MTA, MABA warn vaccine mandates will send truck drivers out of the labor force

Michigan Trucking Association, Michigan Agri-Business Association warn pending vaccine mandates threaten rural economic growth, cross-border trade

LANSING, Mich. (Nov. 4, 2021) In a letter to Michigan’s Congressional delegation, the Michigan Agri-Business Association (MABA) and Michigan Trucking Association (MTA) today warned of a growing nationwide truck driver shortage, and cautioned two pending vaccine mandates from the federal government risk sending drivers out of the labor force.

The U.S. Department of Homeland Security (DHS) plans to require COVID-19 vaccination for certain essential workers entering the U.S. at land borders beginning in January. In addition, the U.S. Department of Labor plans to mandate private businesses to require a COVID-19 vaccine or weekly testing among their workers.

“Keeping truck drivers on the job is absolutely critical as our nation faces a historic supply chain crisis,” said Brian Hitchcock, chairman of the Michigan Trucking Association. “Many truck drivers are vaccinated against COVID-19, but many are not. The reality is new vaccine mandates will lead to Michigan-based truck drivers leaving the labor force, or refusing work that requires travel to Canada, our number-one trading partner.”

DHS has announced that beginning in early January 2022, foreign national travelers crossing into the U.S. at land points of entry – including essential workers such as truckers – must be fully vaccinated against COVID-19. This requirement goes beyond standards the Government of Canada has established for truck drivers entering Canada.

MABA and MTA warned the DHS proposal would almost certainly result in a reciprocal policy for truck drivers entering Canada. Many Michigan-based truck drivers would refuse to make international deliveries as a result, hampering Michigan’s top export corridor.

“Our association continues to strongly promote voluntary vaccination against COVID-19, but the fact is vaccine mandates will send truck drivers out of the workforce during a historic supply chain crisis,” said Lippstreu. “We need federal policies in place that help keep truck drivers on the job, supporting Michigan agriculture and growing agricultural exports – including to Canada, our top export destination.”

In addition to the proposed border requirement, MTA and MABA said many businesses remain concerned about the potential impact of the U.S. Department of Labor’s (DOL) emergency standard requiring companies with 100 or more employees to vaccinate their workers. MABA previously detailed these concerns to the White House Office of Management and Budget in a comment submitted last month.

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Outreach to White House on Private Sector Vaccine Mandate

October 26, 2021 MABA recently sent a letter to the White House Office of Management and Budget (OMB) summarizing the problems that would be created by a new private-sector vaccine mandate.

An administration proposal under review at OMB would require any employer with 100 or more employees to ensure their workers are vaccinated against COVID-19 or tested weekly. In addition to the letter, we reviewed concerns with this proposal on a call with staff from OMB, the U.S. Department of Labor and the U.S. Small Business Administration this afternoon. The letter from MABA is available here.

We continue to encourage vaccination against COVID-19 on a voluntary basis. MABA recently joined a range of state and national agricultural organizations in encouraging agricultural employees and rural Americans to get the vaccine. We support a voluntary approach to this effort, and oppose a private-sector mandate.

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MABA Ag Club and Member Forum on Supply Chain Issues

On Wednesday, November 10, 2021, Michigan Agri-Business Association members are invited to join us at the Radisson Hotel in Lansing for discussion of supply chain issues looking ahead to 2022 and beyond. This event is free, open to MABA members, and will begin at 9:00 AM, immediately following that morning’s Lansing Ag Club. Following is more information and the agenda.

RSVP here for the Lansing Ag Club Breakfast and this special Supply Chain Forum.

MABA Forum on Supply Chain Issues

Wednesday, November 10, 2021

7:00-8:45 AM MABA Ag Club Breakfast

  • Sponsored by Potato Growers of Michigan, Inc.

8:45 – 9:00 AM Break

9:00 – 9:05 AM Program Introduction, Anti-Trust Policy

  • Chuck Lippstreu, President, MABA

9:05 – 9:45 AM Fertilizer Market Drivers and Issues to Consider

  • Josh Linville, Fertilizer Market Analyst, StoneX

9:45 – 10:30 AM Chemistry Supply Chain Considerations

  • Cynthia Stanton, Head of Supply Chain Operations for North America, BASF

10:30 – 11:00 AM   Trucks and Labor – Michigan and U.S. Issues

  • Brian Hitchcock, President, Michigan Trucking Assn.

11:00 – 11:30 AM   Wrap-Up: Questions, Industry Priorities, Discussion
                                             

Member News and Resources on Supply Chain Issues

Across Michigan and the nation, the agriculture industry faces challenges from uncertain global supply chains and difficulty in future planning. This issue continues to grow more acute virtually by the day as farmers and retailers try to look ahead to spring and summer 2022, and beyond. MABA is launching this page as a resource for our members to access key news stories and analysis regarding different elements of this situation. If you want to see something added, email anyone of the MABA staff.

News Stories (Sorted by Date)

  • October 19 – China’s Curbs on Fertilizer Exports to Worsen Global Price Shock (Bloomberg 10/19)

  • October 19 – Nitrogen prices erupt due to ‘perfect storm’ of global forces (Capital Press 10/19)

  • October 15 – Fertilizer Crisis Piles More Pressure on World’s Future Food Supply (Bloomberg 10/15)

  • October 12 – The Quarterly: Adapting to Persistent Supply Disruptions (Cobank 10/12)

  • October 12 – Wholesale Fertilizer Prices Expected to Continue Rising on Lower Production, Higher International Demand (DTN)

  • October 11 – Fertilizer Fever: Soaring Costs Could Impact Farmers and Food Prices: FarmDoc Daily provides an excellent rundown of current issues in fertilizer with this post. Farmdoc Daily 10/11

  • October 10 – India Said to Ask Phosphate Fertilizer Firms to Absorb High Cost: “India won’t increase subsidies on phosphorus-based fertilizers and has directed producers to refrain from raising prices, according to people with knowledge of the matter, threatening the firms’ margins as global costs of the raw material surge.” Bloomberg, Oct. 10

  • October 9 – Fertilizer prices soaring as natural-gas rally adds to ‘perfect storm’. “Fertilizer prices were already running red hot this year before a European energy crisis fanned the flames, potentially adding to a pinch on farmers in the U.S. and around the world and stoking worries about food inflation.” Marketwatch, Oct. 9
  • October 5 – As Many As Half A Million Shipping Containers Could Be Waiting Off Ports Of LA, Long Beach: “Officials say there could be as many as half a million shipping containers on cargo ships off the ports of LA and Long Beach, waiting to be offloaded. Frustrated truck drivers say the port needs to speed up wait times and have more docks ready to offload products, to keep up with demands. The ports recently broke several records for the number of ships they had at shore, as well as for the number of ships waiting to dock.” CBS LA 10/5

  • September 30 – China Phosphate Fertilizer Export Freeze Adds to Global Supply Challenges: “The move by China earlier this week to ban phosphate exports until at least June of next year puts even more pressure on global phosphate trade. The U.S. doesn’t buy much phosphate from China, but the country represents about 30% of world trade. Now China’s traditional buyers will be looking elsewhere.” DTN, Sept. 30