The International Longshoremen’s Association (ILA) is prepared to initiate an East Coast work stoppage at the ports that would essentially range from the Canadian border down to and including the Gulf Coast. Last week, two days of meetings from the largest longshoremen’s union on the continent ended with a unanimous vote to approve a strike beginning October 1 if their demands for a new contract aren’t met.

• The most significant sticking points for the union are wage increases and a cap on the ports’ use of automation, according to insiders.

John Janson, vice president of global supply chain for SanMar – PPAI 100’s No. 1 supplier, which accounted for nearly $4 billion in revenue in 2023 – told PPAI Media that, if a resolution isn’t reached, the ramifications will extend far beyond just the promo industry.

“It would have a catastrophic effect on the overall U.S. economy,” Janson says.

• If the affected ports were to close, it would impact 43% of U.S. imports.
• Sea Intelligence estimates the ports to account for $3.7 billion per day.

As things stand in the second week of September, the two sides don’t appear close to bridging the gap in negotiations, as the port owners, represented by the United States Maritime Alliance, suggest that the ILA is operating as though a strike is forthcoming.

“The ILA continues to strongly signal it has already made the decision to call a strike, and we hope the ILA will reopen dialogue and share its current contract demands so we can work together on a new deal, as we have done successfully for nearly 50 years,” the United States Maritime Alliance said in a statement.

Promo’s Perspective

Last year, the International Longshore and Warehouse Union (ILWU) managed to ratify a six-year contract, narrowly avoiding a similarly costly work stoppage. The West Coast ports will be open and operating at full strength in October, regardless of what happens on the other side of the country, but Janson says that its too late for any company that is just now thinking about shifting their plans for imports.

“If people wanted to move cargo to the West Coast, that already would have had to happen,” Janson says. “We’re within 30 days of this potentially coming to fruition.”

Given this precariousness, many promo suppliers – and their distributor partners – may be at the mercy of the ILA negotiations and the residual effects of a potential strike.

“It’s another major situation compounding on top of other dynamics, like continued rising container costs, the diversion of shipping around the Middle East and other logistical concerns,” says Yuhling Lu, CEO of Ariel Premium Supply, PPAI 100’s No. 17 supplier.

“The greatest impact we see on our supply chain is that suppliers will re-route containers to West Coast ports, which will greatly increase the congestion there, creating delays and almost guaranteeing higher unloading and transit costs. Plus, we’ll have to contend with possible limited availability of train and truck trailer carriers.”

While Lu maintains that Ariel has enough inventory to weather the potential logistics storm, Paul Hirsch, MAS, CEO of HIRSCH – PPAI 100’s No. 20 supplier – isn’t feeling as optimistic.

“We’ve been keeping a close eye on the possible strike and have made some proactive efforts to try and minimize disruption,” Hirsch says, “but with the news around negotiations not looking promising, we expect this to affect supply in the fourth quarter.”

Trevor Gnesin, CEO of Logomark – the No. 14 supplier in the PPAI 100 – shares Lu’s concern about congestion at West Coast ports.

“We may be [indirectly] affected because many companies will reroute and rail their goods across the country, putting additional pressure on West Coast ports,” Gnesin says.

Gemline – the No. 11 supplier in the PPAI 100 – has already adopted that strategy, according to Tim Behling, vice president of supply chain at Gemline.

 “Our proactive measures have positioned us well to navigate potential disruptions and continue providing excellent service to our customers,” Behling says.

In addition to shifting some shipments to West Coast ports, Gemline is sourcing more product domestically from select retail brand partners that carry heavy inventories and pulling forward shipments that were originally scheduled for September/October to ensure that the firm has ample inventory to meet customer needs in Q4.

“We’re moderately concerned about the potential for a strike, but we’re maintaining cautious optimism,” Behling says.

Jose Gomez, president and CEO of Edwards Garments, PPAI 100’s No. 19 supplier, says that while a port strike is a serious obstacle to the promo industry, Edwards is well-positioned for such an event.

“We have neither the highly seasonal demand nor the highly holiday-related product assortment that others in retail and promo experience,” Gomez says. “We have safety stocks in place and the diversity of our sourcing base provides multiple other entry points for our products. Therefore, we don’t believe a temporary stop or delay will have major impact on us.”

