Monday, November 4, 2024

The big day creeps closer

Delivered every Monday by 10 a.m., Weekly Transportation examines the latest news in transportation and infrastructure politics and policy.
Nov 04, 2024 View in browser
 
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By Sam Ogozalek

With help from Chris Marquette

Quick Fix

— Transportation hasn’t been a focal point this campaign cycle, save sparring over electric vehicles. But there’s still plenty to watch on Election Day.

— Following criticism over his handling of air travel, DOT Secretary Pete Buttigieg says the Southwest Airlines meltdown two years ago “sent me into orbit” — and led to potentially legacy-defining decisions as he used his office to try to reshape the sector.

— Boeing machinists will vote on a third contract offer from the company today, setting up the potential end of their seven-week strike just before the election.

IT’S MONDAY: You’re reading Morning Transportation, your Washington policy guide to everything that moves. We’re glad you’re here. Send tips, feedback and song lyrics to Sam at sogozalek@politico.com, Chris at cmarquette@politico.com, Oriana at opawlyk@politico.com and Cassandra at cdumay@politico.com and follow us at @SamOgozalek, @ChrisMarquette_, @Oriana0214 and @cassandra_dumay.

This time tomorrow, where will we be?/ On a spaceship somewhere sailing across an empty sea.”

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Driving the Week

WHAT WE’RE WATCHING: Though the election result may not be official for days, your MT host will be keeping an eye on the turnout and outcome in Michigan — the heart of the U.S. auto industry — and how labor groups like the United Auto Workers and Teamsters play a role nationally. We’re also interested in how Vice President Kamala Harris and former President Donald Trump fare in counties that have seen significant Inflation Reduction Act investments or are set to benefit from the law, like Bryan County outside of Savannah, Georgia, where Hyundai’s EV “Metaplant” is located . (Trump carried the coastal county by a wide margin in the past two elections.)

— In the buildup to Tuesday, Democrats have undertaken a full-court press across the Rust Belt to promote Harris’ pro-union credentials amid lingering concerns over who rank-and-file members will support, Chris reports. And the New York Times and Siena College released new polling Sunday that shows just how close the race is. (In Michigan, Harris and Trump both garnered 47 percent.)

— The IRA led to a surge of green manufacturing projects planned in swing states. But a POLITICO analysis found that almost two-thirds of the announced investments won’t be completed until 2025 or later, meaning it may be too late to help Democrats this week. Kelsey Tamborrino and Jessie Blaeser have the story.

IT’S NOT JUST THE PRESIDENTIAL ELECTION: We’re also monitoring several tight races among incumbent members of the House Transportation and Senate Commerce committees. Sam and Chris have a list of the nine lawmakers here. Two hold leadership roles: Sen. Tammy Baldin (D-Wis.), who chairs Commerce’s Oceans, Fisheries, Climate Change and Manufacturing subcommittee, and Rep. Scott Perry (R-Pa.), who chairs T&I’s Economic Development, Public Buildings and Emergency Management subcommittee.

Aviation

“SENT ME INTO ORBIT”: DOT Secretary Pete Buttigieg faced fierce criticism over his oversight of air travel following the winter storm-sparked Southwest Airlines meltdown in late 2022 and the “summer of hell” — which saw a surge of flying after the pandemic kept people home. The Southwest episode, which resulted in nearly 17,000 canceled flights, “sent me into orbit,” Buttigieg told Nancy Scola for a POLITICO Magazine profile. That year of chaos, Buttigieg said, caused him to dig in on the idea of using his office to reshape the aviation sector and led to a series of decisions that may define his time as the agency’s chief. Some of his critics have now reassessed his performance: “I didn’t have an about-face on Pete Buttigieg. Pete Buttigieg did an about-face on me,” said Bill McGee, an airline issues advocate at an antitrust group.

Labor

THIRD TIME’S THE CHARM?: Striking machinists at Boeing will vote on a new contract proposal from the company today, which could end the seven-week walkout just before Election Day — or prolong it again. Machinists have been striking since Sept. 13.

