>> WHAT WAS AT STAKE HERE,
SUPPLY CHAIN WORKING ABOUT THE
PRESIDENT TRYING THE TO BRING
DOWN GLOBAL INFLATION PRESSURES,
DOMESTIC INFLATION PRESSURES,
AND UNDERSTANDING THAT IF THIS
STRIKE HAPPENED TONIGHT WHICH
WOULD HAVE BEEN TONIGHT AT 12:00
IMPACTS ON THE AMERICAN ECONOMY.
MARIA: THAT WAS LABOR SECRETARY
MARTY WALSH IN SEPTEMBER,
EXPRESSING HOPE THERE WOULD NOT
BE A RAIL STRIKE.
FAST FORWARD TO THE NEXT TWO
MONTHS, A NATIONWIDE STRIKE IS
LOOMING AND IT COULD PUT THE
COUNTRY’S SUPPLY CHAIN INDUSTRY
AT RISK AHEAD OF THE WEEKEND’S
BLACK FRIDAY SHOPPING.
JOINING US NOW IS FORMER
LOGISTICS FOUNDER AT AND CEO,
ALLEN MARSHALL.
IT’S GREAT TO SEE YOU THIS
MORNING.
>> YOU TOO, MARIA.
MARIA: WE’RE TALKING ABOUT THE
POTENTIAL FOR THE STRIKE.
FOUR UNIONS REJECTED THE DEAL
THAT JOE BIDEN SAYS THAT HE
BROKERED.
WHAT IS YOUR THOUGHT ABOUT THE
RISK OF A STRIKE AND ITS IMPACT?
>> FROM A LOGISTICS STANDPOINT
AND FROM A RETAIL STANDPOINT IT
WOULD BE A DISASTER.
EVERYTHING THAT WE HAVE --
RECEIVE EVERY DAY COMES BY
TRAIN.
40% OF ALL OF THE PRODUCTS IN
AMERICA ARE ON A TRAIN.
SO EVERYTHING PEOPLE ARE WAITING
FOR, MANUFACTURERS ARE WAITING
FOR, IT’S ON A TRAIN.
IT CAN’T STOP FOR A DAY, CAN’T
STOP FOR AN HOUR, CAN’T STOP FOR
A WEEK.
SO IT’S NOT SOMETHING WE CAN
RECOVER FROM.
AFTER CO-I HAVE, THE SYSTEM --
AFTER COVID, THE SYSTEM -- IT’S
JUST CATCHING UP NOW.
IF WE’RE FIGHTING INFLATION,
170,000 BARRELS A DAY ARE ON A
TRAIN SO WE’RE RELEASING IT FROM
THE STRATEGIC RESERVES AND IT’S
GOING TO SIT ON A TRAIN.
I DON’T UNDERSTAND HOW WE COULD
BE IN THIS SITUATION TO.
MARIA: I THINK THE RAIL WORKERS
KNOW THIS.
I MEAN N, THEY ARE AWEAR OF THE
LEVERAGE THAT THEY HOLD, IT’S
NOT JUST THINGS THAT ARE GOING
CROSS COUNTRY IN TERMS OF
PRODUCTS BUT IT’S PERISHABLE
ITEMS, FOOD, NATURAL GAS.
SO I MEAN, RIGHT NOW WE SPOKE
WITH A NUMBER OF UNION HEADS.
THEY SAID ONE OF THE STICKING
POINTS IS SICK PAY.
THEY WANT TO BE ABLE TO GET PAID
FOR DAYS THAT THEY HAVE TO CALL
IN SICK.
WHAT IF HAD THEY GET COVID?
AND THAT’S NOT IN IT.
EVEN THOUGH THEY HAVE A 24%
RAISE IN THAT TENTATIVE
BLUEPRINT OF A DEAL, WHAT DO YOU
THINK ABOUT THOSE ITEMS IN THAT
DEAL?
IS THIS SOMETHING THAT YOU THINK
WOULD STICK, 24% RAISE WITH NO
SICK PAY OR OF DO YOU THINK THAT
THE UNION -- THE RAIL MANAGERS
ARE GOING TO CAVE?
>> I THINK’S GOING TO BE DONE.
-- I THINK SOMETHING’S GOING TO
BE DONE.
