Global Logistics and Supply Chain Strategies - June 2008 - (Page 48) Election 2008 and How It Will Impact Your Supply Chain Business Benjamin Gordon of BG Strategic Advisors LLC Depending on who is elected president in November, big changes in labor relations, taxation and free-trade legislation may be in store for the logistics and supply chain industry. In 2008, the nation will elect a new president. The three remaining candidates—Senators Barack Obama (D-IL), Hillary Clinton (D-NY), and John McCain (R-AZ)—each represent dramatically different scenarios for the logistics sector. The outcome of the election has implications for the supply chain sector that companies and managers should prepare for and perhaps find opportunities that can be pursued. While the countless debates, interviews and analyses in the national media have covered many of their differences, little has been brought out about their views and likely impacts on logistics and supply chain topics. Benjamin Gordon, managing director of Palm Beach, Fla.-based BG Strategic Advisors LLC, is a well-known industry voice who has led the most active investment bank for the supply chain and logistics sector for nearly a decade. He has reviewed the candidates’ records and has reached a few conclusions about how each candidate might act on a variety of important issues. proposed Employee Free Choice Act, employees could be pressured to vote for unionization via public election, not private ballot. Hence, if a majority of employees were to vote for union representation through what is called Card Check, the National Labor Relations Board (NLRB) would be required to recognize the union. In the Card Check process, all the union needs to do is gather a list of employees declaring their support. If the list reaches a majority, the company can be forced to go union. The implications are dramatic. Post-Card Check, employers could lose the right to request an election or respond by educating their workforce on the pros and cons of unionization. Many non-union companies fear that Card Check will put their companies at much greater risk of union drives. On Card Check, the presidential candidates split on party lines. Democratic Senators Hillary Clinton and Barack Obama have both expressed their commitment to passing the Employee Free Choice Act legislation. Conversely, Republican Senator John McCain co-sponsored the opposing Secret Ballot Protection Act. With a Democratic Congress, a Democratic Senate, and polling showing a lead for the Democratic Presidential candidates, it appears very possible that we will see a Card Check bill pass. Q: Which logistics issues are actually going to be impacted by any of these candidates? Gordon: There is a long list, but the most important would include a new unionization drive, dramatically increased cargo screening, the growing cost of compliance, threats to NAFTA and free trade, and the likelihood of tax hikes. Q: How do you see unionization in the logistics industry being influenced by the leading candidates? Gordon:Congress has been considering a littleknown bill that could have enormous implications for supply chain companies. This bill could actually be enacted after the presidential election. The Employee Free Choice Act could enable unions to mount drives via a new tool: the public vote. Historically, employees voted for or against a union via secret ballots. However, under the recently48 JUNE 2008 Q: You mentioned cargo inspection. Ever since 9/11 there has been increasing pressure at the Federal level to do 100 percent cargo screening, and a law has been passed that could allow this action. Do you think this is likely to happen, and what would the cost of compliance be for the industry? Gordon: The Department of Homeland Security has been pursuing initiatives to create 100 percent cargo screening, but sometimes with little regard for how to implement or pay for it. The burden is likely to fall on freight forwarding, customs brokerage, and international logistics providers. As you allude, one recent development is the
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.