Labor contract negotiations between the United Parcel Service (UPS) and the International Brotherhood of Teamsters, representing 340,000 UPS drivers and package handlers, have stalled, and if an agreement is not reached by the end of the month (July), Union employees have authorized a strike as early as August 1st. UPS moves an estimated $3.8 billion in goods per day, almost 6 percent of the U.S. GDP, and UPS competitors have stated they do not have the capacity to handle the additional 20 million packages a day. SFIA urged President Biden to engage in the labor talks to ensure there is not an unnecessary disruption in supply chains.
The two sides have reached a tentative agreement on many issues, including 55 non-economic issues like reducing temperatures inside trucks and UPS will re-classifying weekend drivers as ‘regular drivers’ eligible for full benefits. The sides remain at an impasse over part-time pay; Teamsters want to increase the starting wage from $15.50/hour to $20/hour. UPS counters that after 30 days, the average wage of a part-time worker is $20/hour, and the employee receives healthcare and pension benefits.
The Teamsters are holding firm and using these negotiations to show what they can do for workers as they look to expand into companies like Amazon. Teamsters President Sean O’Brien commented on July 1 that the labor talks are “the largest collective bargaining agreement in any private sector union,” and the contract could “set the tone and set the standard high for labor — not just the Teamsters, but the entire labor movement.” The Teamsters will remain on the job through the ratification process if an agreement is reached. If no agreement is reached, or if the contract is not ratified, UPS workers will strike.
With agreement on almost all the issues, SFIA believes the Administration’s involvement in the negotiations will lead to a deal. The President and Labor Secretary were instrumental in resolving rail and west coast port strikes. Labor unrest is an area where government involvement can avoid domestic disruptions in supply chains.
Click here to view the letter.
For more information, please contact Bill Sells, SVP Government Relations & Public Affairs, at [email protected].
The Sports & Fitness Industry Association (SFIA) joined leaders in the sportswear, performance apparel, footwear, and fashion industries on a letter pushing for the adoption of digital labels. Hard labels are out-of-date and offer limited space for including information. Digital labels can be more comprehensive, offering unlimited information to consumers. With a myriad of reporting requirements around the globe, compliance with labeling laws is constantly evolving. The challenge of keeping labels current with new laws creates difficulties for manufacturers; moving to digital labels will provide greater flexibility in meeting requirements on consumer education. Including information on a product’s care, content, importer requirements, and country of origin on a single label is difficult and hard for consumers to read. Digital labels solve this problem by providing consumers with a website or QR code that contains individual country reporting requirements and additional consumer information.
Labels require 5.7 million miles of label tape annually, enough for 12 roundtrips to the moon, and creating cloth labels generates 343,000 metric tons of CO2 a year. Oftentimes, labels are removed from products for comfort and the information is lost forever. The bottom line is cloth labels leave a significant environmental footprint that can be eliminated. Moving to soft labels will remove the environmental harm created by cloth labels, providing greater flexibility for manufacturers and offering consumers a better platform for receiving product information.
Click here to view the full letter.
For more information, please contact Bill Sells, SVP Government Relations & Public Affairs, at [email protected].
Legislation to help curb sales of counterfeit products passed in December 2022 as part of the year-end Omnibus Budget bill. The Integrity, Notification, Fairness in Online Retail Marketplace (INFORM) Consumers Act went into effect on June 27, 2023, providing increased oversight of online marketplaces to better protect consumers from the sale of counterfeit products.
Online retailers like Amazon, e-Bay, and Etsy are now required to collect the seller’s name, business address, contact info, tax ID number, government-issued IDs, and bank account information to verify the identity of the seller. Consumers would have access to sellers’ names, business addresses, and contact info. Online retail platforms are required to identify and remove counterfeit products from their sites or face fines of up to $50,000 for each violation.
SFIA is thrilled with the implementation of the INFORM Act to enhance intellectual property rights in an evolving marketplace. As new sales platforms come online, the INFORM Act will help curb the sale of counterfeit products.
