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Frustration With White House Port Labor Inaction

Archives, Global Logistics, Global Trade Daily, News, Ocean Ports

Frustration With White House Port Labor Inaction

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Los Angeles, CA – More than 160 associations and industry groups have addressed another letter to President Barack Obama “expressing our continued concerns with the status of the West Coast port labor negotiations and the impact the ongoing congestion and slowdowns are having on all segments of the economy.”

The groups represent a wide spectrum of U.S.-based manufacturers, farmers, wholesalers, retailers, importers, exporters, and transportation and logistics providers. The letter follows in its entirety:

Mr. President:

“We are seeking your help in moving the negotiations to mediation similar to what occurred during the contentious East Coast port labor negotiations in 2012.

“The labor contract negotiations between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) began on May 15, 2014 and it seems little progress has occurred since the contract expired on July 1, 2014.

Not Close to an Agreement

“While there was optimism with the latest exchange of comprehensive proposals last week, the recent statement by PMA that the parties are not close to an agreement and “remain far apart on several issues” is very concerning.

“Even after continued negotiations through this past weekend, the PMA has now officially asked for a Federal mediator to be assigned to help the parties achieve a final deal.

“It is imperative that the ILWU agree to the use of a mediator. We continue to see significant congestion at the ports which is impacting both imports and exports. While there are many reasons for the congestion beyond labor slowdowns, industry cannot begin to develop solutions until a new contract is finally resolved.

“We are extremely concerned the negotiations will now slip into 2015 and continue to cause problems for all industries that rely on the ports.

The Impact from ‘Congestion and Slowdowns’

“Importers, exporters and others are feeling the impact from the congestion and slowdowns at the ports. There have been daily news stories about the impacts on industries that rely on the ports to get their products to market.

“Retailers have had delays in getting holiday goods to store shelves. Manufacturers have had to slow and even stop production lines due to unavailable components delayed at the ports, creating high-levels of uncertainty for workers and employers who are aiming to deliver products to domestic and global customers.

“Potato farmers and apple growers have missed shipments to overseas markets, potentially closing those markets to future sales. There have even been reports of cancelled Christmas tree shipments to Asian markets.

“The longer these negotiations continue, the greater the negative impact this will have on jobs, down-stream consumers, and the business operations of exporters, importers, retailers, transportation providers, manufacturers, and other stakeholders. Our organizations continue to believe that both parties can reach an agreement that will ensure the continued success and competitiveness of these ports for the foreseeable future. “However, after seven months of negotiations with little progress, we believe federal mediation is needed to help them reach a conclusion.

With an official request from the PMA for a mediator, we urge the administration to work with both parties to appoint a mediator from the Federal Mediation and Conciliation Service (FMCS) in order to help them conclude their negotiations as quickly as possible.”

The letter was endorsed by, among others, the Alliance of Automobile Manufacturers, American Apparel & Footwear Association, American Association of Exporters and Importers, American Association of Port Authorities, American Trucking Associations, California Farm Bureau Federation, Columbia River Customs Brokers and Forwarders Association, Coalition of New England Companies for Trade, Customs Brokers and International Freight Forwarders of Washington State, Fashion Accessories Shippers Association, Food Marketing Institute, Green Coffee Association, Indiana State Poultry Association, Intermodal Association of North America, International Dairy Foods Association, International Warehouse and Logistics Association, Los Angeles Area Chamber of Commerce, Michigan Retailers Association, and the Montana Retail Association.

Also signing the letter were the Motor & Equipment Manufacturers Association, National Association of Manufacturers, National Cattlemen’s Beef Association, National Electrical Manufacturers Association, National Customs Brokers and Forwarders of America, National Retail Federation, National Shippers Strategic Transportation Council, North American Export Grain Association, North American Meat Association, North American Shippers Association, NY/NJ Foreign Freight Forwarders and Customs Brokers, Orange County Business Council, Oregon Department of Agriculture, Pacific Coast Council of Customs Brokers and Freight Forwarders, Pacific Northwest Asia Shippers Association, Texas Cotton Association, The National Industrial Transportation League, United Fresh Produce Association, United States Council for International Business, United States Fashion Industry Association, U.S. Chamber of Commerce, U.S. Meat Export Federation, U.S. Shippers Association, Washington Council on International Trade, Washington Retail Association, and the Wine Institute.

