Working from the inside, Ken Paff has brought about reforms that give Teamster members more say in the running of their union. Now, he's working to eject the old guard and bring in new leadership.
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
Anyone affiliated with the International Brotherhood of Teamsters knows not to expect a neutral reaction when Ken Paff's name is mentioned.
To his supporters, Paff embodies an independent voice that holds the entrenched Teamster leadership accountable for actions that affect the 1.3 million-member union. To his critics, Paff is a nuisance whose importance is greatly exaggerated relative to the size of his group, the 10,000-member Teamsters for a Democratic Union (TDU).
Paff and the Detroit-based TDU are joined at the hip; he became the group's national organizer in 1978, a post he holds to this day. His tenure has been marked by such accomplishments as overturning the "two-thirds" rule, which had allowed contracts to be ratified with the approval of as little as one-third of the membership. Paff was also instrumental in helping Teamster members win the right to vote for its top leadership.
Throughout this year, Paff's voice will be heard. In the upcoming Teamster general election race, TDU has endorsed Sandy Pope, head of New York-based Local 805, who will challenge incumbent James P. Hoffa for the presidency. If Pope prevails, she will become the first woman to run the Teamsters. Lest anyone miss the significance of Paff's endorsement, consider that 20 years ago he backed another head of a New York local also considered a dark horse candidate. His name was Ron Carey.
In an interview with DC Velocity Senior Editor Mark B. Solomon, Paff, who turns 65 next month, spoke bluntly about Hoffa, the state of trucking labor, and why Pope is his choice. He also lashed out at leadership for allowing UPS Inc. to spend more than $6 billion to buy its way out of the Central States pension plan, a move he fears will, in the long run, cost the union dearly.
Q: One Teamster executive called you—with grudging admiration—a "pain in the ass." Do you think that's a reflection of Ken Paff's personality, or the nature of a dissident?
A: It's the TDU movement that the Hoffa administration finds threatening. It's not dissent per se, and it's certainly not about me. It's about an organized rank-and-file movement. These officials cannot stand it when members speak up and demand accountability. If there were no TDU, they would not have to worry about an alternative vision for the union, and members who want change would be isolated from one another. So the Hoffa administration spends a lot of resources attacking TDU.
They attack dissent, and they tend to support only those locals whose leaders march in lockstep. As a result, they weaken the union. In suppressing dissent, they are also undermining rank-and-file power and Teamster unity in action.
Q: TDU is supporting the campaign of Sandy Pope to be the next Teamster general president. What qualities do you see in her that convince you she is the most qualified to head the union? And how would her election affect both freight carriers and their employees? A: Sandy Pope is a Teamster. Hoffa is a celebrity. He is not involved in bargaining contracts, dealing with members' pension funds, aiding locals, or organizing—the lifeblood of the union. He spends his time at photo ops and golf outings, and with his inner circle.
Sandy Pope comes from the ranks and has experience in leadership at all levels of the union. Most of all, she has a vision for tapping rank-and-file power to build the union. To put the union's resources into building strength in core Teamster industries. And she's not going to be in bed with the corporations.
There is a great potential to draw Teamsters—who are by and large good unionists—into action behind union programs. We saw the beginnings of this in the 1990s, including during the UPS strike of 1997. That strike was not just won at the table. It was a full year of membership mobilization and involvement in [the] struggle. Sandy Pope was a part of that team. Hoffa and his people tried to undermine that struggle. They cozy up to UPS management and play "let's make a deal."
Q: How would you rate the job that Hoffa has done running the Teamsters? Where has he succeeded? And where has he fallen short? A: His specialty is working the media, which can be beneficial for the Teamsters and the labor movement. But as a strategy, it points in the wrong direction. When he ran for Teamster president, his slogan was "The Hoffa name means power," and for a while, he seemed to actually believe that by puffing himself up, it could somehow make the union strong. But the air is out of that balloon. He's fallen short in defending Teamster pensions, maintaining and strengthening national contracts, and helping local unions. He ran on "local autonomy" but runs the union top down.
Q: Trucking labor has been in what appears to be a long-term secular decline in membership and in influence. What, in your view, can re-energize the freight division, if indeed anything can be done? A: I start with this basic point: Transport and distribution are growth industries, and cannot be exported. It's not like manufacturing. So the Teamsters union should be in a growth mode in trucking, warehousing, distribution, rail, construction, waste, and public employment. In today's political and economic climate, that won't be easy, but it can be done with a long-term plan in place and a leadership capable of implementing it. It cannot be done trading Teamster power for short-term gains, like Hoffa's deal that let UPS bust out of the Central States pension plan. That was a crime.
UPS Freight is a critical piece of the plan. So is rebuilding the master freight contract. And organizing the non-union LTLs is another piece of the strategy. The present leadership has a short-term outlook—since it's a big challenge, they throw up their hands and head for the golf course, where they can meet up with trucking management. Can the union be rebuilt in freight and trucking? Absolutely. But it won't happen overnight, and it certainly won't happen with the present leadership.
