Looming dockworkers strike could cripple supply chain
Some of the busiest ports in the country could be all but shut down come Tuesday, Oct. 1, as dockworkers up and down the U.S.’ Atlantic and Gulf Coasts prepare to strike. A shutdown could cause shortages and potentially price increases throughout the country right as the holiday shopping season gears up.
The International Longshoremen’s Association is calling for significantly higher wages and a total ban on automation. If they can’t come to an agreement with the United States Maritime Alliance by the end of Monday, Sept. 30, some 85,000 workers are prepared to walk off the job.
An automation ban would impact cranes, gates and container-moving trucks that are used in the loading or unloading of freight at 36 ports. Those ports handle about half of all U.S. cargo from ships.
The ILA and the Maritime Alliance last held negotiation talks in June, but nothing was accomplished then or has been since.
One analysis by J.P. Morgan said a strike would cost the U.S. economy up to $5 billion per day.
President Joe Biden could use a federal labor law to force the longshoremen back to work, but on Sunday, Sept. 29, he said he was not considering that. However, the White House and top government officials have urged the ILA and the Maritime Alliance to come to an agreement.
If the strike does happen, it’ll mark the first time in almost 50 years all the ILA ports along the East and Gulf Coasts have shut down at the same time.
Americans lose confidence college is worth it, skilled trades on the rise
As more Americans lose confidence that a college degree is actually worth it, a new study points to some potentially good news for the post-secondary schools. The number of high school graduates who chose to enroll in college held steady from 2022 to 2023, and both years were a big improvement over enrollment numbers during the COVID-19 pandemic in 2020 and 2021.
Still, four years after the pandemic began, there are 900,000 fewer undergraduate students enrolling in college. College costs continue to rise and not wanting to accrue student loan debt has many high schoolers looking at other plans for after they graduate.
A separate recent study found nearly half (49%) of high schoolers believe a high school diploma, trade program, two-year degree or other type of enrichment program is the highest level of education needed for their anticipated career path. And even those planning on going to college believe on-the-job training and experience is more beneficial than getting a higher education degree, with 56% of them saying so.
A third study found a majority of those with student loan debt said their degree wasn’t worth it. While more than half (53%) said knowing they’d have to take on debt has stopped them from pursuing more education.
The Department of Labor says in the decade from 2012 to 2121, the number of registered apprentices jumped 64%. Just between 2022 and 2023 enrollment in vocational programs spiked 16%.
The Department of Education also found those who go to trade schools are more likely to find a job after going to school than those who take the traditional college route and are more likely to actually work in their field of study.
It’s also worth noting more and more Americans think two-year post-secondary schools are a better bang for your buck. In a recent Gallup survey, more than half (55%) said a degree from a two-year school is worth it while 18% believed the same thing about four-year colleges.
According to multiple reports, Biden plans to block the $15 billion deal between Japan’s Nippon Steel and U.S. Steel on the grounds of national security. This would be an unprecedented move with such a close U.S. ally.
Presidents have used this path to previously block foreign transactions on national security risks eight times in history. Seven of those were from Chinese companies and an eighth was a Singaporean company with close ties to China and China’s Huawei. Blocking the Nippon Steel-U.S. Steel sale would make the ninth such block in history.
The stock price for U.S. Steel plunged around 20% late Wednesday, Aug. 4, when reports first came out about Biden’s supposed plans. At the same time, the company was wrapping up a rally in downtown Pittsburgh in support of the Nippon deal.
“It is time to put politics aside and do what’s right for you and all of the other steelworkers in Pennsylvania. So let’s make sure that we protect our jobs, we protect our communities and our future. Let’s close this deal,” said Scott Buckiso, a senior vice president at U.S. Steel.
U.S. Steel said without the transaction, the company “will largely pivot away from its blast furnace facilities, putting thousands of good-paying union jobs at risk… and depriving the American steel industry of an opportunity to better compete on the global stage.”
However, the United Steelworkers union has pushed back against the transaction, accusing Nippon Steel of sidestepping engagement with union workers.
U.S. Steel is headquartered in Pittsburgh, Pennsylvania, where politicians are courting Pennsylvania voters, a critical battleground state in the upcoming election. United Steelworkers endorsed Kamala Harris for president, just as it did Joe Biden earlier this year, days after he came out against the Nippon Steel purchase.