Importing the majority of its products from China, Ball Pro, PPAI 100’s No. 39 supplier, is another promo firm that relies upon West Coast ports.

“The only item that comes from East and Gulf Coast ports is our hockey pucks, and we’re working with [that factory], so it shouldn’t affect us much,” says Adam Hanson, president of Ball Pro. 

• Beyond direct and immediate impact, it is possible that the entire promo industry would be affected by the ramifications of a prolonged strike.
• Sea Intelligence suggests even just one day of work stoppage would cause 5-7 days of slowdowns, and a strike lasting one week would result in a slowdown that wouldn’t be cleared up until nearly Thanksgiving.
• The domino effect of this would have consequences for the supply chain and, ultimately, the economy, quite possibly affecting the budgets of promo clients.

What Happens Next?

Janson says that SanMar has closely monitored the situation through its sources in both the carrier and port spaces, and increased tension over the coming weeks is beginning to look likely.

“The message that we continue to hear is that it’s going to continue to get loud, but it will probably get settled close to the timeframe that it’s due, or if there is a strike, it will go no further than one or two days because the federal government will almost have to step in,” Janson says.

• The U.S. government would have an avenue to step in through what is known as the Taft-Hartley Act, which allows the government to force union workers back to work when it’s deemed sufficiently necessary for the good of the country.
• A strike would put the White House in a difficult position, as President Joe Biden has made statements and gestures during his term to appear as a union-friendly president who strongly favors letting such issues be resolved through collective bargaining.
• The Biden administration told CNBC in a statement last week, “we’ve never invoked Taft-Hartley to break a strike and are not considering doing so now.”

In a speech, ILA President Harold Daggett made clear that the union members were fully prepared to strike and that implementing the Taft-Hartley Act wouldn’t be a long-term solution to work stoppage relative to meeting the union’s demands. Janson noted that Daggett is nearing retirement and that he may be more willing to go the distance in a standoff with the ports as a symbol of toughness for his legacy.

• Along with the West Coast port labor negotiations, last year also saw UPS come precariously close to a consequential strike that was averted at nearly the last hour.
• Janson noted that, while he sees similarities between those two situations and the current scenario on the East Coast, the U.S. government was involved, at least with the West Coast port negotiations, much earlier in the process, which may have had a considerable impact on the eventual resolution.

Still, Janson says SanMar’s sources are not panicking as of this point in the process.

“We’re not seeing any of the carriers take action. They’re still sending vessels. They aren’t delaying vessels coming into ports,” Janson says. “We aren’t seeing ports take major contingency actions.

“The closer it gets the more news is going to break on it. At the end of the day, I think the sides will come together and work out an agreement.”

Written by: Jonny Auping & John Corrigan

Published with Permission from PPAI

It’s the dawning of a new era at Charles River Apparel (PPAI 111644, Gold), as PPAI 100’s No. 37 supplier has announced that Jason Lipsett has been promoted to president of the company, effective September 12.

Jason’s appointment marks three generations of Lipsetts at the helm of the New England-based firm, which his grandfather, Walter Lipsett, founded in 1983.  

“I feel a great responsibility stepping into this role and am deeply mindful of what it means for our employees, our customers and our community,” says Jason. “I’m committed to creating a work environment built around respect, teamwork and a growth mindset. Our customers know they can trust Charles River Apparel for quality and reliability, and it’s my goal to create even stronger partnerships that yield mutual success.”

• Barry Lipsett, Jason’s father, will continue to serve as CEO, partnering with his son to lead the company going forward.
• Jason is the same age, 34, that Barry was when he became the company’s president in 1993.
  

“Jason’s leadership and dedication have been pivotal in driving our recent successes,” Barry says. “He has an innate understanding of our business, our crew and our customers. His promotion to president isn’t just a reflection of his accomplishments, but a testament to his vision for the future of Charles River Apparel.”

As part of that vision, Adam Heaslewood has joined the company as chief revenue officer, overseeing sales and marketing. Reporting directly to Jason, he’ll begin his new role on the same day that his new boss takes over.