Q: You have been skeptical of YRC Worldwide's efforts to survive through its series of restructured labor agreements. How do you assess its prospects? And have the rank and file sacrificed too much to keep the company alive? A: When the ship hits the reef, you can't blame the galley slaves. It's been poorly managed.
We're all hoping YRC will survive. It may depend on the pace of economic recovery. The working Teamsters have done far more than their share to make it possible. Right now, they are about $11 per hour under [National Master Freight Agreement levels] on pensions and wages, and they've lost additional contract protections that took decades of Teamster power to win. I'd be hard-pressed to name any other group of American workers who have taken such a big hit in their standard of living.
Q: ABF Freight System, YRC's chief union rival, sued YRC and the Teamsters on grounds the two negotiated their own agreements outside of the National Master Freight Agreement. But the suit was dismissed as having no legal standing. Do you believe ABF has a case? A: We said from the start that ABF didn't have a case, and the suit was promptly dismissed. But ABF management isn't stupid. They got a lot of press and reached a lot of Teamsters with their viewpoint. They also exposed that Hoffa approached them to offer them concessions, if they would acquire and merge with YRC. What genius was Hoffa listening to on that one?
Q: Legislation was introduced last year to reform multi-employer pension plans by requiring the Pension Benefit Guaranty Corp. (PBGC) to take over the pension obligations of retirees of bankrupt companies. However, bills in both houses went nowhere in the last Congress. Should this be a front-burner issue, and is there political will to change the system? A: This should be a front-burner issue. We are in danger of losing pensions in this country. Not just Teamsters, but millions of workers, from teachers to industrial workers.
The Teamsters should take the lead and make this a rallying cry. Sandy Pope has talked about organizing a march on Washington to defend pensions, to involve all of labor, coalitions representing seniors, and pension rights advocates.
The bill to strengthen the PBGC should be a priority. The Hoffa administration supports the bill, which is a start. It's time for the Teamsters union to put muscle behind it. It's time to build a movement, starting with Teamster members. The Tea Party has tapped people's anger and frustrations, but they point it all in the wrong direction. We need a movement to aim at real solutions. Defending Teamster pensions—and all pensions—is a good place to start.
Container traffic is finally back to typical levels at the port of Montreal, two months after dockworkers returned to work following a strike, port officials said Thursday.
Today that arbitration continues as the two sides work to forge a new contract. And port leaders with the Maritime Employers Association (MEA) are reminding workers represented by the Canadian Union of Public Employees (CUPE) that the CIRB decision “rules out any pressure tactics affecting operations until the next collective agreement expires.”
The Port of Montreal alone said it had to manage a backlog of about 13,350 twenty-foot equivalent units (TEUs) on the ground, as well as 28,000 feet of freight cars headed for export.
Port leaders this week said they had now completed that task. “Two months after operations fully resumed at the Port of Montreal, as directed by the Canada Industrial Relations Board, the Montreal Port Authority (MPA) is pleased to announce that all port activities are now completely back to normal. Both the impact of the labour dispute and the subsequent resumption of activities required concerted efforts on the part of all port partners to get things back to normal as quickly as possible, even over the holiday season,” the port said in a release.
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.
ReposiTrak, a global food traceability network operator, will partner with Upshop, a provider of store operations technology for food retailers, to create an end-to-end grocery traceability solution that reaches from the supply chain to the retail store, the firms said today.
The partnership creates a data connection between suppliers and the retail store. It works by integrating Salt Lake City-based ReposiTrak’s network of thousands of suppliers and their traceability shipment data with Austin, Texas-based Upshop’s network of more than 450 retailers and their retail stores.
That accomplishment is important because it will allow food sector trading partners to meet the U.S. FDA’s Food Safety Modernization Act Section 204d (FSMA 204) requirements that they must create and store complete traceability records for certain foods.
And according to ReposiTrak and Upshop, the traceability solution may also unlock potential business benefits. It could do that by creating margin and growth opportunities in stores by connecting supply chain data with store data, thus allowing users to optimize inventory, labor, and customer experience management automation.
"Traceability requires data from the supply chain and – importantly – confirmation at the retail store that the proper and accurate lot code data from each shipment has been captured when the product is received. The missing piece for us has been the supply chain data. ReposiTrak is the leader in capturing and managing supply chain data, starting at the suppliers. Together, we can deliver a single, comprehensive traceability solution," Mark Hawthorne, chief innovation and strategy officer at Upshop, said in a release.
"Once the data is flowing the benefits are compounding. Traceability data can be used to improve food safety, reduce invoice discrepancies, and identify ways to reduce waste and improve efficiencies throughout the store,” Hawthorne said.
Under FSMA 204, retailers are required by law to track Key Data Elements (KDEs) to the store-level for every shipment containing high-risk food items from the Food Traceability List (FTL). ReposiTrak and Upshop say that major industry retailers have made public commitments to traceability, announcing programs that require more traceability data for all food product on a faster timeline. The efforts of those retailers have activated the industry, motivating others to institute traceability programs now, ahead of the FDA’s enforcement deadline of January 20, 2026.