The letter was also sent to all members of Congress, Department of Transportation Secretary Anthony Foxx, Department of Commerce Secretary Penny Pritzker, Department of Labor Secretary Thomas E. Perez, Federal Maritime Commission Chairman Mario Cordero, Federal Mediation and Conciliation Service Acting Director Allison Beck, and the governors of California, Oregon and Washington.

12/26/2014

Archives, Global Logistics, Global Trade Daily, News, Ocean Ports

Senators Urge ILWU, PMA to Reach Contract Agreement

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Los Angeles, CA – Pressure is mounting on the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) to successfully conclude their negotiations to craft a labor contract covering major ports on the U.S. West Coast from Seattle to San Diego.

In a letter sent yesterday, the U.S. senators from California, Oregon, and Washington urged leaders from both the PMA and the ILWU “to continue working together toward a fair and amicable settlement on a proposed collective bargaining agreement.”

The letter, which was sent to ILWU President Robert McEllrath and PMA President and CEO James C. McKenna, was signed by Senators Dianne Feinstein and Barbara Boxer of California, Ron Wyden and Jeff Merkley of Oregon, and Patty Murray and Maria Cantwell of Washington.

“This collective bargaining agreement is important for the health, safety and economic well-being of the 13,600 longshore, clerk, and foreman workers at 29 ports from California to Washington, as well as for companies large and small, agriculture producers, ports, and international buyers around the world,” the senators wrote.

“We strongly urge both the PMA and the ILWU to continue negotiating in good faith to resolve the remaining issues and to swiftly move toward a final contract agreeable to both parties.”

Last week, a diverse coalition including retailers, manufacturers and farmers and other supply chain stakeholders led by the National Retail Federation (NRF) addressed a letter to the White House urging the government’s “immediate involvement” in the contract negotiations.

The coalition called on the Obama Administration “to become engaged in the contract negotiations before a disruption can occur,” and recommended the use of a federal mediator to forestall any threat of a management-directed lockout or labor-initiated strike.

“We believe immediate action is necessary and the federal government’s use of all of its available options would be helpful in heading off a shutdown and keeping the parties at the negotiating table,” the coalition letter said.

The NRF and the National Association of Manufacturers (NAM) issued an economic analysis in June that found a port shutdown would cost the U.S. economy approximately $2 billion a day.

The NRF-NAM analysis estimated that a 5-day stoppage at ports on the U.S. West Coast would reduce U.S. GDP by $1.9 billion a day. This would increase exponentially with a 20-day stoppage resulting in a loss of $2.5 billion a day.

11/13/2014

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White House Engagement Urged in Port Dispute

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Los Angeles, CA – Led by the National Retail Federation, a diverse coalition including retailers, manufacturers and farmers and other supply chain stakeholders has addressed a letter to the White House urging the government’s immediate involvement in the on-going contract negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU).

Port terminal management represented by the PMA and the leadership of the ILWU have held talks since May, but have yet to approve a final agreement on a contract that expired in July, which covers dockworkers at 29 U.S. West Coast ports from Seattle to San Diego.

While the two parties have said they would remain at the negotiating table until a new deal is struck, recent labor activities – most recently at the Port of Seattle and Port of Tacoma – “have led to a noticeable uptick in rhetoric and tensions that is causing the nation’s importers and exporters anxiety and alarm,” the letter said.

“The sudden change in tone is alarming and suggests that a full shutdown of every West Coast port may be imminent,” it read. “The impact this would have on jobs, down-stream consumers, and the business operations of exporters, importers, retailers, transportation providers, manufacturers, and other stakeholders would be catastrophic.”

The coalition detailed what it asserts would be the impact of a port shutdown, including damaging the viability of the West Coast ports and the economic consequences of disrupting the supply chain.

The group called on the Obama Administration “to become engaged in the contract negotiations before a disruption can occur,” and recommended the use of a federal mediator to forestall any threat of a management-directed lockout or labor-initiated strike.

“We believe immediate action is necessary and the federal government’s use of all of its available options would be helpful in heading off a shutdown and keeping the parties at the negotiating table,” the letter said.

The NRF and the National Association of Manufacturers (NAM) issued an economic analysis in June that found a port shutdown would cost the U.S. economy approximately $2 billion a day.

The NRF-NAM analysis estimated that a 5-day stoppage at ports on the U.S. West Coast would reduce U.S. GDP by $1.9 billion a day. This would increase exponentially with a 20-day stoppage resulting in a loss of $2.5 billion a day.