• Heaslewood’s career in sales and marketing spans several decades and includes leadership roles at global brands like adidas, where he helped drive growth and expand the brand’s market presence.
• He was most recently vice president of sales at Los Angeles-based Therabody, working on the retail side of the business. Therabody also sells into the promotional products market.

“What really stood out to me about Adam is his impressive track record and how closely his values align with those of Charles River Apparel,” Jason says. “Adam is deeply team-focused, driven and has a vision that I believe will be key in shaping the future of our company, creating opportunities for both our employees and our customers.”

It’s A Family Affair

Entrepreneurship is in the Lipsett blood.

In the wake of World War II, Walter bought Central Steel Supply from his uncles and brother, resuscitating the floundering business. More than three decades later, inspired by the unpredictable weather of New England, he launched Charles River Apparel with its signature product: a yellow rain slicker.

After several years of stagnant sales in the retail space, Walter sent his son Barry (who joined Charles River Apparel in 1987) to a local promotional products trade show to gauge the potential of the market. The jacket was a hit, and the Lipsetts embraced the promo industry.

• Over the past 40-plus years, the product line has expanded to include additional outerwear, activewear, corporate attire and other apparel.

In 1993, Barry purchased the business from his father, becoming president and CEO. He has since led the Sharon, Massachusetts-based supplier to significant sales increases: Charles River Apparel generated $40 million in 2023 revenue, up 25% since 2020. For 2024, the company earned PPAI 100 High Marks in the categories of Innovation and Employee Happiness.

• Serving more than 13,000 distributors nationwide, the company’s lines have penetrated sporting goods, college bookstores, resort stores and other avenues.
  

From left to right: Jason, Deb, Barry and Walter Lipsett

Charles River Apparel has focused on philanthropic efforts as part of the Charles River Cares program, which was created by Barry’s wife Deb in 2010. Through the program, the firm has donated more than 108,000 products since 2018 to go along with additional monetary donations. Employees participate in volunteerism and fundraising events, such as Christmas in the City, an annual toy-filled party for homeless and poverty-stricken Boston-area families. Charles River Apparel’s closest philanthropic partner is Circle of Hope, which supports 22 homeless shelters in the area.

• Throughout 2024, Charles River Apparel is donating 3% of net sales from its Franconia Collection to Meals on Wheels for a minimum of $25,000.
• From August 1 to October 31, the firm is donating 10% of the purchase price from select pink items for a minimum donation of $10,000 and a maximum donation of $20,000 to the Breast Cancer Research Foundation.
• Barry also participates in the Pan-Mass Challenge, an annual bike-a-thon that raises funds for cancer research.

“From the beginning, my vision for Charles River Apparel was to create a business rooted in strong core values, like bringing in quality merchandise and building good relationships with customers,” Walter says. “As we grew, maintaining these values became even more important, and I always hoped the company would remain in the family long-term. That was my objective when I founded the business, and I take great pleasure in seeing this legacy continue within our family.”

A New Generation

Although Barry had hoped he would one day hand the reins over to his son, he never pressured Jason to join Charles River Apparel.

He credits Deb, who was a career counselor at various colleges, in guiding Jason to explore his interests before choosing a path that resonated with him.

• Barry also attributes Jason’s time as a competitive athlete – he played men’s varsity tennis in college and was a three-time Bay State Conference All-Star during high school – with teaching him discipline, hard work and leadership.

In 2013, Jason graduated magna cum laude from Bentley University with a bachelor’s in business management and a minor in psychology. The next year, he joined Charles River Apparel as a digital marketing manager and would later serve as the key project manager for the development of the company’s website.

• In the fall of 2017, he took a two-year sabbatical to earn an MBA from Boston College.

Upon his return, Jason became marketing director before transitioning to vice president of strategic initiatives, a new position that he says enabled him to work as more of a partner with the leadership team, especially Barry, to “evolve and guide the big decisions impacting the company.”

Furthermore, Barry says he’s been helping prepare Jason for this new role by encouraging him to seek additional training, build relationships with customers and business partners and learn from the company’s successes and failures.

“Jason has a natural ability to build deep connections with team members, and I’ve always encouraged him to lean into this strength,” Barry says. “I’ve also emphasized the importance of aligning with the company’s core principles established by my dad, ensuring that our company’s legacy continues. Through these experiences, Jason has developed the skills and confidence needed to step into this expanded role.”