On Thursday, Aug. 5, Japanese minister and prime ministerial candidate Taro Kono said, “Perhaps it is the presidential election and everyone wants the labor union vote, but I would hope that the market will not be distorted by such a situation.”
This past weekend, the Biden administration warned Nippon Steel in a letter that the U.S. Steel acquisition would pose a national security risk, according to exclusive reporting by Reuters. The Committee on Foreign Investments in the United States, which is investigating the deal, said it would “damage American steel production and decrease the likelihood that U.S. Steel would continue to aggressively seek trade remedies,” Reuters reports.
“I personally remain extremely engaged in trade matters today, and Nippon steel plans it to continue just that way, as we always have done,” said Rob Kopf, vice president of sales at U.S. Steel. “[Nippon Steel is] committing massive dollars to this country and to this company, and we cannot afford to let the countries who have utter disregard for fair trade, like China, who try to export their own economic woes and their unemployment problems to the United States, to wipe out U.S. Steel here in the USA.”
The companies at the center of the deal accuse the U.S. of acting not in fact but on the basis of politics.
President Biden first publicly opposed the deal in March, arguing U.S. Steel should remain American-owned, a sentiment shared by Harris and Trump. J.P. Morgan, Andrew Carnegie and Charles Schwab formed the company back in 1901. Under law, the president can only block the transaction after receiving the committee’s final report on national security risks.
Georgia school shooting suspect was questioned over online threats: FBI
We have new details about the suspect and the victims in the deadly shooting at a Georgia high school. And Boeing’s troubled Starliner spacecraft is set to begin its trip back to Earth without its crew. These stories and more highlight The Morning Rundown for Thursday, Sept. 5, 2024.
FBI: Suspect in Georgia school shooting was questioned over online threats
Authorities have released more details about the shooter who opened fire in a Georgia high school on Wednesday, Sept. 4. Two teachers and two students were killed, and nine others were wounded.
Just before 10:30 a.m. ET Wednesday, gunfire was reported at Apalachee High School in a small town about 45 miles from Atlanta. A sheriff’s deputy working as a school resource officer engaged with the shooter, who has been identified as Colt Gray, and the teen immediately surrendered.
Officials said Gray will be charged with murder and tried as an adult.
The victims were two 14-year-old students, a 53-year-old math teacher, and a second math teacher, a 39-year-old who also coached as the defensive coordinator for the school’s football team, according to the school’s website.
The school will remain closed for the remainder of the week and crisis counselors are on school campus as students grapple with the tragedy they have now experienced.
“I was listening, and you can hear gunshots just ringing out through the school and you’re just wondering which one of those is going to be somebody that you’re best friends with or somebody that you love,” said Landon Culver, a junior at the school. “You hear about this kind of stuff and you never think it’s going to happen to you until it’s happening. And then once you’re in that, it’s like this really happened. It’s like a surreal experience.”
Authorities said Gray, then 13, was a possible suspect in connection with threats made online last year using photos of guns and threatening to shoot up a school. They said he denied making the threats and there was no probable cause to arrest him, however, local schools were told to “continue monitoring the suspect.”
Gray’s father was also interviewed a year ago over the online threats. Investigators said his father told them he had hunting guns inside the home, but his son did not have unsupervised access to them.
Trump holds town hall in PA; Harris talks economy in NH
During the interview, Trump highlighted Harris’ stance on fracking, saying in 2019 she would ban it if elected but she would not ban it now.
Trump was in Pennsylvania and kept much of the focus on the battleground state. Hannity asked Trump how the 2024 election differs from the election he won in 2016.
“It’s not that different,” Trump said. “It’s still about the forgotten man and forgotten woman. People are being treated horribly in the country. We’re a country that’s being laughed at all over the world. It’s very simple and it starts with make America great again, that’s what we have to do.”
Meanwhile, Harris was in New Hampshire discussing more of her tax plan if elected in November.
“My plan will make our tax code more fair while also prioritizing investment and innovation,” Harris said. “So let us be clear: billionaires and big corporations must pay their fair share in taxes.”