The last prolonged port shutdown of the ports was the 10-day lockout in 2002 which took months to recover from and cost the U.S. economy close to an estimated $1 billion a day.

11/07/2014

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No USWC Port Labor Contract Worries Retailers

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Washington, DC – Import cargo volume at the nation’s major retail container ports is expected to see a final surge and set a new monthly record in October as the holiday season approaches, according to the National Retail Foundation’s monthly Global Port Tracker report.

“Increasing congestion at the nation’s ports, as well as the ongoing West Coast labor negotiations, are ongoing concerns and retailers are making one last push to make sure they’re stocked up for the holidays,” said Jonathan Gold, the NRF’s vice president for Supply Chain and Customs Policy.

“Retailers are working hard to make sure customers can find what they’re looking for regardless of what happens at the ports.”

The contract between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) affecting cargo movement at US West Coast (USWC) ports expired on July 1, prompting concerns among the nations’s retailers and others about potential disruptions that could affect back-to-school or holiday merchandise.

The Washington, DC-based NRF recently sent a letter to the heads of the PMA and the ILWU urging a speedy, successful conclusion to their on-going negotiations.

Dockworkers remain on the job as negotiations continue but the lack of a contract and operational issues “have led to record congestion” at ports from Seattle to San Diego, the industry group said.

“Finalizing a new labor contract is an absolutely critical component to working through the backlog of shipping containers now piling up at West Coast ports,” the letter read. “We are deeply troubled by the fact that no apparent progress has been made in the negotiations since August, when the PMA and ILWU announced a ‘tentative deal’ on health benefits.”

The NRF, the largest retail industry group in the world, chided both groups for their lack of transparency, saying that, “Whether intentional or not, the fact that neither the PMA nor ILWU has made any public progress report in more than a month is sending a very troublesome and disconcerting signal.”

Shippers, the NRF said, “look for certainty when making strategic long-term supply chain investments, or for placing transportation orders for discretionary cargo.”

The ongoing negotiations “and the degradation of operating efficiency, specifically at the ports of Los Angeles and Long Beach, is making the region unattractive for future investment and will lead to a permanent shift of cargo,” the letter concluded.

Import volume at US ports covered by the Global Port Tracker report is expected to total 1.53 million containers this month, topping the 1.52 million monthly record set in August. Cargo volume has been well above average each month since spring as retailers have imported merchandise early in case of any disruption on the docks.

The 1.52 million TEUs (Twenty-Foot Equivalent Unit cargo containers) handled in August, the latest month for which after-the-fact numbers are available, was up 1.5 percent from July and 2.1 percent from August 2013.

The import numbers come as NRF is forecasting 4.1 percent holiday season sales growth and 3.6 percent growth for all of 2014.

Global Port Tracker, which is produced for NRF by the consulting firm Hackett Associates, covers the ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the US West Coast; New York/New Jersey, Hampton Roads, Charleston, Savannah, Port Everglades and Miami on the US East Coast, and Houston on the US Gulf Coast.

10/10/2014

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No Work Disruptions at West Coast Ports, Say PMA, ILWU

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Los Angeles, CA – Despite the failure to hammer out a contract by today’s 5:00 p.m. PST deadline, the Pacific Maritime Association (PMA)  and the International Longshore and Warehouse Union (ILWU) have announced that there will be no disruption of cargo handling activity at 29 ports from Tacoma to San Diego.

Both the PMA and the ILWU issued a joint statement saying that, “While there will be no contract extension, cargo will keep moving and normal operations will continue at the ports until an agreement can be reached.”

The PMA represents terminal operators and ocean carriers with the ILWU representing the 20,000 longshoremen that work the docks at what are some of the busiest container ports in the country.

Both sides, the statement said, “understand the strategic importance of the ports to the local, regional and US economies, and are mindful of the need to finalize a new coast-wide contract as soon as possible to ensure continuing confidence in the West Coast ports and avoid any disruption to the jobs and commerce they support.”

It’s not unusual for PMA-ILWU negotiations at West Coast ports to extend beyond the contract expiration date. The current round of negotiations could stretch through to the end of this month.

“The negotiators will keep negotiating, the workers will keep working,” said Craig Merrilees, spokesman for the ILWU last week. In 2002, a breakdown in negotiations resulted in a 10-day lockout at West Coast ports that resulted in an 11-day port shutdown that analysts said cost the US economy $1 billion a day and disrupted supply chains for six months.

7/01/2014