Work slowdowns and strikes as part of negotiating tactics deployed by the Teamsters against Atlas Air and Polar Air Cargo Worldwide have been ordered to stop by the U.S. Court of Appeals for the District of Columbia.
Teamsters Local 1224 had been organizing slowdowns, sickouts and strikes in an effort to improve its bargaining position. In a unanimous decision, the court ruled it could no longer use those tactics.
In the ruling, the court noted that the Teamsters and Atlas signed a collective bargaining agreement (CBA) in 2011, and that contract prohibited the union from engaging in a work stoppage or slowdown. The companies provide air cargo service for Amazon and other entities.
The dispute arose as Altas’ operations expanded along with domestic e-commerce. This rapid growth led to changes in work conditions and demands of the pilots, the court noted. The relationship between the union and Atlas deteriorated as negotiations to rework the pilots contract dragged on.
The full court filing is available here: https://www.cadc.uscourts.gov/internet/opinions.nsf/23931D59CF3077C28525842E004EF847/$file/17-7172-1795874.pdf
Did you know?
The Freightos Baltic Daily Index, which tracks the price to ship a 40-foot container, is down 2 percent year to date, 3 percent year-on-year and 14 percent over the past five years.
“The first quarter’s weakness was largely driven by weather, destocking and tariff concerns and many of those headwinds continued into the second quarter as well, together with underlying economic/demand weakness robbing momentum from what is a seasonally strong quarter for the group.”
-Ravi Shanker, Morgan Stanley analyst, on expectations for second quarter earnings from transport companies
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Hammer down everyone!