Industry analysts said the potential for a strike by UPS workers if a new labor agreement isn’t reached with the International Brotherhood of Teamsters holds significant implications across the supply chain. The contract for 340,000 unionized UPS workers expires July 31, and the Teamsters have said members will not work under a contract extension. Talks are at a standstill. On a daily basis, UPS moves an estimated 25 million parcels, which accounts for 6% of the nation’s gross domestic product. 

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The U.S. government reported July 6 that the country added 209,000 jobs in June, a sign that the economy’s resilience is confounding the Federal Reserve’s drive to slow growth and inflation. There was no significant change in truck transportation jobs from May to June. The June hiring figure is the smallest in 2 1/2 years but is still a sign of economic strength, and makes it all but certain that the Fed will resume its interest rate hikes later this month after having ended a streak of 10 rate increases intended to slow inflation in mid-June.

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The California Air Resources Board and the Truck and Engine Manufacturers Association have come to an agreement regarding the state’s planned phasing out of diesel-emitting big rigs. As part of the pact, CARB agreed to relax current nitrogen oxide pollution regulations to align with federal standards. Manufacturers were also promised more time to meet new requirements and additional protections for legacy engines. These assurances were made on the condition that manufacturers would eventually satisfy the state’s zero-emission vehicle targets and air pollution curbs. 

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Face-to-face negotiations on a new labor deal between UPS Inc. and the International Brotherhood of Teamsters stalled July 5 after showing promise over the weekend, renewing concern that workers represented by the union could strike at the end of the month if a final agreement is not reached. “We have nearly a month left to negotiate. We have not walked away, and the union has a responsibility to remain at the table,” UPS said in a statement. The union said in a tweet that it was the parcel carrier that had left the negotiating table. The latest breakdown in talks is probably over pay. UPS has a tier of drivers who earn a lower hourly wage and receive fewer benefits than full-time drivers. The union has vowed since the tier was implemented in 2018 to remove it in the next contract cycle.

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An 18-state coalition is backing the Environmental Protection Agency in a legal action asking for rejection of a challenge by 19 states that contend California’s future strict emission controls will negatively impact the trucking industry. California Gov. Gavin Newsom announced with other state officials the June 28 filing in the U.S. District Court of Appeals in the District of Columbia. The legal maneuver is intended  to counter lawsuits against EPA for authorizing its regulations to speed adoption of California’s zero-emission laws for medium- and heavy-duty trucks.

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Senior transportation policymakers are calling for passage of several big-picture supply chain-centric bills with the congressional August recess approaching. A bill recently introduced in the Senate meant to improve freight rail connectivity is the latest in this series of measures awaiting consideration in Congress. The Reliable Rail Service Act, sponsored by Tammy Baldwin, a Wisconsin Democrat, and Roger Marshall, a Kansas Republican, would pursue certain updates to operations at the Surface Transportation Board. Doing so, the sponsors insisted, would promote reliability across the freight rail network.

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Legislation that would reauthorize the Diesel Emissions Reduction Act through fiscal 2029 was recently introduced in the Senate. Tom Carper (D-Del.), chairman of the Environment and Public Works Committee, is the bill’s lead sponsor. He explained the legislation is designed to promote health benefits by improving air quality nationwide. Administered by the U.S. Environmental Protection Agency, the DERA program is backed by federal grants. “Since its implementation in 2005, the Diesel Emissions Reduction Act has been one of our nation’s most cost-effective tools for reducing diesel emissions,” Carper said June 22.

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Pennsylvania Motor Truck Association and four trucking company members are suing two commonwealth agencies over the automatic adoption of California heavy-truck emission standards, contending only their legislators can create state laws. PMTA President Rebecca Oyler said, “The trucking industry and PMTA members in Pennsylvania have no control over — or even input into — these regulations because they’re from California. The cost increases our members are facing will make it difficult for them to upgrade to new, cleaner trucks.”

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The Federal Motor Carrier Safety Administration is seeking approval from the Office of Management and Budget to conduct a human-factors study that will examine driver behavior in commercial motor vehicles equipped with L-2 advanced driver-assistance systems and L-3 automated driving systems.

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Volvo Trucks North America is working with the University of Minnesota and two fleet owners on extreme weather testing of the manufacturer’s Class 8 VNR Electric model to analyze the impact of ambient temperature on battery life, the company said June 22. Murphy Logistics Solutions will test the battery-electric trucks in Minnesota in cold winter temperatures, and H-E-B Grocery Co. in Texas will do the same in periods of intense summer heat, Volvo said.

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