For more information, please contact Bill Sells, SVP Government Relations & Public Affairs, at [email protected].
The Sports & Fitness Industry Association paid tribute to Congressman Chuck Fleischmann (R-TN), a great friend of sports, a believer in fitness, and a longtime supporter of increased physical activity in America, especially for young people. A longtime supporter of the PHIT Act, Congressman Fleischmann sees the need to lower family physical activity expenses. Mr. Fleischmann is currently leading the effort to capture the economic impact of youth sports in America; to show the benefits beyond health. Congressman Fleischmann understands physical activity is key to good mental and physical health.
Mr. Fleischmann leads by example, as a regular in the gym and a three-sport athlete in Congress, playing on the Congressional football, baseball, and basketball teams. The Congressman is a true champion of health and fitness, practicing what he preaches in Congress, the gym, and on sports teams. SFIA is proud to recognize Representative Fleischmann for his commitment to sports and dedication to increasing activity for a healthier America.
For more information on our public policy efforts, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
The Miscellaneous Tariff Bill (MTB) and Generalized System of Preferences (GSP) have provided billions in tariff relief on industry products. Both programs expired at the beginning of 2021 and Congress has failed to renew them despite bipartisan support.
The lapse of GSP has kept production in China, despite the Section 301 tariffs, and its renewal would incentivize sourcing in GSP-eligible countries. 66 Congressmen sent a letter to the Ways & Means Chairman Jason Smith and Ranking Member Richard Neal on GSP renewal to help move supply chains away from China.
The MTB eliminates or reduces tariffs on imports of products no longer manufactured in the U.S. The U.S. International Trade Commission recommended the inclusion of 82 SFIA petitions in the MTB. Each petition is capped at $500,000 – providing up to $41 million in tariff relief on sporting goods and fitness products. SFIA joined a letter to the Chairmen and Ranking Members of the House and Senate Tax Committees requesting immediate action on both GSP and MTB.
Click here to view the letter.
For more information on tariff relief efforts, please contact Bill Sells, SVP Government Relations & Public Affairs, at [email protected].
SFIA applauds Labor Department’s role in negotiating PMA/ILWU deal
Washington, D.C. (June 15, 2023): After more than a year of contract talks, the Pacific Maritime Association (PMA), representing 29 West Coast Ports, and the International Longshoremen and Warehouse Union (ILWU), representing 22,000 union members, announced a tentative agreement on a six-year labor agreement. The new agreement still must be ratified by the individual Unions to avoid further supply chain disruptions at West Coast Ports.
Recent labor slowdowns and removal of key cargo handling equipment for safety concerns had slowed operations at the Ports of Los Angeles, Long Beach, Oakland, and Seattle. SFIA pressed for the Labor Department to engage in negotiations to reach an agreement and avoid unnecessary disruptions. Acting Labor Secretary Julie Su stepped in and worked with the PMA and ILWU to finalize the agreement. Here is Secretary Su’s news release on the agreement.
President Biden released a statement commending Secretary Su, the PMA, and the ILWU for reaching the agreement. Details of the agreement have not been announced but the PMA and ILWU issued a joint statement on the tentative deal.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (June 13, 2023): The Pacific Maritime Association (PMA) and the International Longshoreman & Warehouse Union (ILWU) remain deadlocked in negotiations on a new collective bargaining agreement for 22,000 workers at 29 west coast ports. The Union has been working without a contract since last July and until recently west coast ports were operating at full capacity.
Over the weekend, service disruptions at the Ports of Los Angeles, Long Beach, Seattle, and Takoma were reported by the terminal operators. In L.A. and Long Beach, workers did not show up to secure outgoing cargo. This follows previous disruptions at the Ports due to not staggering meals, effectively shutting down ports for lunch and dinner breaks, and taking key cargo handling equipment out of service due to safety concerns. The PMA reported the Port of Seattle was shut down over the weekend, the ILWU has denied there was a shutdown.
