railroad strike status update

A nationwide strike involving twelve unions and thirty railroads that could have gone into effect on December 6 has been averted, at least temporarily. An agreement has been reached that extends a cooling-off period to February 10, providing more time for the parties to reach a settlement.

As of December 7, ten of twelve unions have reached tentative agreements with the railroads, however only two of the contracts have been ratified by union members. Expectations are that settlements will be reached and the situation will resolve itself, but if one strikes, others will honor the stoppage.

In the event of a rail strike, incoming ocean cargo from the West Coast will be affected. Leggett's West Coast Distribution Center and extensive logistics network is ready to secure alternative over-the-road transportation, however, the nation's truck fleet will not be able to absorb the large volume of freight that moves by rail.

We will continue to monitor the situation and are making plans that will minimize the impact of a potential rail strike on our valued customers.