Introduction to Real ID

Travelers take note: The federal government says it will start enforcing Real ID requirements at U.S. airports starting May 7. That means travelers will need a Real ID-compliant license or other accepted form of identification like a passport to get through security before a domestic U.S. flight. The Transportation Security Administration said 81% of people approaching airport checkpoints already have Real ID-compliant identification, though it varies by state.

Preparing for the Deadline

Federal and state officials in recent weeks have urged travelers to make appointments at motor vehicle departments to update licenses and other ID cards before the deadline, though availability has become scarce. "Make your appointments now as quick as possible," John Essig, the Transportation Security Administration’s federal security director for New York City-area airports, said at a news conference at LaGuardia Airport earlier this month. "We certainly don’t want to hold up anyone without Real ID at the checkpoint," Essig said. Airlines have also been reminding travelers of the new requirements through customer emails and other channels.

What is a Real ID?

A Real ID is an identification card, like a driver’s license or state-issued ID, that is compliant with federal rules initiated in the wake of the Sept. 11, 2001, terror attacks. Those hijackers were using state IDs and driver’s licenses, some of which were obtained fraudulently. In 2005, Congress passed the Real ID Act, allowing the federal government to set standards for state IDs. It was originally supposed to go into effect in 2008, but has been repeatedly postponed, including during the pandemic. The ID cards have a gold or black star, or in California, a yellow bear, on the top right.

Requirements and Alternatives

Travelers 18 or over need the ID, or another form of accepted ID, for U.S. domestic flights. If you can’t get a Real ID by May 7, there are options. The TSA says you can use a U.S. passport; a permanent resident card, also known as a green card; or a trusted traveler ID, like a Global Entry card, and others. However, the Real ID cannot be used for international travel, but you can opt for an "enhanced ID" that is also Real ID compliant, which you can use to travel to Mexico and Canada.

Deadline and Consequences

The TSA says that the deadline is legitimate and that travelers without a Real ID or other accepted document could experience delays when going through security because it will take longer to verify their identity. They could face "additional screening and the possibility of not being permitted into the security checkpoint," the TSA said in a news release. The agency recommends travelers arrive at least three hours before domestic flights if they don’t have Real ID or an alternative. "Identity verification is a lynchpin in security and we will make sure that passengers are verified as being who they say they are before they can go beyond the checkpoint," said spokesman Carter Langston.

Conclusion

In conclusion, the Real ID requirement is a crucial security measure that will be enforced at U.S. airports starting May 7. Travelers must ensure they have a Real ID-compliant license or another accepted form of identification to avoid delays and potential denial of access to the security checkpoint. It is essential to understand the requirements and alternatives available to ensure a smooth travel experience.

FAQs

Q: What is a Real ID?

A: A Real ID is an identification card that is compliant with federal rules initiated in the wake of the Sept. 11, 2001, terror attacks.

Q: Who needs to show a Real ID?

A: Travelers 18 or over need a Real ID or another form of accepted ID for U.S. domestic flights.

Q: Can I use another form of ID?

A: Yes, you can use a U.S. passport, a permanent resident card, or a trusted traveler ID, like a Global Entry card, and others.

Q: Can I use the Real ID to travel internationally?

A: No, but you can opt for an "enhanced ID" that is also Real ID compliant, which you can use to travel to Mexico and Canada.

Q: Is the deadline real?

A: Yes, the TSA says that the deadline is legitimate, and travelers without a Real ID or other accepted document could experience delays when going through security.

Employee activism in the workplace is becoming increasingly prevalent, with workers speaking out on social and political issues. This trend is not limited to large corporations, as small businesses and startups are also facing the challenges of employee activism. From diversity and inclusion to climate change, employees are expecting their employers to take a stand on important issues.

Understanding Employee Activism

Employee activism refers to the practice of employees advocating for social and political causes within the workplace. This can take many forms, including protests, petitions, and social media campaigns. Employees are no longer just seeking a paycheck, but also a sense of purpose and meaning in their work.

Why Employee Activism Matters

Employee activism matters because it can have a significant impact on a company’s reputation and bottom line. A study by Glassdoor found that 75% of employees consider a company’s social and environmental responsibility when deciding where to work. Moreover, companies that prioritize social responsibility are more likely to attract and retain top talent.

