ILWU, PMA Likely to Reach New West Coast Contract
Multiple sources directly involved in the ongoing West Coast longshore labor negotiations believe that a deal will be reached in August or September, despite there being several difficult issues yet to be resolved. “The two sides continue to meet and negotiate,” said Gene Seroka, executive director of the Port of Los Angeles. “Both have seasoned negotiators at the table, and each understands their importance to the US economy. I am optimistic that we will have a contract in good order and cargo will continue to flow.” Despite many stakeholders being optimistic, risk remains due to assumptions that major issues can be resolved through negotiation.
Biden Appoints Emergency Board to Intervene in Rail Negotiations
On Friday July 15, President Joe Biden signed an executive order preventing a national strike by US railway workers. The signing of this order avoided crippling an already-stressed containerized supply chain. The executive order prevents the Brotherhood of Locomotive Engineers and Trainmen from striking and 12 other unions from engaging in secondary protest, encompassing 155,000 workers. The White House said, “Keeping supply chains running means keeping America’s railways running,”
A cooling off period will begin giving the Presidential Emergency Board (PEB) 30 days to issue a nonbinding recommendation to the two sides. 30 days will be granted to rail carriers and unions to review the recommendations and come to a deal or declare an impasse, which would extend the date further away.
If you have any questions, please contact your local Noatum Logistics representative.