September 15, 2022

One day before the rail strike deadline that put business owners and the nation’s economy on edge, the White House announced a tentative deal to avoid a freight shutdown. Anywhere from 60,000 to more than 100,000 rail workers were prepared to strike this Friday for reportedly the first time since 1992.

The deal includes a 24% wage increase over the five-year period from 2020 to 2024 and five annual lump sum payments of $1000, according to the National Carriers’ Conference Committee. “These rail workers will get better pay, improved working conditions and peace of mind around their health care costs: all hard-earned,” President Joe Biden said in a statement.

Under the agreement, union members also will get an immediate wage increase of 14%, health care costs will freeze and union members will have voluntary assigned days off, the unions said. The deal must still be voted on and approved by member rail unions. It is not clear when this will happen or how long it will take, but workers have agreed not to strike while the vote is tallied, according to the New York Times.

Negotiators from rail worker unions and railroads spent roughly 20 hours negotiating at the Labor Department Wednesday. Rail workers threatened to walk off the job due to poor sick time, work schedules and compensation. Until today, workers had not received a raise since 2019, according to ABC News. “They want railroads to increase staffing—the major railroads have cut nearly one-third of their jobs in the last six years—and to ease strict attendance policies that make it difficult to take time off,” the article reads.

The National Carriers' Conference Committee represents management at over 30 railroads and the Coordinated Bargaining Coalition is made up of a dozen rail labor unions. Nine of 12 unions made deals as of Wednesday, while three others remained at the bargaining table until today, reports AP News.

Though the strike is averted for now, it raised serious questions about supply chain and economic resilience, and was a reminder of just how fragile both of those are. A railroad shutdown would have exacerbated existing supply chain issues, bolstered inflation and cost the U.S. economy $2 billion a day, according to the Association of American Railroads (AAR). “The lost output would harm manufacturers, distributors, retailers and consumers; it would mean increased fuel consumption and greenhouse gas emissions; and it would have a strong negative impact on our nation’s taxpayer-funded highway system,” per AAR.

Rail freight is both cost and time effective to transport goods, energy products and agricultural goods—and if workers decided to strike, other means of transportation would not be able to pick up the slack. Up to 467,000 trucks per day to keep up with rail freight—and given the current truck shortage, there would not be enough drivers to handle the amount of daily transport of goods, per AAR. Approximately one-third of U.S. grain exports, half of all U.S. fertilizer and more than 75% of finished vehicles are all delivered by rail.

Industries most vulnerable to a rail shutdown include agriculture, energy, auto and retail, per AP News. “Car buyers might not get the vehicle they want on time, commuter rail lines could see service disrupted, and shipments from everything from oil to livestock feed could be snarled.”

Four of the largest U.S. railroads (Norfolk Southern, Union Pacific, BNSF and CSX) started limiting service earlier this week in preparation of the strike—issuing embargoes on certain materials and automotive traffic. “We must ensure that hazardous and other security-sensitive freight is properly secured so it is not left stranded in the event of a sudden strike,” Norfolk Southern said in a service update.

Quiet quitting. Corporate coasting. Reverse hustle. These are just a few of the many terms coined in recent years to describe workplace dissociation and burnout. Burnout is a state of mental, emotional and physical exhaustion as a result of repetitive or long-term stress, normally from work.

About 49% of U.S. employees say they are burned out from their jobs, according to a survey by Eagle Hill Consulting LLC. And 63% say that staffing shortages are contributing to employee burnout. “Employees who remain on the job are feeling the sting of the Great Resignation,” said Melissa Jezior, president and CEO of Eagle Hill Consulting. “Just a few months ago, the pandemic was a driver of employee burnout, and now we’re seeing staff shortages as a major culprit of worker stress.”

Here are some ways to overcome workplace burnout and motivate yourself and your staff at work.

Tip #1: Strive for Connection

When you see members of staff struggling with burnout, one of the best things you can do is to reach out. “The key here is that I get them talking—I let them be heard,” said Valerie Hardesty, CCE, CICP, director of credit at Elevate Textiles, Inc. (Charlotte, NC). When she sees her team losing motivation, she organizes informal one-on-one meetings to better understand their situation and find ways to re-motivate them.

