Teamsters Say No to Driverless Delivery

Teamsters Say No to Driverless Delivery

February 2, 2018

UPS and the Teamsters have opened contract negotiations.  Their last contract was signed in 2013, at the start of the online retail boom.

In light of the large growth in deliveries from online store like Amazon, UPS is looking to add flexibility in this contract to allow competition against other delivery organizations, and meet the increasing demands to speed up delivery of goods.

However, the Teamsters’ initial demands are to prohibit UPS from using drones or driverless trucks. Also, they want to eliminate deliveries after 9:00 pm (including the Christmas delivery season), and hire an additional 10,000 employees.  UPS has added approximately 40,000 employees over the last five years.

This post is based on the Fox Business article, Teamsters Tell UPS: No Drones or Driverless Trucks, by Paul Ziobro, January 24, 2018. 

Discussion Questions
1. Should UPS consider the demands of no drones and no driverless trucks in contract negotiations?

Guidance: Collective bargaining is a difficult process.  Unions typically want to protect their membership, and expand if possible the number of union jobs.  This is exactly what the Teamsters are demanding with these provisions.

Management always wants to provide as much flexibility Continue reading

Facebook
Twitter
Fiat Chrysler and the $1 Billion Upgrade

Fiat Chrysler and the $1 Billion Upgrade

January 29, 2018

In the latest announcement in its ongoing restructuring of US manufacturing, Fiat Chrysler will invest $1 billion to modernize its plant in Warren, Michigan.

The plant currently produces Ram 1500s. Production of the next version of the 1500 will shift to another plant, allowing the modernized Warren plant to manufacture two new Jeeps.

In 2020, Fiat Chrysler will also shift production of Ram Heavy Duty trucks to Warren from Saltillo, Mexico, resulting in a net increase of 2,500 jobs at the plant.

This post is based on the NY Times article, Fiat Chrysler to Spend $1 Billion to Modernize Michigan Plant, by Neal E. Boudette, January 11, 2018.

Discussion Questions
1. What is the trend for auto demand in the US?

Guidance: Two major trends include growing demand for larger, roomy vehicles instead of compact and midsize cars, and growing pressure from the government to bring foreign auto production back to the U.S.

2. What is Fiat Chrysler’s response to the trends above?

Guidance: The company will make more trucks and fewer cars, shifting production of sedans to light trucks at its Sterling Heights plant, retooling its existing Warren plant to focus on producing Jeeps and heavy duty Continue reading

Facebook
Twitter
Toyota, Mazda and Made in America

Toyota, Mazda and Made in America

January 26, 2018

Toyota and Mazda have chosen, and their choice is Alabama. The two car manufacturers will together build a $1.6 billion factory in Huntsville, Alabama.

Despite a forecast of declining new car sales in the U.S. from analysts, the Toyota-Mazda plant, opening in 2021, will provide 4,000 jobs, have a manufacturing capacity of 300,000 cars a year, and utilize 2,500 acres of land to accommodate suppliers of major components such as seats and dashboards.

In addition to creating an auto-manufacturing hub in the Deep South, the Toyota-Mazda plant will help stimulate the regional economy by attracting other businesses including home building, restaurants, stores, and service companies ranging from office cleaning to technology support.

This post is based on the NY Times article,Toyota and Mazda Choose Alabama for $1.6 Billion Car Plant, by Neal E. Boudette, January 10, 2018.

Discussion Questions
1. What are the reasons for Toyota and Mazda to choose Huntsville, Alabama, as the location for their auto manufacturing plant?

Guidance: Reasons include: proximity of Toyota’s existing engine plant and Corolla plants, proximity to suppliers, creating an auto-manufacturing hub, stimulating the local economy, government incentives, and pressure to produce more vehicles in the U.S.

2. What are Continue reading

Facebook
Twitter