At the same time, Barry plans on staying very involved by nurturing and strengthening relationships with customers, constantly advocating for continuous improvement and seeking new ideas to differentiate the brand.

“Barry is very hands-on and excels at problem-solving, always directly engaging with challenges as they arise and constantly pushing the envelope with new ideas,” Walter says. “On the other hand, Jason has a unique approach to leadership by creating a strong team, leveraging a growth-oriented mindset and developing short and long-term strategies. It’s wonderful to see Barry and Jason complement each other so well and respect each other’s opinions, guiding the company forward with their distinctive styles.”

What’s Next For Charles River Apparel?

As president, Jason says he’ll focus on increasing market share and brand awareness through innovation, sustainability and customer relationships.

• Under his leadership, the company will also prioritize modernizing the customer experience, expanding its product offerings and leveraging digital strategies.

“We now see more and more brands in this space, which is exciting,” Jason says, “and we believe that Charles River can easily be a true, nationally recognized lifestyle brand. We have all the ingredients: a great product, great story, great team and a great customer base.”

Jason says he’s also building a team built for long-term success, starting with the hiring of Heaslewood, who has plenty of experience growing apparel brands.

“After speaking with Jason and the team, I came away thinking they were humble and hungry, which really resonated with me,” Heaslewood says. “I’ve worked for corporations where there were egos at play, but they seem to park the egos at the door and just generally want what’s right. That comes with running a family business for so long.”

Heaslewood adds that the company’s structural changes allow the leadership team to now focus on key strategic initiatives to evolve Charles River Apparel.

“One thing that really appealed to me is the ability to be agile and pivot quickly if we need to,” Heaslewood says. “In working for a global brand like adidas, you can’t pivot quickly no matter how much you want to. So, if we can build off our infrastructure, then there are some exciting things that we could try within the marketplace.”

Ultimately, the leadership team is now able to invest in the brand in a bigger way, Jason says.

“We’re going to explore new opportunities for Charles River Apparel and really extend our solid core,” Jason says. “Our goal is to make Charles River Apparel more of a front-of-mind brand name for consumers bringing that demand into the promotional products industry.”

Written by: John Corrigan

Published with Permission from PPAI

Lakewood, New Jersey-based supplier GMG Works (PPAI 313899, Standard-Base) has announced that Howard Cubberly has joined the company as CEO.

• GMG Works was founded 20 years ago as GMG Pen & Ultrapens and has since been rebranded.
• Its product line includes pens, highlighters, drinkware and other promotional products.

“I’m excited to join GMG Works,” Cubberly says. “The super dedicated team here that has built a five-star and A+ reputation of personalized customer service for our distributor partners. The future is bright as we work to build on this foundation and align our value promise of continued great service with new creative product and decoration expansion to be the ‘Distributor’s Supplier.’”

Cubberly’s Background

A 33-year promo veteran, Cubberly most recently served as global general manager at Goldstar – the No. 16 supplier in the PPAI 100.

• Under his leadership, Goldstar developed new product categories, expanded throughout North America and Europe and received multiple awards.
• Cubberly previously worked for supplier Astor Chocolate and spent 14 years in sales management at Koozie Group – the No. 9 supplier in the PPAI 100.

“With Howard as our leader, we’re extremely excited about the future and for new opportunities,” says Jack Kahan, director of operations at GMG Works. “We’ve invested heavily in the latest printing technology, best software for order and customer experience efficiency, an entire line of patented designed pens, sustainable products and deep inventory for our programs department.”

Storm Creek (PPAI 438091, Gold) – the No. 43 supplier in the PPAI 100 – has announced a partnership with bluesign (PPAI 825888, Standard-Base), a Swiss business services provider specializing in sustainable textile production.

• The Eagan, Minnesota-based supplier is the first U.S.-based promotional products company to join the bluesign System.

Founded in 2000, bluesign employs more than 100 environmental experts, many of them Ph.D. chemical scientists who work closely with manufacturers and suppliers to ensure production meets bluesign’s rigorous environmental, worker and consumer safety requirements in pursuit of textile materials certifications. If the manufacturing and chemistry assessments don’t meet the criteria, bluesign creates a roadmap for improvement.

