8 October 2019

1) GE (General Electric) announced they will freeze pensions for about 20,000 salaried U.S. employees in order to help the ailing conglomerate cut debt and reduce its retirement fund by $8 billion dollars. Presently, the company has $105.8 billion dollar debt. Their pension plans are among it biggest liabilities and is underfunded by about $27 billion dollars. This move will not effect present retirees who are collecting their pensions.

2) Twenty-one days into the strike, the UAW (United Auto Workers) and GM (General Motors) contract talks have taken a turn for the worse. The snag is product commitments for U.S. factories for new vehicles, engines, transmissions and other items represented by the union. GM is losing $80 million dollars a day, while striking workers are earning about one fifth their regular pay as $260 a month strike benefits.

3) The U.S. railroads slump is getting worse from the slowdown as manufacturing threatens U.S. economy. Trucking is also feeling a slowdown with less than truckload cargos decreasing, although long haul trucking seems to be holding up. Truck rates have dropped, which is pulling some freight business away from trains.

4) Stock market closings for – 7 OCT 19:

Dow                26,478.02    down    95.70
Nasdaq             7,956.29    down    26.18
S&P 500            2,938.79    down     13.22

10 Year Yield:    up   at    1.55%

Oil:    down   at    $52.80

WALMART TO HIRE CLOSE TO 1,000 TRUCKERS IN 2019

ECONOMIC & FINANCE REPORT

Walmart will be hiring close to 1,000 new truck drivers in 2019. The truckers who are seasoned throughout the year, being apart of the Walmart trucking program. Walmart drivers (whom have senority) will be attaining an increase in base salary to $90,000.

In 2018 Walmart hired 1,400 truck drivers, to stream line their trucking business. Their truck driver turnover is one of the lowest in the industry and Walmart has indicated they want it to stay that way. To increase the recruits of truck drivers, Walmart has upped the ante by improving base salary, vacation days, and onboarding systems to assist their drivers better on the job,

Truck drivers shortages seems to be the main concern in 2019, data by the American Trade Association (ATA) indicates truck drivers for the past 20 years have been hovering around the 3 million to the 3.5 million drivers mark in the USA. There has been a short fall of drivers, even though freight volume has will be increasing to over 35%, within the next decade. -SB