EVERYONE IS LOOKING FOR MORE
MONEY TO KEEP UP WITH INFLATION
SO YOU’RE IN THIS CYCLE OF
HAVING TO GET MORE MONEY TO PAY
MORE MONEY.
I DON’T KNOW HOW IT ENDS.
CERTAINLY THE STRIKE DOESN’T
HELP IT.
NO ONE KNOWS WHAT THEY’RE
ACTUALLY GOING TO AGREE TO.
HOPEFULLY THE GROWN UPS IN THE
ROOM AND THE ADMINISTRATION CAN
ACTUALLY JUST ACT RESPONSIBLY
AND TRY TO GET THIS SETTLED.
EVEN HAVING IT ON THE NEWS IS
NOT HELPFUL FOR US TODAY.
IT’S NOT HELPFUL FOR RETAILERS.
HOW DO YOU PLAN?
HOW DO YOU PLAN FOR SOMETHING
LIKE THIS?
MARIA: THAT’S WHY PRESIDENT
BIDEN TRIED TO ACT LIKE THERE
WAS SOME BIG TENTATIVE AGREEMENT
AND HE GAVE A BIG PRESS
CONFERENCE ABOUT IT IN COAPT
RIGHT BEFORE THE MIDTERM
ELECTIONS.
HE DIDN’T WANT ANY WORD ABOUT
THIS, HE DIDN’T WANT ANY
DISCUSSION ABOUT THIS BEFORE THE
MIDTERM ELECTIONS BUT LET ME GET
YOUR TAKE ON WHAT THE IMPACT OF
A STRIKE WOULD BE ON OTHER
UNIONS.
ALLEN, IF YOU SEE THAT OTHER
UNIONS ARE RECOGNIZING THAT THIS
UNION, THE RAIL UNION’S GETTING
24% RAISE, DO YOU EXPECT THAT TO
BEGET MORE STRIKES?
>> BAD BEHAVIOR PROMOTES MORE
BAD BEHAVIOR, CORRECT?
IF THEY’RE ABLE TO LEVERAGE THE
U.S. ECONOMY AS -- THE U.S.
ECONOMY CAN’T BE USED AS A
NEGOTIATING TOOL.
IT HAPPENS ENOUGH IN WALL
STREET, YOU KNOW, WITH THE DEBT
CEILING AND ALL THE OTHER THINGS
THE POLITICIANS DO.
WE CAN’T BE HAVING THE
GOVERNMENT TRYING TO -- YOU
KNOW, BEING HELD HOSTAGE.
WE CAN’T HAVE THE LARGEST
COMPANIES IN THE WORLD BEING
HELD HOSTAGE.
THERE’S GOT TO BE A COMMON SENSE
THAT COMES INTO PLACE SOONER OR
LATER.
MARIA: REAL QUICK BEFORE YOU
GO, TELL ME ABOUT YOU-PICKSY AND
ALL THIS INVENTORY.
RETAILERS HAVE STOPPED BUYING
MORE BECAUSE THEY HAVE AN
INVENTORY HANGOVER RIGHT NOW,
RIGHT?
>> YEAH, THERE’S -- EVERYONE
PLANS SIX MONTHS OUT.
THEY’RE PLANNING ALL OF THESE
INVENTORIES FOR A GREAT SEASON
AND THE FED PUT THE BRAKES ON
THE ECONOMY.
SMALL PERCENTAGES MAKE A BIG
DIFFERENCE TO RETAILERS.
U-PICKSY, WE FORESAW THIS AND WE
KEEP OUR INVENTORY REALLY LIGHT
AND WE’RE IN A LITTLE DIFFERENT
SITUATION.
WE DON’T HAVE TO STOCK AS MUCH
AS EVERYONE ELSE DOES.
AS A GROWING COMPANY WE HAVE
MORE ROOM FOR MANEUVERING THAN
THE LARGE COMPANIES.
FOR THEM, I DON’T KNOW WHAT
THEY’LL DO WITH OVERSTOCK.
HOPE ANIES PASS ON THOSE SALES
OR BIG SALES FOR RETAILERS, I
MEAN FROM THE RETAILERS TO THE
CONSUMERS AND GIVE THEM A BREAK.
MARIA: CONGRATS ON THAT, ON
YOUR TIME AND INNOVATION.
GOOD TO SEE YOU.
THANKS VERY MUCH.
ALLEN MARSHALL JOINING US THIS
MORNING.
>> THANK YOU.