Supply Chain News Roundup: Boeing Machinists End Strike
After nearly two months, Boeing machinists have agreed to a new contract. The four-year-deal includes 38 percent raises over the four years as well as a US$12,000 bonus for approving the contract.
The New York Times has called the strike “one of the country’s most financially damaging work stoppages in decades.” It began September 13; the contract was ratified Monday.
The International Association of Machinists and Aerospace Workers, which represents about 33,000 workers, many in Seattle, has reported that nearly 60 percent of those voting endorsed the contract.
In a statement, U.S. Congresswoman Pramila Jayapal said, “Boeing has a long history of building the middle class in Seattle, with generations of workers committed to their jobs and to the company. This contract is a promising sign that the new leadership is committed to returning to that role as a business that is contributing to our region, state and country’s well-being for current and future generations.”
Return to Office Policy at Starbucks
Starting in January, Starbucks’ corporate staff could face implications — perhaps even firing — if they don’t return to the office three days a week, as mandated by the company’s return-to-work policy, Bloomberg reported.
A memo was reportedly sent to impacted staff; it indicates greater enforcement of hybrid working policies, the article stated, “since Brian Niccol took over as chief executive officer. He told employees last month that they should work wherever they need to in order to get their jobs done, but that he thought that place was usually the office.”
In other Starbucks news, senior leadership has reinforced that inclusion is a critical at the company. An update from Mark Brown, Starbucks’ senior vice president of talent and inclusion, said that the company is close to reaching its 2025 goal of expanding “opportunities for everyone and meaningfully improve gender, racial and ethnic diversity among our U.S. partners.”
Currently, women make up 55 percent of the company’s U.S. corporate partners, while 72 percent of the company’s retail partners are women. “We also made progress on the racial and ethnic diversity of Starbucks in the U.S., with diverse partners now representing more than 51.9 percent of our retail team and more than 37.9 percent of our corporate roles,” Brown stated. Manufacturing teams have recorded less progress, meaning there is greater opportunity there, he said.
Hurricanes and Small Businesses
McKinsey & Company found that 1.9 million micro-, small and medium-size enterprises (MSME) in Florida were in Hurricane Milton’s pathway; that equates to 58 percent of the state’s MSME. MSME are businesses with fewer than 500 employees.
According to “Assessing the Impact of Hurricanes Helene and Milton on Small Businesses,” hurricanes and other strong storms can devastate small businesses. “Small businesses can help knit together the fabric of a community, and many people depend directly on such enterprises for their livelihoods,” the article said. “Potential knock-on effects from damage to small businesses could also create challenges that extend to the broader economy.”
In Florida, some of the most hit industries included health care, construction and professional services.
Hurricane Helene impacted many types of businesses in North Carolina, according to the article. “Helene’s sector-level impacts in North Carolina were relatively evenly distributed, affecting approximately 40 to 50 percent of the state’s MSME firms, employees and revenues across most sectors,” it said.
Hurricane Milton occurred in late September/early October, with Hurricane Helene striking two weeks earlier.
Gartner: AI Lags as a Priority in Europe
Investing in the supply chain technology? A new survey by research and consulting firm Gartner found that artificial intelligence (AI), including machine learning, and generative AI (gen AI) are the top digital supply chain investment priorities.
Not for Western Europe, however. There, connected industry objectives are the top priority.
While enthusiasm for both traditional AI and gen AI remain high on an absolute level within supply chain, the prioritization varies greatly between different roles, geographies and industries," Michael Dominy, vice president analyst in Gartner’s supply chain practice, said in a press release. “European respondents were more likely to prioritize technologies that align with Industry 4.0 objectives, such as smart manufacturing.”
Additionally, certain industries prioritize specific use cases, he said. These include more seemingly pragmatic investments like robotics or machine learning.