Challenges for Small Businesses and Startups

Small businesses and startups face unique challenges when it comes to employee activism. With limited resources and a smaller workforce, these companies may struggle to navigate complex social and political issues. Moreover, small businesses and startups may not have the same level of infrastructure and support as larger corporations, making it harder to address employee concerns.

Limited Resources

Small businesses and startups often have limited financial resources, which can make it difficult to invest in diversity and inclusion initiatives, sustainability programs, and other social responsibility initiatives. For example, a small business may not have the budget to hire a dedicated diversity and inclusion officer or to implement a comprehensive sustainability program.

Real-Life Examples

In 2020, employees at Google walked out to protest the company’s handling of sexual harassment allegations. This incident highlights the importance of addressing employee concerns and creating a safe and inclusive work environment. Similarly, in 2019, employees at Amazon spoke out against the company’s climate change policies, leading to the company’s commitment to become carbon neutral by 2040.

Learning from Large Corporations

Small businesses and startups can learn from the experiences of large corporations like Google and Amazon. By prioritizing diversity and inclusion, sustainability, and social responsibility, small businesses and startups can attract and retain top talent, improve their reputation, and contribute to a better world.

Strategies for Small Businesses and Startups

So, how can small businesses and startups navigate the challenges of employee activism? One strategy is to prioritize open communication and transparency. By listening to employee concerns and being transparent about company policies and practices, small businesses and startups can build trust and create a positive work environment.

Creating a Positive Work Environment

Creating a positive work environment is critical for attracting and retaining top talent. This can involve implementing diversity and inclusion initiatives, such as training programs and employee resource groups. Small businesses and startups can also prioritize sustainability by reducing waste, using renewable energy, and promoting eco-friendly practices.

Global Trends and Politics

Global trends and politics are having a significant impact on employee activism. The Black Lives Matter movement, the #MeToo movement, and climate change are just a few examples of social and political issues that are affecting the workplace. Small businesses and startups must be aware of these trends and be prepared to address employee concerns.

Staying Ahead of the Curve

Staying ahead of the curve requires small businesses and startups to be proactive and responsive to employee concerns. This can involve monitoring social media, attending industry conferences, and participating in online forums. By staying informed and engaged, small businesses and startups can anticipate and address employee concerns before they become major issues.

Conclusion

In conclusion, employee activism in the workplace is a growing trend that small businesses and startups cannot ignore. By prioritizing diversity and inclusion, sustainability, and social responsibility, small businesses and startups can attract and retain top talent, improve their reputation, and contribute to a better world. While there are challenges to navigating employee activism, the benefits far outweigh the costs.

Frequently Asked Questions

Here are some frequently asked questions about employee activism in the workplace:

What is employee activism?

Employee activism refers to the practice of employees advocating for social and political causes within the workplace.

Why is employee activism important?

Employee activism is important because it can have a significant impact on a company’s reputation and bottom line. Companies that prioritize social responsibility are more likely to attract and retain top talent.

How can small businesses and startups navigate employee activism?

Small businesses and startups can navigate employee activism by prioritizing open communication and transparency, creating a positive work environment, and staying ahead of the curve on global trends and politics.

What are some strategies for addressing employee concerns?

Strategies for addressing employee concerns include implementing diversity and inclusion initiatives, promoting sustainability, and engaging in open and transparent communication.

Introduction to the Automotive Industry Crisis

Autoworkers at Nissan’s Smyrna Vehicle Assembly Plant in Tennessee, June 6, 2022. The plant employs more than 7,000 people and produces a variety of vehicles, including the Leaf EV and Rogue crossover.
As President Donald Trump’s 25% tariffs on imported vehicles remain in effect despite a pullback this week on other country-based levies, analysts are expecting massive global implications for the automotive industry due to the policies.

Expected Impact on the Industry

They’re expecting to see a drop in vehicle sales in the millions, higher new and used vehicle prices, and increased costs of more than $100 billion for the industry, according to research reports from Wall Street and automotive analysts.
"What we’re seeing now is a structural shift, driven by policy, that’s likely to be long-lasting," Felix Stellmaszek, Boston Consulting Group’s global lead of automotive and mobility, told CNBC. "This may well be the most consequential year for the auto industry in history – not just because of immediate cost pressures, but because it’s forcing fundamental change in how and where the industry builds."

