Epoxy
June 16, 2022
Railroads, Union Negotiations Update
“Ticking Time Bomb” Begins As Major US Railroads, Union Labor Seek Biden Intervention Amid Rail Shutdown Concerns
by Tyler DurdenThursday, Jun 16, 2022 – 05:45 AM
Negotiations between major railroads and their unions have stalled, setting up for what could be a significant railroad shut down before the midterm elections that could paralyze an already-strained US supply chain.
Railway Age reports the National Mediation Board (NMB) on June 14 began what could be a “ticking time bomb” toward a national railroad shut down within 90 days, following its board of three, two Democratic members agreeing with rail labor and NMB’s only Republican disagreeing that means a voluntary agreement to amend unionized rail worker wages, benefits and work rules won’t be achievable.
Talks between rail labor (12 rail craft unions bargaining in two coalitions on behalf of 115k rail workers) and major railroads, including Union Pacific Corp. and BNSF Railway Co., will enter a 30-day cooling period this Friday. Then the Biden administration may appoint a Presidential Emergency Board (PEB) to resolve the dispute.
“The railroads would consider accepting the proffer, but the union leadership has already indicated that it will not,” the National Carriers’ Conference Committee (NCCC), which represents major railroads, said in a statement. “The railroads expect a PEB will be appointed in this dispute before the end of the 30-day cooling-off period, as has been the case in prior unresolved national rail negotiations,” NCCC continued.
Once the PEB is appointed, a second cooling period with a maximum 30-day clock begins. At the same time, the PEB listens to arguments from rail labor and railroads and issues its non-binding recommendations. The third 30-day period is where things could get problematic, just before the elections, and if both parties don’t agree, either side can declare “self-help,” meaning a strike would materialize.
A rail strike would devastate the economy even more, as approximately 28% of freight movement is transported on complex rail networks across the country. Depending on the strike’s duration, supply chains would be further snarled and unleash unwanted inflation.
Let’s hope rail labor and major railroads can agree on wages, benefits, and work rules immediately following the PEB appointment and unions do not resort to a strike in the third 30-day cooling period right before the midterm elections.
June 16, 2022
Railroads, Union Negotiations Update
“Ticking Time Bomb” Begins As Major US Railroads, Union Labor Seek Biden Intervention Amid Rail Shutdown Concerns
by Tyler DurdenThursday, Jun 16, 2022 – 05:45 AM
Negotiations between major railroads and their unions have stalled, setting up for what could be a significant railroad shut down before the midterm elections that could paralyze an already-strained US supply chain.
Railway Age reports the National Mediation Board (NMB) on June 14 began what could be a “ticking time bomb” toward a national railroad shut down within 90 days, following its board of three, two Democratic members agreeing with rail labor and NMB’s only Republican disagreeing that means a voluntary agreement to amend unionized rail worker wages, benefits and work rules won’t be achievable.
Talks between rail labor (12 rail craft unions bargaining in two coalitions on behalf of 115k rail workers) and major railroads, including Union Pacific Corp. and BNSF Railway Co., will enter a 30-day cooling period this Friday. Then the Biden administration may appoint a Presidential Emergency Board (PEB) to resolve the dispute.
“The railroads would consider accepting the proffer, but the union leadership has already indicated that it will not,” the National Carriers’ Conference Committee (NCCC), which represents major railroads, said in a statement. “The railroads expect a PEB will be appointed in this dispute before the end of the 30-day cooling-off period, as has been the case in prior unresolved national rail negotiations,” NCCC continued.
Once the PEB is appointed, a second cooling period with a maximum 30-day clock begins. At the same time, the PEB listens to arguments from rail labor and railroads and issues its non-binding recommendations. The third 30-day period is where things could get problematic, just before the elections, and if both parties don’t agree, either side can declare “self-help,” meaning a strike would materialize.