• Cybergroup International – a German-based company and the No. 34 distributor in the PPAI 100 – is bluesign’s first partner in the promo industry.

“This partnership takes our already strong commitment to sustainability to the next level,” says Doug Jackson, founder and president of Storm Creek. “Our aim is to inspire and educate promotional products distributors to sell sustainably and increase the impact their end buyers can have. Storm Creek is proud to set the standard for the promo industry.”

Storm Creek’s Pledge

As part of this commitment, Storm Creek has pledged to use only bluesign-approved fabrics by 2025.

• Its upcoming 2025 product catalog already features a range of products made with bluesign-certified fabrics.

Storm Creek’s partnership with bluesign aligns with its mission to deliver high-performance, sustainable apparel while minimizing environmental impact.

Last year, the woman-owned, eco-friendly lifestyle apparel brand surpassed 32 million upcycled bottles used in its garment manufacturing, and it also accelerated the overall percentage of recycled content in its garments to more than 90%.

“We’re thrilled to welcome Storm Creek as a promotional products brand to join the bluesign System,” says Daniel Rüfenacht, CEO of bluesign. “Their commitment to using 100% bluesign- approved fabrics by 2025 is a bold and commendable step towards a more sustainable future. Storm Creek’s leadership in this area sets an inspiring example for the entire promotional products industry.”

Drinkware supplier Tervis (PPAI 110960, Standard-Plus), known for its insulated tumblers, has filed for Chapter 11 bankruptcy.

• In the promotional products industry, Tervis’ product line is carried by Koozie Group – the No. 9 supplier in the PPAI 100.

The filing states that the North Venice, Florida-based company, which doesn’t disclose annual revenue figures, has total assets and liabilities ranging from $10 to $50 million, Business Observer reported.

“This difficult business decision was one that we made in order to preserve the company’s legacy and better the company for the future to ensure its continued existence and operational success in the decades to come,” said Tervis Chairman Rogan Donelly.

Koozie Group CEO Pierre Montaubin tells PPAI Media that, despite the bankruptcy filing, “it’s business as usual with Tervis.”

“We’ve been in close contact with them and will support them through this next phase,” Montaubin says. “Tervis is a fantastic brand with a great legacy, and we expect its products to continue to perform well in the promo market. ”

What Caused Tervis’ Bankruptcy?

Executives have cited several factors for the bankruptcy:

• A drop in consumer spending and a rise in operating expenses due to inflation.
• A post-COVID spike was followed by a sharp decline in e-commerce sales.
• Retail locations that have failed to recover from the pandemic.
• The closure of its distribution facility in order to sublease the property, “which has proven difficult.”
• A “burdensome” lingering lawsuit filed in 2018 by a previous supplier.

Another major challenge for Tervis has been adapting to the stainless-steel drinkware trend, driven by competitors Yeti, S’well, Hydro Flask and, most notably, Stanley.

RELATED: Stanley Drinkware’s Parent Firm Requests Dismissal Of Class Action

Tervis entered the stainless on-the-go drinkware market in 2016, but, officials say, “struggled to be competitive with larger brands on price at retail locations, and didn’t meet consumer expectations on product quality regarding chipping and peeling until January 2023,” Business Observer reported.

The third-generation family business, which was founded in 1946, won’t seek funding from outside investors to aid the company post-bankruptcy, Donelly said.

However, layoffs are expected in the coming weeks.

• Tervis currently has about 140 employees, down from some 200 last fall and from its peak of 1,000 employees (including seasonal workers) nearly a decade ago, Business Observer reported.

Recovery Plan

Tervis CEO Hosana Fieber says the projected time frame to exit bankruptcy is three to six months.

“We have a thoughtful and executable plan in place to focus the company’s attention and resources back to our legacy product,” Fieber said.

• That plan includes launching a new product category of melamine – a plastic often found in reusable utensils, dishes and cups – to accompany its classic drinkware portfolio, Business Observer reported.

“We didn’t meet consumer standards when we went outside our initial brand position and that’s what we need to get back to,” Fieber said. “We will focus on our classic portfolio while keeping our current high quality, premium stainless product lineup.” 