Another way to connect is with proactive communication. Eve Sahnow, CCE, corporate credit manager at OrePac Holding Company DBA OrePac Building Products (Wilsonville, OR), meets with her team every day despite working on a hybrid schedule to stay connected.

Wendy Mode, CCE, CICP, division credit manager at Delta Steel, Inc. (Cedar Hill, TX) also makes a point to connect with staff daily. “I’d sit at their desks and help them work—I’m in the trenches with them, which made them feel more as a team,” she said.

Sometimes the connection can be anonymous. DeAnna Leahy, CCE, NACM chair elect and corporate credit manager at Sunroc Corporation (Orem, UT), uses an engagement survey to gage how the company is doing as a whole which helps her company improve in multiple areas.

Tip #2: Celebrate Successes

Leahy’s department hosts a monthly meeting and rewards employees with a $25 gift card from a hat draw. Employees read shout outs as recognition for a job well done. “Find out what motivates your staff and what they like to be rewarded with to keep them engaged,” Leahy said.

The reward for successes can be as big or small as you see fit. “We try re-motivating them by just scheduling a team lunch or a team happy hour and getting them out of the office, which makes them feel appreciated,” Mode claimed.

Tip #3: Create Challenges

If you feel your staff is checking out, you need to create challenges that will keep them engaged. “For your staff, you have to provide challenges, let them make decisions and support them in those decisions,” Leahy suggested.

Mode likes to challenge her staff by mixing up portfolio assignments so that they’re talking with new sets of customers. “I include graphs to show them their numbers. If numbers go down, as far as the past due receivables, they keep going. If they spike, they have to step their game up,” she added.

Sahnow motivates her staff by making them a part of the decision-making process. “It gives them a sense of ownership and empowerment, which helps the department and prevents burnout.” Her company also cross-trains and strives for higher education. “With the NACM Unlimited Webinar Program, employees have new information that they can share after attending sessions on a variety of topics,” she added.

Tip #4: Take a Break

If all else fails, slow down. Cancel plans, practice self-care or do nothing at all. Make use of your vacation and personal days allotted by your company. Engaging in physical activities helps too. “I take personal time to do yoga, hike and meditate, but everybody will find a different activity to suit their personal needs,” stated Leahy.

Mode will offer her staff a couple days to clear their heads if she notices they need it. “I want to reassure my staff that we’re here to help them,” she said.

Mary Moore, CBA, director of credit at SouthernCarlson, Inc. (Omaha, NE), focuses on maintaining a healthy work-life balance. “When I feel myself losing motivation, I think of the future, like a possible vacation. Really anything to look forward to.”

Tip #5: Reflect

Another way of overcoming burnout is journaling. “I re-evaluate my priorities and remind myself of the ways that my contributions benefit the company,” Hardesty shared. She finds it helps to make a pros and cons list.

“As department manager, you must think beyond yourself and be cognizant of what your staff needs and help them with that,” Sahnow said. She also believes managers must be able to adapt. “One of the biggest challenges in the world today is how to adapt. How do you constantly adapt to make sure that the people that are relying on you feel supported and motivated?”

Contact Tracey Lerminiaux, director of education services, at This email address is being protected from spambots. You need JavaScript enabled to view it. to find out more about the different Thought Leadership Groups that NACM National has to offer.

Fraudulent activity of all kinds in B2B trade has been on the rise over the last several years as bad actors take advantage of the newly virtual business environment. In particular, nearly half (49%) of credit professionals have seen an increase in fraud attempts during the new customer setup process, according to a recent eNews poll.

“Traditionally fraud came from existing accounts, but as we’ve gotten better at catching those, the newest wave seems to be fraudulent applications,” said one NACM member. “On the application, these fraudsters are providing just enough accurate information to make it look realistic, while slightly changing letters or acronyms.”

A few of these fake accounts made it through the entire process at one credit professional’s department, and her team has since been on high alert. “We are operating on heightened security. Our team has been checking independent sources to verify information of the company applying for credit and contacting the company directly. We check to see if the person applying is truly their employee.”

