On the heels of a lengthy arbitration period, union negotiators and the major rail companies have settled on a tentative labor agreement to further avoid a strike.
A statement made on Sept. 15 by the US Department of Labor noted, “Moments ago, following 20 consecutive hours of negotiations at the Department of Labor, rail companies and union negotiators came to a tentative agreement that balances the needs of workers, businesses and our nation’s economy. Secretary Walsh and the Biden Administration applaud all parties for reaching this hard-fought, mutually beneficial deal. Our rail system is integral to our supply chain, and a disruption would have had catastrophic impacts on industries, travelers and families across the country.”
Though agreements are subject to ratification, the Association of American Railroads expressed their gratitude in a Sept. 15 press release. “Thanks to the dedication of all members involved in the collective bargaining process, these new contracts provide rail employees a 24 percent wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification, following the recommendations of Presidential Emergency Board (PEB) No. 250,” said the Association.
The agreement will keep supply chains flowing and allow the rail companies to continue providing services to customers across the country, noted Amtrak CEO Stephen Gardner.
Just a day before the agreement was reached, the American Iron and Steel Institute had called on Congress to help to avoid the rail strike, as it would have huge impacts on the nation’s steel industry.
Amtrak also announced on Sept. 15 that they are working to restore canceled trains and accommodate any customers who have already been impacted by the cancelations.
By Becca Moczygemba, Becca@SteelMarketUpdate.com
Becca MoczygembaRead more from Becca Moczygemba
Latest in Shipping and Logistics
SMU Community Chat: Feb. 21 with Anton Posner, CEO of Mercury Resources
Mercury Resources CEO Anton Posner will be the featured speaker on SMU’s next Community Chat webinar on Wednesday, Feb. 21, at 11 am ET. The live webinar is free for all. A recording of the webinar and the slide deck are free for SMU members.
Tampa Steel: Navigating risk, pricing in a volatile trading environment
Just like doing business in any part of the steel supply chain, there are risks and unknowns in trading steel. But trading companies play an important part, helping businesses navigate the risks and unknowns as they pop up.
CRU: Turkish scrap prices continue to rise as supply tightens
Turkish scrap import prices increased for a third consecutive week.
Miller: Pig Iron Market Update
The importation of basic pig iron has allowed EAF steelmakers to implement thin-slab casting technology to make drawing-quality flat-rolled sheet over the last 30 years.
October Import Licenses Sideways, Flat Rolled Permits Decline
US steel imports continue to arrive at a steady pace, as total import licenses in October were about even with September’s import levels.