percent. Companies with products containing steel, aluminum, or iron from China are encouraged to review Annex A of the Federal Register notice to determine their new tariff exposure.
With the announcement of new tariffs and the USTR’s 4-year review on the impact of Section 301 Tariffs limiting the exclusion process to machinery used in domestic manufacturing, there is no avenue to Section 301 Tariff Relief at this time. This is disappointing following the General Accountability Office (GAO) review of the Section 301 Exclusion process for consumer goods on lists 3 & 4A, which found the process seriously flawed and recommended a new fair and transparent exclusion process for consumer goods.
The USTR comment portal offers an opportunity to share the impact of the current tariffs on your business with USTR, what the new tariffs mean to your business, and press for a new fair and transparent exclusion process for consumer goods. Please find questions USTR posted for comment consideration here. The 30-day comment period opens on May 29 and closes June 28. Comments can be submitted using this link https://comments.ustr.gov/s/ under the heading “Request for Comments: Proposed Modifications to the Section 301 Actions and Proposed Exclusion Process” (docket number USTR–2024–0007).
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (May 21, 2024): The U.S. Trade Representative (USTR) released an overdue 4-year review on the impact of Section 301 Tariffs. The report found that China has made progress, but has not met the terms of the Phase One agreement and the tariffs will remain in place. It was hoped the report would offer a pathway to exclusions for consumer goods on List 3 & 4A, but only machinery equipment used in domestic manufacturing will be eligible for new exclusions.
Specifically, the report noted China continues to abuse tariff transfer policies and that U.S. Customs & Border Protection (CBP) needs more resources to enforce Section 301 violations. The U.S.T.R. also recommended increased cooperation between the public and private sectors to combat state-sponsored IP theft and the need to diversify supply chains for improved resiliency.
“The report is very disappointing,” said Bill Sells, SFIA SVP for Government and Public Affairs. “The goal of the tariffs was to punish China for IP violations and unfair trade practices and drive manufacturing jobs back to the U.S. The Section 301 tariffs have not accomplished any of these goals, and are nothing more than a tax that is ultimately paid by consumers. It is very unfortunate that we understand the importance of active lifestyles to overall health like never before, but we are artificially raising the cost barrier to healthier lives.”
In addition to not re-opening a fair and transparent exclusion process as recommended by the General Accountability Office (GAO), the President announced high tariffs on electric vehicles, batteries, and solar panels made in China. Former President Trump has announced his intention to raise and expand Section 301 Tariffs if elected, meaning the trade war with China will continue.
To facilitate production outside of China, the House Ways & Means Committee passed legislation to re-authorize the Generalized System of Preferences (GSP) and modify the Di Minimis exemption. GSP eliminates U.S. tariffs on products sourced in 119 countries with developing economies. Di minimis reform would restrict the use of direct-to-consumer low-dollar shipments from China to stem the flow of fake products entering the U.S. without CBP inspection. Both bills await a House floor vote.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Up to $40 Million in Tariff Relief on Sports & Fitness Products Previously Approved
Washington, D.C. (May 15, 2024): More than three years after MTB tariff relief lapsed, Congress is moving to renew this vital program. The House Ways & Means Trade Subcommittee Chairman Adrian Smith (R-NE) introduced the “Miscellaneous Tariff Bill Reform Act” on May 14th with support from 17 House Ways & Means members.
“Congress must renew this historically bipartisan legislation which unanimously passed out of the Ways & Means Committee in 2016,” stated Ways & Means Trade Subcommittee Chairman, Adrian Smith. “Fighting for American workers and industry demands we do everything we can to make U.S.-manufactured goods more competitive in both domestic and international markets. This legislation will deliver input cost relief to American producers, in turn benefiting consumers worldwide.”
The proposed MTB bill would offer duty-free treatment through 2025 for products recommended by U.S. International Trade Commission, after vetting petitions, for inclusion in the MTB bill. MTB relief would be retroactive from January 1, 2021. The bill would align with U.S. Trade policy toward China by excluding finished products subject to Section 301 duties but allow U.S. manufacturers duty-free access to parts and components. The bill would reauthorize the USITC-initiated processes for vetting future MTB relief petitions to create new tariff relief opportunities for domestic manufacturers on inputs not made in the U.S.
The introduction of the MTB Reform Act is a long overdue first step in the process. House Republicans will now look to move the MTB Reform Act through the Ways & Means Committee and then bring it to the House floor for a vote. No timetable has been set for Ways & Means consideration. While MTB has always been bipartisan, the heat of an election year has kept Democrats off this bill as they seek to build support with organized labor leading up to the fall elections. With Democrats controlling the Senate, a compromise will be necessary to get it through the Senate and to the President’s desk in 2024.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].