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ILWU has tentative deal with PMA on ‘key issues’

The ILWU said on Thursday it had reached a “tentative agreement” with West Coast employers on “certain key issues.” However, the ILWU indicated that a final deal was still being sorted out by the two sides. Hopefully, the two sides can finalize a deal in the coming weeks. 

The ILWU said, “Talks are continuing on an ongoing basis until an agreement is reached.” They did not disclose the issues it had reached an agreement on with the PMA. The statement came as ILWU Local 13 continued with job action that slowed down cargo at the ports.

A coalition of 238 US shippers and transportation interests urged the White House to intervene in the talks last month. The ILWU statement was published as the nominee for Labor Secretary was appearing for her confirmation hearing.

Multiple sources said that the ILWU Local 13 had “red-tagged” cranes at six of the 12 container terminals in LA-LB as being unsafe. Therefore, the equipment was forced to shut down until it could be inspected. This tactic has forced terminals to halt operations for times ranging from an eight-hour work shift to an entire day.

Local 13 is also continuing to delay the dispatch of workers each day to most of the terminals in the port. A source said, “It’s an escalation (of the red-tagging) and a continuation (of the late dispatches.)” It is unknown whether the tentative deal will reduce disruptions.

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IANA warns against reclassification of independent contractors

The International Association of North America (IANA) warned Congress that the expansion of California’s AB5 law could damage the country’s supply chain. The law is set to be published next month. It would eliminate the independent contractor model for truck drivers nationwide. 

The IANA warned that the law would involuntarily reclassify approximately 4.4 million drivers. Additionally, nearly 2.7 million drivers would suffer significant direct income losses.

IANA CEO Joanne Casey said, “Changes to this model could have an adverse effect upon all supply chain participants as well as consumers by increasing costs, reducing service efficiency and reliability, and exacerbating existing driver shortages.”

The reclassification of truck drivers could increase employment costs by up to $61 billion. Additionally, it could risk up to $2.3 trillion in GDP.

Independent contractors invest in and operate their own company. They purchase the equipment and pay the associated operating costs. Therefore, according to Casey, they make a conscious choice to remain an independent contractor.

Some other members of Congress have called the Biden administration’s move to reclassify independent contractors “anti worker.” They say it would limit or eliminate the gig economy, independent contracting, and self-employment.

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About O’Neill Logistics

O’Neill Logistics is a leading third party logistics provider. We operate in California, Savannah, New Jersey. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.

O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.

Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.

Please reach out to us if you have any questions or need assistance with your logistics solutions!