Organizing the supply chain: interview with Jeff Farmer
There are a lot of folks working in transport and logistics who are unaffiliated with a labor union. Jeff Farmer, the Teamsters' director of organizing, wants to change that.
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.
The supply chain is a big and small place. Big in that it touches virtually every part of the planet and affects each one of us. But small in that the people who make it go are often one- or two-person bands that don't get much notice yet are vital cogs in an enormous wheel.
For the Teamsters union, this collection of port drivers, warehousemen and women, and loaders and unloaders, among others, offers tremendous opportunity to bulk up its membership rolls. It is uncharted territory, however, and one that's difficult to crack because of labor laws that bar independent contractors, which many of these workers happen to be, from forming a union.
The union's director of organizing, Jeff Farmer, recently spoke with Mark B. Solomon, DC Velocity's executive editor-news, about the problems facing workers who feel they have no voice, how the Teamsters want to move the needle on the all-important issue of worker classification, and the supply chain becoming the union's top organizing priority.
Q: What is your message to persuade workers who have never been unionized and may never have thought about the value of union representation?
A: We listen to what workers say about their work. Their primary concerns are not about wages and benefits. Their issues are with how they are treated, their employer's lack of respect for them, unilateral changes imposed on them, and general unfairness in the workplace. Simply put, their voices are not being heard. Our message is simple: To have a real voice on the job, workers need to stand together, form their union, and win the right to sit across from their employer and bargain collectively. The only way workers can have effective input on the issues that affect their work lives is to win the right to bargain a union contract—which guarantees those wages, benefits, and conditions.
Most workers intuitively understand that with strong Teamster representation backing them, they can win improvements. We also know from research that, if given a free choice, a huge percentage of workers would choose union representation. Nevertheless, workers face real fear in exercising their rights: fear of retaliation from their boss, weak labor law protections, and the widespread use of union-busters. Our job is to give workers hope, confidence, and a plan to successfully fight back, to demonstrate that it can be done.
Q: The growth of e-commerce fulfillment has created job security for warehouse labor that has seen wages rise in the past two years at a faster rate than virtually any other U.S. occupation. How do you convince these workers, who finally have bargaining leverage given the industry's dynamics, that union representation is an asset?
A: This has not been our experience. If anything, there is less job security, less worker power in this industry. The e-commerce giants have incredibly high turnover with a relatively small permanent employee workforce, and they rely heavily on temporary help. Most of the workers who move the goods through these facilities are employed by third-party agencies and have no job security, few if any benefits, and absolutely no power. Also, much of the work is increasingly automated, displacing even more workers. These trends are being copied across the logistics industry by large and small players. We see it at most warehouses where we have been organizing. All of this poses enormous challenges for workers to organize.
Q: How do you figure out the logistics of organizing workers who are so dispersed, where you might have four workers at this location, five workers at that location, and so on?
A: This is what we do, what the job of organizing is. Our model relies on one-on-one conversations with workers and their families outside of their workplace, in addition to on the job. It is hard, but we have tools to help us figure out the logistics and track our progress. It has always been boots on the ground, with one-on-one communication to organize workers. In that regard, our current Teamster members—those working in the same industry as the workers we're trying to reach—can be the most effective advocates in describing the rights and benefits they have gained.
Q: What is the biggest challenge you expect to face as you expand your organizing efforts into areas that have been largely foreign to the Teamsters?
A: There are not too many areas foreign to the Teamsters. We pride ourselves on being one of the most diverse labor organizations in the world, having members that range from airline pilots to zookeepers. However, our organizing efforts these days are focused primarily on transportation and the global supply chain. Here, we are uniquely positioned to take advantage of our existing power in freight, warehousing, package delivery, ports, and air cargo down to the last leg of the product chain in waste management and recycling.
Again, the principal obstacle faced by workers is the lack of effective protections when they organize. Labor law has not kept pace with modern corporate practices of outsourcing, the misclassification of employees as "independent contractors," and other schemes to escape liability to workers and government.
Q: There have been several court rulings in the past couple of years that transport workers once classified as independent contractors were in reality company employees. This may become a pivotal issue because labor law bars independent contractors from forming a union. What is your strategy here?
A: We have taken this issue head-on. We are leading the way to challenge management's claims about independent contractors as part of our efforts to organize port drivers and local delivery drivers. As you said, the National Labor Relations Act (NLRA) doesn't allow truly independent contractors to form a union. So if the workers are independent, we can't organize them. But the scam practice of misclassifying workers who are not independent and have no control over their work has become widespread, and workers are starting to push back.
We are coming to the aid of workers who have been misclassified. Corporate-driven efforts to mislead workers, unions, governments, and communities by misclassifying huge segments of workers as independent contractors were hatched many years ago to limit liability for companies, to divert responsibility, and to ultimately push costs onto everyone else. Through the Teamsters' efforts, more people have become aware of the misclassification issue, and its truly sham nature is being exposed.
Q: Do you have any estimate on the size of the potential market?
A: The Bureau of Labor Statistics (BLS) in its 2016 report on union membership found that only 6.4 percent of the private-sector workforce is unionized. Obviously, there are millions of workers without the benefit of a voice at work. If our nation is to truly address the alarming decline of the middle class and to deal with the problem of income inequality, we must organize workers on a massive scale, and at an accelerated pace. This may sound like a pipe dream, but as we have seen, workers are increasingly fed up. They have had enough of working harder for less, having no say on the job, and facing an insecure future with no pension or retirement—and they are looking for a way out. There is tremendous potential to organize them into unions.
Q: You have targeted XPO Logistics Inc. largely because it touches so many parts of the supply chain. It has a significant union presence in Europe through its 2015 acquisition of French firm Norbert Dentressangle. There have been worker protests at various XPO-related events. Are you taking steps to combine organizing efforts with those of XPO's European unions, and what are the cultural and workplace challenges in doing so?
A: We have a very close relationship with our brother and sister unions overseas. We work with the International Transport Workers Federation and with individual unions in countries across Europe and in other parts of the world.
XPO operates in a global economy, where business is done at different levels of union density and labor relations. It is imperative that those of us who represent workers' interests have matching global reach. We have worked with our international allies for many years. Today, our relationships are more tightly knit than ever before. European union representatives joined us last year at XPO's annual shareholder meeting, and they made it clear that we are a family of unions that stand together with a common goal of winning dignity and respect for XPO workers.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.