Other than independently verifying information, the credit professional recommends involving the local sales or credit department that work in the area where the application is from. “You cannot rely on just people’s titles and names anymore because that information can easily be taken.”

Networking is another tried and true strategy for catching fraud. By participating in NACM industry groups and meeting with other credit professionals, one member was able to “compare notes and realize a pattern of one person attempting to set up an account and purchase copper wire from multiple businesses,” she explained.

If you are unsure about a credit application, it is always best to order a credit report from a trusted organization. NACM’s National Trade Credit Report (NTCR) is your one stop shop for reliable credit information. “As a credit detective, my ability to put the clues together for a good credit decision just got a whole lot easier,” wrote Norman Zusevics, CICP, credit manager at Shure (Niles, IL).

NACM is highly selective about what information is accepted for the NTCR so no fake data slips through the cracks, said Anton Goddard, president of NACM South Atlantic (Orlando, FL). “In the past three years, we’ve seen more attempts from fraudsters to try and submit fake data than ever before. The trend we’ve seen recently is companies that open internet stores try to entice people to open an account with 30-day terms and then try to report that information to NACM, but we are not accepting trade data from these people for credit building purposes.”

Digital fraud skyrocketed 60.5% in the financial services industry between 2019 and 2021, largely due to the shift toward digitization, according to the 2022 Global Digital Fraud Trends from TransUnion. “We have seen a massive jump in fraud attempts during the new customer setup process as we started offering an online credit application,” an NACM member said. “Traditionally, someone would come into a branch, call or email and ask for an application. But now [new customers] can just go online and that is where they have been able to easily put in fraudulent information.”

As new types of fraud emerge, “you will need to change your processes accordingly as you learn new ways these people are going to commit fraud and remain flexible to catch every new attempt,” she added.

With what appears to be an upcoming downturn in the economy, I anticipate an increase in bankruptcy filings. Those likely will not materialize until sometime in 2023 or into 2024, but keep in mind many of those projects are getting ready to start now. So, protecting your rights now ensures when that day comes, you are prepared.

“The customer filed bankruptcy.” These are words no credit professionals want to hear. Before you throw your customer’s account into the trash, know that not all is lost. If you have anticipated the possibility of a bankruptcy and taken steps to preserve your mechanic’s lien and payment bond rights, it is very likely you will still collect the full balance you are owed.

When your customer files bankruptcy, your chances to collect anything from your customer is extremely limited. The moment your customer files bankruptcy you are automatically prevented from taking any action to try and collect from your customer. This is known as the “automatic stay” and it applies the second your customer files for bankruptcy. If your customer has assets, the bankruptcy court may order them sold and the proceeds distributed to creditors. This too is somewhat rare and assets are usually extremely limited.

While the automatic stay applies to your customer, it does not apply to others, like the owner of the project (assuming the owner is not also your customer) or the payment bond surety. This is why you should always be serving preliminary notices. If you have preserved your mechanic’s lien rights by serving your preliminary notice, you can still record your mechanic’s lien and foreclose on your mechanic’s lien without violating the automatic stay. This is because the mechanic’s lien is recorded against the property where the project is located, which is not part of the customer’s bankruptcy, and therefore not included in the automatic stay. Properly perfecting your mechanic’s lien rights and filing your lawsuit to foreclose on your mechanic’s lien in a timely manner when your customer is in bankruptcy will be the difference between getting paid in full, or not at all.  

On public and federal projects, you also can pursue the Miller Act or Little Miller Act payment bond surety without violating the stay. This is because, like the mechanic’s lien, the payment bond issued by the surety is not part of the bankruptcy and therefore not subject to the automatic stay. Like with your mechanic’s lien, the key is to ensure you have preserved your rights by meeting your notice prerequisites and timely filing your claim. 

While a bankruptcy filing by your customer makes collecting the balance owed on their account more difficult, if you have preserved your mechanic’s lien and payment bond rights, you have significantly increased your chances of collecting most, if not all, of your customer’s account.