LA/Long Beach Rail Union Reaches Labor Agreement Far in Advance

TraPac rail terminal, Port of Los Angeles (File image courtesy Port of LA)

PUBLISHED JUL 14, 2024 2:16 PM BY THE MARITIME EXECUTIVE

 

 

In an era of contentious labor relations in the ports sector, news of an amicable and timely contract negotiation is a rarity - but the Brotherhood of Locomotive Engineers and Trainmen (BLET) and the rail line for the vital San Pedro Bay port complex have achieved it. The two sides have announced that they have ratified a three-year extension of their current collective bargaining agreement, far ahead of deadline. 

The extension is retroactive to May 1 and extends through September 2027. It includes a "fair" 13 percent raise over three years to offset inflation, and a continuation of the current employee contribution levels for health benefits.  The 145 employees of the Pacific Harbor Line (PHL) approved it by a margin of nine to one on Friday. The cooperative tone of the joint announcement was a departure from the combative note sounded by other port unions and employer bargaining associations, and it focused on the need to ensure the success of the twin ports of LA and Long Beach - collectively, the biggest container-freight gateway in the United States.

"This is a great win for the organization and our members," BLET General Chairman Brian Carr  said. "The contract contains no changes to our health and medical plan and provides 13 percent wage increases over two years. PHL and the organization have worked well together through this process to ensure no disruptions."

PHL provides carrier-neutral transportation, maintenance, and dispatching services to the Ports of Long Beach and Los Angeles, including dispatching for all BNSF and Union Pacific trains on the 100 miles of rail line in the port complex. The high-capacity trains are essential for the success of LA/Long Beach: they transport millions of containers a year from San Pedro Bay to inland markets, particularly in the Midwest. 

While BLET has had a contentious relationship with national Class 1 railroads, including a near-strike in 2022, PHL is a subsidiary of an independent regional/local rail holding company and has not been affected by previous disagreements. 

"Our employees are the backbone of our operations. This CBA extension ensures that they are fairly compensated and that we maintain a safe and reliable rail network," PHL President, Otis Cliatt II. "It also prevents any potential disruption to the Ports of Los Angeles and Long Beach operations, which are critical links to our economy."

In January, PHL agreed to a bonus program that will pay its union employees up to $18,000 in retention bonuses if they stay with the rail line for the next two years - and if PHL is picked to carry on as the switching company for the Ports of LA and Long Beach from 2026 onward.