THE RAILROAD SAGA CONTINUES, FURTHER INCREASING THE LIKELIHOOD OF A STRIKE AND ILWU OPERATIONS UPDATE

Rail Unions Update

The saga continues as a third union joins in by rejecting a tentative labor deal with US freight railroads. Late Monday evening, the International Brotherhood of Boilermakers (IBB), which represents about 300 workers, rejected the proposed agreement. Late last week, two other unions agreed to extend the potential strike deadline until December 9^th. Rail labor unions continue to criticize the railroads about the lack of paid sick leave. With December 9^th rapidly approaching, the odds of a strike continue to increase day by day, especially now that three of the twelve unions have rejected the agreement. Seven of the other rail unions have agreed with the proposal leaving the Brotherhood of Locomotive Engineers (BELT) and Sheet Metal Air, Rail, and Transportation Workers (SMART-TD). BELT and SMART-TD will announce the results of their internal vote on November 21st. Fortunately, Congress has the ability to prevent or end a strike by extending the cooling-off period in which unions cannot strike.

ILWU Resumes Operation

The ILWU has resumed operation after a brief pause late Monday. On the Monday of this week the International Longshore and Warehouse Union (ILWU) stopped operations at the largest terminal in Oakland. This action appears to be a subtle push on the currently stalled ongoing contract negotiations with the Pacific Maritime Association (PMA). The ILWU and PMA discussions began back in May of this year and at that time appeared to be a top priority of President Joe Biden. The previous contract expired July 1^st, fortunately this timing is typical, and cargo operations continue beyond the expiration of the previous contracts.

If you have any questions, please contact your local Noatum Logistics representative.