EB-5 Risk Alert: Strike continues at American Logistics, disruption spreads

Yesterday afternoon, EB-5 workers declared a strike in protest of unfair labor practices at American Logistics International’s EB-5 transportation project. They maintained their picket line at the company late into the night, and appear determined to continue disrupting company operations today.

ALI Picket Trucks

More alarming, the disturbance has spilled out past the confines of the American Logistics truck yard. Picketers are following American Logistics trucks and picketing the trucks while they work at customer locations dozens of miles away as drivers pick up and deliver shipping containers.

Work stoppages such as this can have significant effects on a company, including disruption of business, loss of profits, and damaged customer relations. It is too soon to tell what the impact on American Logistics will be.

This instability should be of particular concern to EB-5 investors who are depending on the company to maintain the jobs it has created. It is especially troubling given that American Logistics has recently experienced an apparent decline in business and cut back its workforce.

Drivers are striking today in protest of recent unfair labor practices charges. As we have reported previously, these charges prompted a months-long investigation by the National Labor Relations Board. The investigation found evidence that top-level management had engaged in interrogation and other unlawful activities, detailed in the Board’s complaint issued in July.

Today’s strike at American Logistics is an unfortunate result of management’s mistreatment of workers. “We have been trying to get the company to dialogue with us for months,” stated Leslie Richard, one of the striking drivers, “But instead, they have been interfering with our rights to stick together and improve our working conditions. That’s why we’re out here today.”

EB-5 stakeholders should remain vigilant. We will continue to monitor the situation as it unfolds. Stay tuned for further updates.

Previous Posts