A rail strike would devastate the economy even more, as approximately 28% of freight movement is transported on complex rail networks across the country. Depending on the strike’s duration, supply chains would be further snarled and unleash unwanted inflation.
Let’s hope rail labor and major railroads can agree on wages, benefits, and work rules immediately following the PEB appointment and unions do not resort to a strike in the third 30-day cooling period right before the midterm elections.
June 16, 2022
More Chlor-alkali Woes
Westlake declares force majeure on chlor-alkali throughout U.S. system
Jun. 15, 2022 8:06 PM ETWestlake Corporation (WLK)OLNBy: Carl Surran, SA News Editor1 Comment
Westlake (NYSE:WLK) -6.2% in Wednesday’s trading, tumbling to its lowest in more than three months, after it declared force majeure on chlorine and all grades of caustic soda throughout its U.S. system, S&P Global Platts reported.
Westlake (WLK) said its chlor-alkali production “has been directly and adversely impacted due to the sudden and unanticipated failures of critical processing equipment,” according to a letter seen by S&P Global.
Westlake (WLK) did not specify the sites affected by equipment failures, but S&P Global said the chlor-alkali unit in Natrium, West Virginia, has experienced equipment issues since concluding a recent turnaround and was operating at reduced rates.
S&P Global also reported the company has faced brine quality problems from a third-party provider at its Geismar, Louisiana, chlor-alkali unit, and has launched a complex-wide turnaround at its Plaquemine, Louisiana, site, including the chlor-alkali facility.
Westlake’s (WLK) force majeure came a day after top chlor-alkali producer Olin (OLN) said its Freeport, Texas, plant would temporarily idle a “significant portion” of its ethylene dichloride and related chlor-alkali production.
June 16, 2022
More Chlor-alkali Woes
Westlake declares force majeure on chlor-alkali throughout U.S. system
Jun. 15, 2022 8:06 PM ETWestlake Corporation (WLK)OLNBy: Carl Surran, SA News Editor1 Comment
Westlake (NYSE:WLK) -6.2% in Wednesday’s trading, tumbling to its lowest in more than three months, after it declared force majeure on chlorine and all grades of caustic soda throughout its U.S. system, S&P Global Platts reported.
Westlake (WLK) said its chlor-alkali production “has been directly and adversely impacted due to the sudden and unanticipated failures of critical processing equipment,” according to a letter seen by S&P Global.
Westlake (WLK) did not specify the sites affected by equipment failures, but S&P Global said the chlor-alkali unit in Natrium, West Virginia, has experienced equipment issues since concluding a recent turnaround and was operating at reduced rates.
S&P Global also reported the company has faced brine quality problems from a third-party provider at its Geismar, Louisiana, chlor-alkali unit, and has launched a complex-wide turnaround at its Plaquemine, Louisiana, site, including the chlor-alkali facility.
Westlake’s (WLK) force majeure came a day after top chlor-alkali producer Olin (OLN) said its Freeport, Texas, plant would temporarily idle a “significant portion” of its ethylene dichloride and related chlor-alkali production.
June 15, 2022
Olin Idling Freeport Production
Olin to idle part of chlor-alkali, EDC capacity at Texas plant on weak demand
Jun. 15, 2022 10:43 AM ETOlin Corporation (OLN)By: Carl Surran, SA News Editor
Olin (NYSE:OLN) -7.1% in Wednesday’s trading after saying it is temporarily curtailing a significant part of ethylene dichloride and related chlor-alkali production at its Freeport, Texas, plant, and epoxy and related upstream inputs production at its Freeport and Guaruja, Brazil, facilities, citing weaker than expected epoxy resin demand in North America and South America.
Olin (OLN) also said it has restarted half of its chlor-alkali unit at its Plaquemine, Louisiana, complex, with the rest of the plant expected to return to operations in early August.
The Freeport facility continues to operate at a reduced level of power generation, and the company expects part of the power generation will be restored in Q4.
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