Both the PMA and the ILWU released statements regarding the negotiations pointing fingers at the other side for misinformation and failing to reach an agreement. The Chamber of Commerce added to the chorus of business interests requesting the Department of Labor intervene to ensure there are no avoidable disruptions at west coast ports during negotiations. SFIA has joined the business community on similar letters to the President.
Shippers have moved some cargo through Canadian ports to limit exposure to the volatile U.S. West Coast Ports. Vancouver is Canada’s biggest Port and a popular alternate shipping destination to avoid labor shutdowns at West Coast Ports. The Canadian port option may be ending soon, as Canadian dockworkers voted to strike as early as June 24th.
SFIA will continue to press for a resolution to the West Coast Port Labor negotiations to avoid unnecessary disruptions in the supply chain.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (June 5, 2023): As West Coast Port labor talks drag on, the ports are resorting to slowdowns and stoppages for more leverage in negotiations. Following earlier moves to remove key equipment for safety reasons and no longer staggering meal breaks leading to shutdowns at terminals, the Port of Long Beach shut down over the weekend. The Port schedule for the coming week suggests more problems Monday and Friday.
The Pacific Maritime Association (PMA) and International Longshoreman and Warehouse Union (ILWU) have resolved issues around healthcare and automation but are at an impasse over benefits and pay. SFIA sent a letter to the President earlier this year requesting intervention by the Labor Department to keep the Ports open during negotiations to avoid unnecessary supply chain disruptions. Additional information on the shutdown and negotiations can be found here.
SFIA will continue to press the Administration to engage in the negotiations to endure the free flow of goods through west coast ports during labor talks.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (June 2, 2023): With inflation high and consumer confidence declining, the post-pandemic economic recovery remains sluggish. Dropping China Tariffs would lower consumer prices to help with the recovery, but there has been no movement on the tariffs. Despite repeated requests from Congress, the U.S. Trade Representatives have been slow to review China tariffs and have given no indication if they will re-open an exclusion process. To help ease the inflationary pressure, SFIA joined other business interests in pressing Congress to be more aggressive in ending the Section 301 tariffs on Chinese imports or re-open a transparent exclusions process, at a minimum.
The letter to the Congressional Select Committee on the Chinese Communist Party outlines the tariff’s failure to change Chinese behavior and that the tariff cost is absorbed by U.S. companies and consumers, not Chinese manufacturers. Chinese companies continue to violate international rules on intellectual property rights, forced technology transfers, and innovation, while U.S. companies and consumers absorb the cost of the tariffs. In short, the Section 301 tariffs have made U.S. companies less competitive while delivering no results. The business community believes it is time to work with our allies on an alternative approach to reign in illegal and unethical Chinese trade practices
SFIA will continue to pursue relief from China Tariffs to help its members keep costs down to help the economy bounce back and increase U.S. competitiveness globally.
Click here to view the letter.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].
Washington, D.C. (May 3, 2023): Storage fees charged by railroads at U.S. interior rail terminals is a form of demurrage, which has cost American businesses hundreds of millions of dollars in recent years. Ocean carriers rely on rail and trucking to satisfy delivery obligations. When delays at the railyard occur, rail storage fees are paid directly to the railroad to secure the release of shipments. Unlike ocean terminals, which are incentivized to improve network efficiencies by Federal Maritime Commission (FMC), rail terminals are not subject to oversight by FMC and they are exempt from Surface Transportation Board rules, which do not apply to intermodal transportation. In short, railroads are not governed by the Shipping Act, enforced by the FMC, and rail storage fees have gone unchecked.
SFIA joined 70 other business interests on a letter to Congressional Leaders requesting help in clarifying oversight of rail storage fees. The letter asks for rail storage fees to be billed through ocean carriers and subject to the detention and demurrage requirements of the Ocean Shipping Reform Act of 2022 (OSRA22) and subject to FMC oversight.
Click here to view the letter.
For more information or for questions, please contact Bill Sells, SVP, Government & Public Affairs, at [email protected].