Harris is proposing an increase to the long-term capital gains tax rate but not as high as what was in President Joe Biden’s reelection agenda. Harris said she wants to raise the tax rate to 28% from its current 20% rate. Biden had called for a 39.6% tax rate.
Trump is looking to cut the corporate tax rate to 15% if elected for a second term.
Trump, Harris agree on rules for debate
There’s less than a week now until the first debate between Trump and Harris and they’ve now agreed on the rules. The debate, hosted by ABC, will be moderated by World News Tonight anchor David Muir and ABC News anchor Linsey Davis.
Trump won a virtual coin flip held on Tuesday, Sept. 4, and chose to make the last closing statement. They’ll get two minutes each.
Each candidate will also get two minutes to answer each question with a two-minute rebuttal and one additional minute for a follow-up, clarification, or response.
Because Trump got to choose the closing statement order, Harris chose the podium placement. She’ll be at the right podium on the screen.
CPSC wants to investigate Shein and Temu kids’ products
They want the commission to investigate how the websites comply with U.S. safety laws, citing “recent media reports” that dangerous products meant for kids are easy to find on both sites.
This is just the latest probe into the companies, both of which have been under scrutiny for how they’re able to sell things for such low prices and how much environmental waste they create, as well as concerns over the potential use of forced labor.
Boeing’s Starliner to return to Earth empty on Friday
The return will mark the final phase of a test flight that did not go as planned.
Starliner’s first crewed trip to space was supposed to prove Boeing could reliably bring astronauts to and from the International Space Station so NASA could certify it to do so.
But issues that popped up just after launch have left astronauts Butch Wilmore and Suni Williams stuck on the space station since June. Their mission was only supposed to last about a week.
The game will start a weekend of football action, including the first NFL game to be played in Brazil when the Philadelphia Eagles meet the Green Bay Packers Friday night. That game will be a streaming exclusive available only on Peacock.
Then the first Sunday of the NFL calendar, Sept. 8, will see 13 games played, with another first: Buffalo Bills safety Damar Hamlin will be starting during the team’s game against the Arizona Cardinals. This will be Hamlin’s first start since suffering a cardiac arrest on the field in January 2023.
Electronics made with Chinese forced labor attempt to enter the US from India
U.S. Customs and Border Protection officials have detained nearly $43 million worth of electronic equipment shipments from India since October, suspecting they may have been manufactured with components linked to forced labor in China. The detained shipments have raised concerns that India may be attempting to circumvent U.S. tariffs and trade restrictions by exporting products that include components derived from illegal labor practices.
These seizures fall under the 2022 Uyghur Forced Labor Prevention Act (UFLPA), which aims to block goods produced in China’s Xinjiang region from entering the U.S.
The Xinjiang region has come under international scrutiny due to reports that Chinese authorities have established labor camps for ethnic Uyghur and other Muslim groups.
While the specific nature of the confiscated goods has not yet been disclosed, solar panel components are considered a high-priority area under the UFLPA.
Experts say the seized goods likely include raw materials used for solar tech that were first sourced from Xinjiang before being manufactured in India, a practice which may have been occurring for some time now.
India has seen a recent surge in solar panel exports to the U.S., with shipments rising to 11% of total U.S. solar panel imports in the second quarter of this year. This marks a significant increase from the previous quarter, where India’s share stood at just over 5%.
Australians gain the ‘right to disconnect’ under a new law over workers’ rights
Starting Monday, Aug. 26, Australians will gain the right to be left alone after office hours. That comes thanks to a new law passed earlier this year.
The legislation, passed in February, protects employees who choose not to monitor, read or respond to any contact from their employers after hours. It essentially enshrines the “right to disconnect,” allowing workers to switch off after a day at work.
Employers could face fines up to $18,000 if found in violation. Employees can’t be disciplined or fired for refusing contact outside of their designated working hours.
Similar laws are already in place across parts of Europe, including France, Germany and Belgium. The new rules aim to help Australians find a better work-life balance. That’s something that has become increasingly important for people with family and caregiving responsibilities.
There has been some pushback, particularly from the employer side. They’ve criticized the legislation for being rushed and flawed. However, the law does include provisions for some exceptions.
Australian officials recommend employees check out the Department of Employment and Workplace Relations’ fact sheet, and other materials that provide a clearer understanding of how the new rules apply to different situations.