— Continuing the strike would present particularly poor optics just a day before the country heads to the polls to select its new president — especially since the strike is already showing up in economic numbers. Friday’s jobs report, which indicated a weakening labor market, was muddied by the walkout and two hurricanes. It’s also not great for Boeing, which is still in the midst of trying to right its ship amid probes over quality control problems.

LATEST UNEMPLOYMENT NUMBERS: The unemployment rate in the U.S. transportation sector was 4.7 percent (not seasonally adjusted) in October, the Bureau of Transportation Statistics reported Friday, citing data from the Bureau of Labor Statistics. That’s a 0.1 percentage point drop compared to the rate in the same month last year and higher than the pre-pandemic level of 2.7 percent in October 2019.

CONTRACT TALKS AHEAD: The National Carriers’ Conference Committee, or NCCC, which represents the freight rail industry in national contract negotiations, said Friday it delivered its bargaining notice to the 12 major rail labor organizations that represent unionized workers across the U.S. In recent months, several Class I rail carriers and unions have reached local contract agreements ahead of national bargaining. The terms of the local agreements include 18.8 percent pay increases over five years, according to NCCC.

ELECTION 2024

MUSK’S WISH LIST: If Trump wins Tuesday, Tesla and SpaceX CEO Elon Musk may be in line for a role in the next administration, spearheading a vaguely defined “Department of Governmental Efficiency.” Musk has vowed to slash $2 trillion out of the federal budget, but what else does he want? Derek Robertson has a breakdown:

— Musk’s interested in cutting red tape for SpaceX rocket launches as he dreams of colonizing Mars and strives to make humanity a space-faring species.

— Tesla is the only major U.S.-based automaker that's not unionized, and Musk is anti-labor, which could mean the loosening of regulations concerning such issues.

—  He wants Starlink, his satellite broadband service, to be able to access a rural subsidy program, which would unlock millions, if not billions, of federal money.

— And there are many more issues that have caught Musk’s attention, like diversity, equity and inclusion initiatives, undocumented immigration and artificial intelligence.

Highways

21ST CENTURY UPGRADES: FHWA on Friday announced $16.6 million in grants to eight states to promote technology that speeds up construction projects. The Accelerated Innovation Demonstration Program was funded under the 2021 infrastructure law, and the money supports initiatives like innovative debris removal, enhanced work zone safety and using drones to conduct infrastructure inspections. Acting FHWA Administrator Kristin White in a statement said the move allows agencies to “use 21st century technologies in an increasingly digital world.”

— Among the recipients: The New Hampshire DOT will receive $3.2 million for improved information management, and the Ohio DOT will get nearly $3.3 million to update how it tracks the stages of project development.

The Autobahn

— “ Boeing shares rise as planemaker makes new wage offer to end strike.” Reuters.

— “China’s EV Makers Set Sights on Latin America in Global Expansion.” Wall Street Journal.

— “How Harley-Davidson Is Seeking to Smooth Tensions With Disgruntled Dealers.” Wall Street Journal.

— “Ethiopia bans imports of gas-powered private vehicles, but the switch to electric is a bumpy ride.” AP.

— “Japan plans automated cargo transport system to relieve shortage of drivers and cut emissions.” AP.

— “ Jury orders Bell Helicopter to pay $16 million to former supplier in a trade-secrets case.” AP.

— “A man is accused of punching and bloodying another passenger who was sleeping on a US flight.” AP.

— “ Lyft pays $2.1 million to settle case alleging the ride-hailing service deceived drivers.” AP.

— “This Year’s Hurricane Season Shows Airlines Climate Fears Coming to Bear.” Bloomberg.

— “BYD Sells Record Half a Million Plug-In Cars in Blowout Month.” Bloomberg.

— “Trump Is Betting Big on Musk’s Swing-State Moonshot.” New York Times.

— “Working-Class Voters Are Pivotal. Both Candidates Are Vying for Their Support.” New York Times.

— “ DoorDash announces $100K in grants for restaurants still recovering from Key Bridge collapse.” Baltimore Sun.

— “‘Lexus lane’? Express lanes proposed for Beltway in Virginia, Maryland.” NBC4.

— “ Spirit AeroSystems, SPEEA reach tentative agreement on new contract for Wichita engineers.” KAKE.

 

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