The Federal Trade Commission’s new rule banning employers from imposing non-compete clauses on their employees has been denied by a federal judge in Texas.

Following up on her decision last month to grant a preliminary injunction preventing the rule from taking effect in September, U.S. District Judge Ada Brown on Tuesday struck down the ban, saying that the FTC didn’t have the power to issue such a sweeping regulation.

“The role of an administrative agency is to do as told by Congress, not to do what the agency thinks it should do,” Brown wrote in a 27-page opinion. “In sum, the court concludes that the FTC lacks statutory authority to promulgate the non-compete rule, and that the rule is arbitrary and capricious. Thus, the FTC’s promulgation of the rule is an unlawful agency action.”

‘Potential Appeal’

U.S. Chamber of Commerce President and CEO Suzanne Clark called the decision a “significant win in the Chamber’s fight against government micromanagement of business decisions.”

Meanwhile, FTC spokesperson Victoria Graham said the agency is “seriously considering a potential appeal.”

“We’re disappointed by Judge Brown’s decision and will keep fighting to stop non-competes that restrict the economic liberty of hardworking Americans, hamper economic growth, limit innovation and depress wages,” Graham said in a statement to ABC News.

Conflicting Decisions

• The motion was requested by tax preparation company Ryan LLC and the U.S. Chamber of Commerce, which filed a lawsuit just one day after the FTC’s 3-2 vote to issue the ban, which was set to take effect on September 4.

However, on July 23, a federal judge in Pennsylvania denied a small business’ request to temporarily block the ban.

• U.S. District Judge Kelley Hodge in Philadelphia said that the “FTC is empowered to make both procedural and substantive rules as is necessary to prevent unfair methods of competition” under Section 5 of the FTC Act.

And then last week, a federal judge in Florida also temporarily blocked the ban.

• U.S. District Judge Timothy Corrigan cited the “major questions doctrine,” which says that federal agencies can only issue rules with broad societal impacts with Congress’ explicit permission, Reuters reported.

Breaking Down The FTC Ruling

• About 30 million people (20% of U.S. workers) have signed non-competes, according to the FTC.

In February, PPAI Media listed non-compete clauses as one of the key employment areas to watch in 2024 after the FTC proposed the legislation that this ban initially stemmed from in January.

• California, Minnesota, Oklahoma and North Dakota have already banned noncompete agreements, and at least a dozen other states have passed laws limiting their use, Reuters reported.

Rachel Zoch, public affairs and research editor at PPAI, says that the U.S. Supreme Court overturned a 40-year precedent of deference to federal agencies in June, “so it’s likely we’ll see more challenges to administrative rules like this.”

“It’s possible that Congress will take up the issue, but not before the election,” Zoch says.

On July 3, Brown partially blocked the rule, saying that the FTC “lacks the substantive rulemaking authority with respect to unfair methods of competition.”

Non-compete clauses are a contractual term between an employer and a worker that blocks the worker from working for a competing employer or starting a competing business, typically within a certain geographic area and period of time after the worker’s employment ends.

Last year, Joshua White – then the head of strategy and general counsel at BAMKO and a member of the PPAI Board of Directors – wrote a column for PPAI Media arguing against non-compete contracts as a practice in promo and predicting the FTC’s decision.

“The point here is not to challenge your opinion on non-competes,” White wrote. “I expect the FTC will take that issue out of your hands soon enough. My point is to challenge the way you think about people, culture and the role you play in shaping both.”

Written by: John Corrigan

Published with Permission from PPAI

The promotional products industry is about to experience yet another supply chain disruption as Canada’s two major freight railroads have halted operations.

Canadian National (CN) and Canadian Pacific Kansas City Southern (CPKC) both locked out their employees on Thursday morning due to a contract dispute with the Teamsters union, The Associated Press reported.

The shutdown, which is impacting more than 9,000 unionized workers, could wreak havoc on both the Canadian and United States economies, as nearly a third of the freight handled by the two railroads crosses the U.S.-Canadian border, CNN reported.  

• For example, a three-day strike would cause $300 million ($407 million CAD) in economic damage, while a seven-day strike would bring losses to more than $1 billion ($1.4 billion CAD), according to the Anderson Economic Group, a research firm that specializes in estimating the economic impact of work stoppages.  