Looming Canadian rail shutdown could impact US supply chain
A breakdown in negotiations between two of Canada’s largest railroads could result in supply chain issues for the U.S. Both the Canadian National Railway and Canadian Pacific Kansas City (CPKC) say that unless a deal is reached with the Teamsters union representing nearly 10,000 workers, those workers will be locked out starting early Thursday, Aug. 22.
The railroads are already starting to shut down their shipping networks in preparation. On Tuesday, Aug. 20, the CPKC will stop all shipments originating in Canada and all shipments from the U.S. that are headed for Canada. Canadian media outlets reported on Friday, Aug. 16, that Canadian National has already stopped container imports from U.S. partner railroads.
It would mark the first time Canada has faced a simultaneous labor stoppage at both the railroads. Normally, they negotiate their labor agreements in alternate years.
The two railroads handle about 40,000 carloads of freight worth about $1 billion. One industrial analyst said shipments of fully built automobiles and auto parts, chemicals, forestry products and agricultural goods would be hit hard.
The Teamsters union said Canadian National wants to implement a forced relocation provision which means workers could be ordered to move across Canada for months at a time to fill labor shortages.
The dispute with Canadian Pacific centers on safety issues, with the Teamsters arguing the company wants to force crews to stay awake longer, increasing the risk of accidents.
Negotiations have been ongoing since November of last year and contracts expired at the end of 2023. They were, however, extended as talks continued. The union said demands from the company concerning crew scheduling, rail safety and worker fatigue are the main sticking points.
Inflation in July falls below 3% for first time since March 2021
Consumer price inflation rose slightly in July, in line with expectations. July’s 2.9% annual rise came in a tick below the 3% expected, clearing the way for the Federal Reserve to wait until September to take action after the month’s troubling jobs report.
The Bureau of Labor Statistics numbers out Wednesday morning, Aug. 14, rose 0.2% compared to June’s 0.1% monthly decline. July’s 2.9% annual rise is slightly down from June’s 3.0% pace.
Core inflation, which measures price increases without volatile food and energy, rose 3.2% year-over-year and 0.2% from June.
The annual increase in headline CPI was the slowest increase since March 2021.
Shelter rose 0.4% from June, which the BLS said accounted for nearly 90% of the monthly increase in the all-items index.
The cost of used cars and trucks fell 10.9% compared to July of last year and down 2.3% from June. Energy prices were mostly stable month to month and up 1.1% for the year.
The price of groceries is up just 0.1% for the month and 1.1% compared to July of last year.
Central bankers will meet for the Jackson Hole Symposium set for Aug. 22-24. While policy won’t be changed at the meeting, analysts will be looking for signals on whether the Fed will cut rates by 25 basis points or 50 basis points in September, if at all.
Walz defends his military record at first solo campaign event
Gov. Tim Walz (D-MN) defends his military record in his first solo campaign event since being named Vice President Kamala Harris’ running mate. And an emergency declaration is approved for Puerto Rico as Tropical Storm Ernesto churns through the Caribbean. These stories and more highlight The Morning Rundown for Wednesday, August 14, 2024.
Walz defends his military record at first solo campaign event
With just 83 days left until the 2024 election, Vice President Kamala Harris’ running mate, Minnesota Gov. Tim Walz, held his first solo campaign event on Tuesday, Aug. 13, speaking at the American Federation of State, County and Municipal Employees convention in Los Angeles. During his speech, he addressed his 24-year military record, which has become one of the top controversies for the Democratic ticket.
Republican vice presidential pick Ohio Sen. JD Vance has accused Walz of “stolen valor,” criticizing Walz over remarks he made in 2018 saying he carried weapons in war, even though he never saw combat. The Harris campaign has clarified Walz “misspoke” when he said that.
“I just want to say I’m proud to have served my country and I always will be,” Walz said. “I firmly believe you should never denigrate a person’s service record. To anyone brave enough to put on that uniform for our great country, including my opponent, I just have a few simple words: thank you for your service and sacrifice.”
Walz served in the United States National Guard. Vance is a former Marine.
Walz will be taking part in a five-state fundraising blitz over the next several days, while Vance will be in Michigan on Wednesday, Aug. 14, and Pennsylvania on Thursday, Aug. 15.