Cost Increase Projections

BCG expects tariffs to add $110 billion to $160 billion on an annual run rate basis in costs to the industry, which could impact 20% of U.S. new-vehicle market revenues, increasing production costs for both U.S. and non-U.S. manufacturers.
The Center for Automotive Research, a Michigan-based nonprofit think tank, believes costs for automakers in the U.S. alone will increase by $107.7 billion. That includes $41.9 billion for Detroit automakers General Motors, Ford Motor, and Chrysler parent Stellantis.

Effect on Auto Stocks and Sales

Both analyses take into account the 25% tariffs on imported vehicles implemented by Trump on April 3 as well as forthcoming levies of the same amount on automotive parts that are set to begin by May 3.
Automakers and suppliers may be able to bear some of the cost increases, but they’re also expected to pass them along to U.S. consumers, which could in turn lower sales, according to analysts.
"We believe the tariffs as proposed will raise the cost of both importing and manufacturing vehicles in the US by at least a low to mid single digit thousand dollar level on average, and we believe it will be hard for the auto industry to fully pass this on, especially with softening consumer demand more generally," Goldman Sachs analyst Mark Delaney said in a Thursday investor note.

Response from Automakers

Automakers have responded to the tariffs in a variety of ways. Manufacturers that are mostly domestic, such as Ford and Stellantis, have announced temporary deals for employee pricing, while others, such as British carmaker Jaguar Land Rover, have ceased U.S. shipments. Hyundai Motor also has said it would not raise prices for at least two months to ease consumer concerns.
Consumer sentiment grew even worse than anticipated in April as the expected inflation level hit its highest since 1981, a closely watched University of Michigan survey showed Friday.

Economic Impact

Sam Abuelsamid, vice president of insights at auto advisory firm Telemetry, expects many automakers have at least a roughly two-month supply of non-tariff impacted vehicles that they will be able to sell down before needing to increase prices due to tariffs.
Telemetry expects the higher costs for production, parts and other factors to result in upward of 2 million fewer vehicles sold annually in the U.S. and Canada, which will have ripple effects on the broader economy.
"A couple million-unit reduction in sales will have a broad impact economically," Abuelsamid said. "That’s driven by higher prices, not just for vehicles, but across the board … which is going to limit people’s’ spending power."

Affordability of Vehicles

Affordability of new and used vehicles has been a problem for several years. On average, Cox Automotive reports new vehicles cost nearly $50,000. That figure doesn’t include the cost of financing such a vehicle, which has risen significantly in recent years in an attempt to combat inflation.
Auto loan rates remain near decades-high levels of more than 9.64% for a new vehicle and nearly 15% for a used car or truck, according to Cox.

Price Increases and Production

"We expect to see declining discounting and then accelerated price increases as the tariffs are passed through and supply tightens, leading to price increases on all types of most new vehicles," Cox Automotive Chief Economist Jonathan Smoke said during a virtual event Monday. "Over the longer term, we expect production and sales to fall, newly used prices to increase, and some models to be eliminated."
Expected price increases vary based on vehicle, but Cox estimates a $6,000 increase to the cost of imported vehicles due to the 25% tariff on non-U.S. assembled vehicles, as well as a $3,600 increase to vehicles assembled in the U.S. due to upcoming 25% tariffs on automotive parts. Those are in addition to $300 to $500 increases as a result of previously announced tariffs on steel and aluminum.

Conclusion

The 25% tariffs on imported vehicles and automotive parts are expected to have a significant impact on the automotive industry, leading to increased costs, higher prices, and reduced sales. The effects of these tariffs will be felt across the industry, from automakers to consumers, and will likely have broader economic implications.

FAQs

Q: What is the expected impact of the 25% tariffs on the automotive industry?
A: The tariffs are expected to increase costs for the industry, lead to higher prices for consumers, and result in reduced sales.
Q: How much are costs expected to increase for the industry?
A: Costs are expected to increase by $110 billion to $160 billion on an annual basis, according to BCG.
Q: Which automakers will be most affected by the tariffs?
A: All automakers will be affected, but those that import a significant portion of their vehicles, such as Jaguar Land Rover, will be particularly impacted.
Q: How will the tariffs affect consumers?
A: Consumers can expect to see higher prices for new and used vehicles, as well as reduced availability of certain models.
Q: What is the expected impact on the broader economy?
A: The tariffs are expected to have a broad impact on the economy, leading to reduced spending power for consumers and potentially affecting other industries that rely on the automotive sector.