Shipping and Logistics
Rail Labor Negotiations Remain Open, Strike Still Possible
Written by Becca Moczygemba
November 22, 2022
The potential for a rail strike still remains after the results of union votes were announced on Nov. 21.
While members of the SMART yardmasters and Brotherhood of Locomotive Engineers and Trainmen (BLET) voted to accept their proposed labor deals, members of the International Association of Sheet Metal, Air, Rail, and Transportation Workers – Transportation Division (SMART-TD) voted to reject their proposed labor contract.
BLET and SMART-TD issued a joint statement that noted, “Under the provisions of the Railway Labor Act, the labor law for workers employed by railroads and airlines, contracts don’t generally expire, they become amendable. After the unions filed their Section 6 notices with the NCCC in November 2019, talks began in January 2020.”
In the same press release, SMART-TD president Jeremy Ferguson expressed a desire to reach a settlement through negotiations and avoid a strike. “A settlement would be in the best interest of the workers, the railroads, shippers, and the American people,” stated Ferguson.
A rail strike could create a potentially difficult situation for the steel industry. As everyone is keeping a watchful eye on the drought and river situation, another hurdle in transportation options would put a kink in the supply chain.
“We’re watching rail negotiations closely, but I don’t think Congress will allow the supply chain to shut down. What’s happening now is like what we’ve seen with the longshoremen on the West Coast. Companies are reporting record profits, so we expected the negotiations to be tough,” Anton Posner, CEO of logistics management company Mercury Resources, told SMU.
We asked SMU survey participants if they were concerned about a potential rail strike and here’s how they responded:
A status quo agreement between SMART-TD and management is currently in effect until Dec. 8, after which SMART-TD members would be permitted to go on strike.
By Becca Moczygemba, Becca@SteelMarketUpdate.com
Becca Moczygemba
Read more from Becca MoczygembaLatest in Shipping and Logistics
Wittbecker: Challenges ahead for container freight in 2025
In 2024, volatility with a capital “V” has been the rule. That will remain high heading into 2025.
Reibus: November flatbed rates cool after October bump
Following the short-lived East Coast port labor strike in October, we now turn toward the Jan. 15 deadline to reach a long-term agreement.
Reibus: Flatbed, dry van rates ticked up post-hurricanes
After closing the third quarter -3.84% on a y/y basis, our first look at fourth-quarter flatbed spot rates puts us virtually flat y/y, coming in at -0.68%.
Leibowitz: Thorny issues remain as ILA-USMX talks kicked into 2025
On Thursday, the International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX), representing carriers and port operators on the East and Gulf Coasts, announced a three-and-a-half-month extension of the recently expired collective bargaining agreement. The extension kicks the can down the road until Jan. 15, 2025, after the 2024 election and the certification of the results on Jan. 6.
Ports strike over as longshoremen reach tentative pact with employers
The International Longshoreman's Association (ILA) union and the United States Maritime Alliance (USMX) reached a tentative agreement on wages on Thursday evening. The move ends a strike at East Coast and Gulf Coast ports that began on Tuesday and that had threatened significant supply-chain disruptions.