Commerce Express Weekly Road Map:
September 3rd, 2024
Keeping you informed on the latest news/insights in our industry.
California Trucking Association Ends Yearslong Legal Fight Against AB5 Law
The California Trucking Association (CTA) is halting its long-running legal battle against California’s AB5 worker reclassification law, which it argues improperly forces independent truck drivers into employee status.
After over four years of litigation, CTA CEO Eric Sauer announced that the group will not appeal a recent federal court decision that rejected their challenge to the law, Transport Topics reports. The 9th Circuit Court of Appeals also denied their request to block the law’s enforcement.
Despite the CTA’s withdrawal, the Owner-Operator Independent Drivers Association (OOIDA), which had partnered with the CTA earlier in the case, has opted to continue its own appeal of the earlier rejections by both the district court and the 9th Circuit, OOIDA President stated, per Transport Topics.
More about AB5:
California’s AB5 Law Now Applies for Trucking: What This Means for the Industry
Commerce Blog
Roughly four months out from the formal start of contract negotiations, Norfolk Southern and BNSF jointly announced promising news: the two U.S. railroads reached tentative, five-year, collective barraging agreements with several unions. Altogether, the upcoming cycle of contract renewals covers about 30 percent of unionized NS workers and 15 percent of unionized BNSF workers.
The early agreements aren’t official, and will need to be ratified by union members, but nonetheless, they are pacts of good faith several weeks out from another round of labor negotiations in North America, a seemingly never-ending saga in the continent’s trade industries.
Canada Labor Uncertainty:
Last Thursday, the Canadian Teamsters (TCRC) filed four separate appeals, contesting the Labor Minister’s arbitration order and the CIRB’s decision to end the lockout and work stoppage, per Freightwaves. Two appeals are related to each railroad. This action follows the union’s pledge to challenge the ruling.
The parties involved have been ordered to binding arbitration and the CIRB has issued an order for no additional strikes/lockouts to occur during this process.
Cross-border (Canada): Canada will impose a 100% tariff on Chinese-made electric vehicles starting October 1st, and a 25% tariff on Chinese steel and aluminum from October 15th, per Freightwaves. The tariffs will cover electric, hybrid vehicles, and Chinese-produced trucks and buses.
Port of Portland: A group of shipping stakeholders have given Oregon Governor a business plan to maintain international container service at the Port of Portland’s Terminal 6. The plan addresses past issues with container volumes and outlines efforts to increase vessel allocations. The port aims to double container volumes at T6 by 2032 and has agreed to raise carrier rates by 16-20% starting in 2023.
This comes after the port planned to cease container services at the terminal by October 2024, after experiencing significant financial losses.
U.S. Labor Uncertainty: The East/Gulf Coast Dockworker contract expires on September 30th, with the International Longshoremen’s Association set to present their final demands and strike strategies to union delegates on September 4-5th. Key issues focus on wage increase and automation concerns.
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