“We fully understand and appreciate what this work stoppage means for Canadians and our economy,” CPKC said in a press release. “CPKC is acting to protect Canada’s supply chains, and all stakeholders, from further uncertainty and the more widespread disruption that would be created should this dispute drag out further resulting in a potential work stoppage occurring during the fall peak shipping period. Delaying resolution to this labour dispute will only make things worse.”

• After Canada introduced new duty and rest period rules in 2023, CN wanted to increase shift durations from up to 10 hours a day to up to 12 hours a day, Reuters reported.

• Not surprisingly, the Teamsters rebuffed.

Without an agreement or binding arbitration, CN says it had no choice but to finalize a safe and orderly shutdown and proceed with a lockout.

• However, Canada doesn’t have the same law as the U.S. does that would allow Trudeau to prevent a lockout or strike while a panel weighs the demands of the union and the companies.

A similar situation occurred in the U.S. in 2022, but President Joe Biden and Congress intervened, forcing unions to accept a deal.

What Led To The Lockout?

All parties involved were aware that a shutdown was likely to happen: CPKC has been negotiating with the Teamsters for nearly a year and CN has been trying to reach an agreement for nine months, The Associated Press reported. 

The labor dispute is largely over wage increases, scheduling and demands for better work-life balance, according to the union and companies.

“Over the last nine months, CN has negotiated in good faith,” CN said in a press release. “The company consistently proposed serious offers, with better pay, improved rest and more predictable schedules. The Teamsters have not shown any urgency or desire to reach a deal that is good for employees, the company and the economy. We urge the Teamsters to engage in these negotiations with the urgency and importance that this situation requires.”

Despite the lockout, the union says it remains at the bargaining table with both companies. 

“Throughout this process, CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck,” says Paul Boucher, president of the Teamsters Canada Rail Conference. “The railroads don’t care about farmers, small businesses, supply chains or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy.”

Less than 48 hours before the shutdown, the U.S. Chamber of Commerce and Canadian Chamber of Commerce issued a joint statement calling on Canada’s government to “immediately intervene.”

“A stoppage of rail service will be devastating to Canadian businesses and families and impose significant impacts on the U.S. economy. Significant two-way trade and deeply integrated supply chains between Canada and the United States mean that any significant rail disruption will jeopardize the livelihoods of workers across multiple industries on both sides of the border. The Government of Canada must take action to ensure goods continue to move reliably between our two countries,” the chambers said. 

Both railroad companies have also called on the government to intervene and refer the dispute to binding arbitration, but Prime Minister Justin Trudeau has declined thus far.

Written by: John Corrigan

Published with Permission from PPAI

Vantage Apparel (PPAI 113235, Platinum) – the No. 12 supplier in the PPAI 100 – has announced a strategic partnership with Starline (PPAI 112719, Gold) – the No. 15 supplier in the PPAI 100 – to significantly expand the product offering available through Vantage’s webstores.

• The partnership will provide distributors with access to a diverse range of single-piece, on-demand branded products, such as apparel, bags, coolers, Bluetooth speakers, flashlights and drinkware, including Stanley products.

Rob Watson, CEO of Vantage Apparel, says the collaboration with Starline marks a significant milestone for the New Jersey-based firm.

• Both Vantage Apparel and Starline earned 2024 PPAI 100 High Marks for Innovation.

‘One-Stop Solution’

• The platform boasts a range of features, including pop-up shops, points programs, budget allocations, powerful reporting and order approvals.

“Vantage is known industry wide for its creative and innovative decoration capabilities, combined with first-class apparel,” says Brian Porter, chief revenue officer at Starline. “This works so well with our award-winning digital Tru Color decorating and best-in-class product quality that the synergy was a natural fit. We’re beyond thrilled to expand our ‘On Demand’ capabilities and combine those in a one-stop solution for both apparel and hard goods.”

“By integrating Starline’s high-quality hard goods into our platform, we’re not only broadening our product range, but also enhancing the value we provide to our distributors and their customers,” Watson says. “This partnership exemplifies our commitment to innovation, integration and excellence in the promotional products industry.”

The partnership comes on the heels of Vantage launching its new webstore platform, which includes PCI and SOC2 compliance measures, ensuring the “highest standards” of data protection and privacy for users.