According to the UAW, Trump and Musk advocated for firing workers who strike. Striking is a protected activity under the National Labor Relations Act and workers cannot legally be fired for it.
Recently, the UAW has been trying to organize Tesla employees and it has endorsed Vice President Harris in the 2024 presidential race.
The newly approved arms sale to Israel will include 50 fighter jets, air-to-air missiles, tank ammunition and tactical vehicles. The sale, however, isn’t expected to make an immediate difference in the current conflict. It’s unlikely these weapons will be delivered until 2026 at the earliest.
Meanwhile, Hamas’ new leader says it won’t be attending a planned meeting in Qatar for ongoing cease-fire talks on Thursday, Aug. 15.
President Biden and European leaders have been pushing both sides to return to the negotiating table as Iran has doubled down on threats to attack Israel. President Biden told reporters Tuesday a cease-fire deal could prevent a broader war from breaking out in the Middle East.
Hamas’ refusal to take part in negotiations signals any compromise is still far off.
Japanese prime minister won’t seek reelection amid political scandals
Japanese Prime Minister Fumio Kishida said he will not run for a second term to lead the long-ruling Liberal Democratic Party. Instead, he will step down next month after scandal, public dissatisfaction, and rising living costs have riddled his three-year term.
In recent months, the LDP has been in the middle of one of Japan’s biggest political scandals in decades. Two of the most influential factions in the LDP are accused of failing to properly declare their income and expenditures and rerouting political funds to lawmakers as kickbacks.
Puerto Rico under state of emergency ahead of Ernesto
Puerto Rico is under a state of emergency as Tropical Storm Ernesto churns its way. It’s expected to become a hurricane at some point Wednesday morning, unleashing flooding rainfall and heavy winds that could be a massive blow to the island’s struggling power infrastructure.
The National Hurricane Center said the storm could become a major hurricane “in a couple of days.”
This comes only days after Debby finished its deadly and destructive trek along the United States’ east coast. Ernesto is the fifth named storm of the Atlantic hurricane season.
Google unveils new lineup of AI-powered phones
The next generation of the phone wars is here and it’s all about artificial intelligence. On Tuesday, Aug. 13, Google unveiled its latest lineup of pixel phones at its annual showcase.
The yearly event was held a bit earlier than usual this year as Google looks to be one step ahead of Apple when it comes to AI. While we wait for Apple to reveal its next-gen iPhones in September, Google showcased its Pixel 9 lineup — four new phones complete with AI capabilities using its Gemini technology.
New AI functions include a voice conversation feature and a magic editor that can add a person to a photo who wasn’t in the original.
Google’s new phones are available now to preorder. Two are being released on August 22 and the other two on September 4, with the least expensive pixel costing $800 and the most expensive selling for $1,800.
Trump, Harris agree on eliminating tip taxes; economists raise red flag
Democratic presidential nominee Vice President Kamala Harris and Republican candidate former President Donald Trump agree on at least one thing: they both want to eliminate taxes on tips. While that sounds great to many workers who benefit from tips, financial experts say it could actually end up costing billions.
According to the public media outlet Marketplace, 2.5% of the U.S. labor force earns money from tips, but 1 in 3 make an income so low, it’s already not taxed.
Here’s where the issue arises. Let’s say two people work at a restaurant, but Person A is a hostess and Person B is a server. Both make about $30,000 a year, however, for Person B, a chunk of that comes from tips, while it doesn’t for Person A.
That means come tax time, Person A is stuck paying more in taxes than Person B even though they make the same amount of money.
The federal minimum wage for tipped workers is $2.13 per hour, but workers must make at least the federal hourly minimum wage of $7.25 once tips are included or their employers must cover the difference. Many states and municipalities have higher minimum wages and minimum tipped wages than the federal standard, while some states have eliminated lower minimum wages for tipped workers altogether.
The Tax Foundation, a research think tank, estimates eliminating taxes on tips could actually end up costing more than $100 billion in tax revenue over the span of 10 years.
And depending on how the tax cut is structured, economists on both sides of the aisle warn that the loss could pile onto federal deficit, negatively impact Social Security and Medicare, and open a loophole for high-end earners like financiers to recategorize their income to shield it from taxes.