Vantage’s collaboration with Starline allows distributors to incorporate a curated selection of both apparel and hard goods into their webstore, providing real-time inventory and enhanced ordering capabilities for all products.

“Each product in Starline’s on-demand lineup offers the same single-piece, decorated option that our customers have grown to love and expect from Vantage,” says Chris Alfano, chief digital officer at Vantage Apparel.

Written by: John Corrigan

Published with Permission from PPAI

SnugZ USA (PPAI 112982, Platinum) – the No. 7 supplier in the PPAI 100 – has announced the addition of Alex Barberis as its new chief technology officer.

• The West Jordan, Utah-based firm earned 2024 PPAI 100 High Marks in Innovation.

“I’m thrilled to join the incredible team at SnugZ,” Barberis says. “Their talent and dedication are truly inspiring, and I see immense potential to drive the company’s growth through innovative technology solutions. I look forward to collaborating with everyone to take SnugZ to new heights.”

• Previously, he was the CTO at BEL USA, parent company of BEL Promo – the No. 34 supplier in the PPAI 100.  

• After leading the digital transformation of manufacturing processes and e-commerce capabilities at BEL USA, Barberis joined Amazon, where he worked on new and existing products in the music streaming and automotive spaces.

“Alex’s extensive background in technology and management will be instrumental in driving SnugZ USA’s growth and technological advancements and will propel our organization into the future,” says Brandon Mackay, MAS, president and CEO of SnugZ USA.

Barberis’ Background

Barberis is returning to the promotional products industry after two years away.

Written by: John Corrigan

Published with Permission from PPAI

PPAI has announced the slate of candidates for its incoming Board of Directors class, due to serve the promotional products industry’s leading nonprofit trade association from January of 2025 until 2029. 

The two-person slate includes Kate Alavez, president of PromoShop – ranked the No. 29 distributor on the PPAI 100 – and Mark Gammon, CEO of Cap America, which is PPAI 100’s No. 18 supplier.  

The election to approve the slate begins August 26 and closes August 30. Each PPAI member company’s voting contact is eligible to cast a vote for the slate. Voting will be done electronically, and a new 2024 username and password will be emailed to the voting contacts when voting opens. 

A candidate must receive majority approval among votes cast to be named to the board of directors following The PPAI Expo 2025. 

The two board seats represent replacements for the expiring terms of Karie Cowden, MAS, founder and president of Connect the Dots Promotions and Kevin Walsh, CAS, president of Showdown Displays.  

Alavez and Gammon were nominated to the slate following evaluation by the Leadership Advisory Committee, vetting by the Elected Directors Nominating Committee and ultimately, approval by the sitting PPAI Board of Directors. Each group consists of member volunteers. 

About Kate Alavez 

When her employer, Diagnostic Products Corporation, was sold to Siemens in 2006, Alavez took a recommendation from a family friend and applied at PromoShop as a Sales Support Assistant. Eventually spending over a decade in human resources, Alavez was promoted to Chief Operating Officer in 2018 and then President of the Los Angeles-based distributor earlier this year.  

Alavez spoke to PPAI Media about the experiences that have prepared her for a potential seat on the Board.  

About Mark Gammon 

After nearly eight years at distributor The Vernon Company, where Gammon honed his skills in sales management, business development and client relationship-building, the industry veteran joined Cap America in 2018 as Vice President of Sales. He quickly climbed the company ladder, becoming President and COO of the Missouri-based firm less than two years later. 

Gammon spoke with PPAI Media about what he’s hoping to bring to the board. 

Along with those terms set to expire in January, the PPAI Board of Directors currently includes Regional Relations Committee delegate Kara Keister, MAS, of distributor Social Good Promotions, Dan Pantano of supplier alphabroder, Danny Rosin of distributor Brand Fuel, Chris Anderson of supplier HPG, Denise Taschereau of distributor Fairware, Lori Bauer of distributor iPROMOTEu, Erin Reilly of supplier Pop! Promos, Zack Ottenstein of distributor The Image Group and Board Chair Andrew Spellman, CAS, of supplier Therabody. 

Written by: Jonny Auping

Published with Permission from PPAI