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Federal Mediation OK’d for Stalled Port Labor Talks

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Federal Mediation OK’d for Stalled Port Labor Talks

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Los Angeles, CA –Several of the nation’s largest industry groups are expressing relief with the news that a federal mediator will be assigned to referee the stalled labor contract negotiations between the Pacific Maritime Association (PMA) and the International Longshore & Warehouse Union (ILWU).

The PMA represents the terminal operators and ocean carriers that call at 29 ports on the U.S. West Coast from Seattle to San Diego; the ILWU represents the 20,000-plus dockworkers employed at the ports’ cargo terminals who’ve been without a contract since last July 1.

Reacting to the announcement from the U.S. Federal Mediation and Conciliation Service, Jonathan Gold, vice president of Supply Chain and Customs Policy at the National Retail Federation (NRF) said, “After months of heated rhetoric and increasing cargo congestion, this is the first positive news from the West Coast ports in some time…we sincerely hope the FMCS-supervised negotiations will progress quickly and that final agreement on a new labor contract will be reached relatively soon.”

Robyn Boerstling, director of Transportation and Infrastructure Policy at the National Association of Manufacturers (NAM), called the intervention of a federal mediator “welcome news.”

Commending the PMA and the ILWU for “taking this critical step in order to keep negotiations on track with the goal of reaching a long-awaited agreement between the negotiating parties,” Boerstling said U.S. manufacturers “depend on the ability of West Coast ports to efficiently move cargo valued at 12.5 percent of U.S. GDP and a prolonged slowdown would continue to inflict long-term damage to the economy.”

Both the NRF and the NAM have called for federal mediation since the beginning of the labor negotiations. Last month, the two Washington, D.C.-headquartered groups led a group of 160 national trade groups urging both the PMA and the ILWU to iron-out their differences and end the impasse.

American Association of Port Authorities (AAPA) President and CEO Kurt Nagle also applauded the decision to name a mediator saying, “We believe that federal mediation will result in a fair and equitable agreement, and that without prompt settlement of the issues, our entire nation – not just the West Coast – could suffer long-term, detrimental economic and trade-related impacts from the unpredictability of goods movements through our ports.”

On Dec. 17, AAPA sent a letter to President Obama, advocating that he begin the process of assigning a federal mediator to help the two parties reach an amicable contract agreement. Earlier, the U.S. Congressional delegations from California, Oregon and Washington state, appealed to the White House for intervention in the negotiations.

The ports impacted handled $892 billion in imports and exports in 2013, according to the latest data as work slowdowns by ILWU members at Los Angeles, Long Beach, Oakland, and Seattle – several of the nation’s busiest container ports – have had a huge negative impact on the flow of manufactured goods, agricultural products, and raw materials in and out of the country.

1/07/2015

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Another Appeal for White House Action on Port Talks

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Los Angeles, CA – The American Association of Port Authorities (AAPA) has joined the chorus of national organizations with a letter to the White House urging to appoint a federal mediator to administer the ongoing contract negotiations between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA).

“America’s seaports are absolutely vital to our economy, jobs and international competitiveness,” said Kurt Nagle, AAPA president and CEO.  “At this tender stage of the economic recovery, our nation simply cannot afford disruptions, let alone a shutdown, of any part of the ports system.”

Contract negotiations between the ILWU and the PMA have dragged on since the end of May with work slowdowns at the 29 U.S. West Coast ports affected by the talks significantly cutting into cargo volumes. Particularly impacted are the major ‘load center’ ports of Los Angeles, Long Beach, Oakland, Seattle and Tacoma.

After seven months of labor negotiations without an agreement being reached, he said, “we believe that federal mediation is now necessary to prevent the significant economic repercussions that can occur whenever there is uncertainty and unpredictability in the movement of international commerce through our ports.”

According to the port group, international trade accounts for nearly one-third of the U.S. economy with the country’s seaports handling more than 99 percent of the nation’s overseas imports and exports, amounting to more than 2 billion tons of goods annually.

“This mammoth flow of trade supports more than 13 million American jobs and generates over $200 billion a year in tax revenues. Disruptions to this trade flow hurt American businesses and farmers, cost American consumers and impede America’s ability to compete in international markets,” wrote Nagle.

Over the last several weeks, a coalition of businesses and trade organizations, led by the National Association of Manufacturers and the National Retail Federation, have communicated with the White House urging the President to take action, while Congressional delegations from California, Oregon and Washington have also communicated with the White House calling for executive action.

In mid-November, the White House issued a statement from the President saying that he was “confident” the negotiations would come to a successful conclusion.

12/18/2014

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Port Slowdown Dulls Washington Apple Exports

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Los Angeles, CA – The export of one of the Pacific Northwest’s staple agricultural products – apples – has been severely impacted by the continuing work slowdown by dock workers as labor contract talks between the Pacific Maritime Association and the International Longshore & Warehouse Union continue drag on.

“Individual firms have lost millions of dollars a week in orders. We’re estimating tens of millions of dollars each week throughout the industry,” said Jon DeVaney, president of the Washington State Tree Fruit Association.

“There’s an immediate negative impact on returns to growers and the industry as a whole.”

Every year Washington exports about 30 percent of its entire production to more than 60 countries around the world.

In the 2013-14 crop year the quantity exported was over 37.3 million 42-lb bushel cartons.

This year, the industry produced a huge crop of about 155 million, 40-pound boxes – 35 percent more than usual. Despite the record crop and growing seasonal demand for the fruit, in early November, growers said apples would have to leave port by the end of the month to reach markets in Asia, the Caribbean and the Middle East.

A number of firms, particularly packers, marketers and shippers, he said have been forced to lay off workers or cut hours “because they’re not moving inventory at the rate they planned to.”

DeVaney comments were echoed by Todd Fryhover, president of the Washington Apple Commission, who said the continuing port situation “hurts and continues to hurt. We need to find a solution. It’s having a huge impact.”

12/03/2014

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Shippers Steam as Port Negotiators Take a Thanksgiving Break

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Los Angeles, CA – The International Longshore and Warehouse Union (ILWU) is being slammed for refusing to hold “big table” West Coast labor contract talks during a 12-day break that extends through the Thanksgiving weekend.

“Three weeks after initiating a coordinated series of slowdowns that have plagued the major West Coast ports of Tacoma, Seattle, Oakland, Los Angeles and Long Beach, the International Longshore and Warehouse Union has now taken its slowdown tactics to the bargaining table,” the Pacific Maritime Association (PMA), the other party in the negotiations, said in an angry statement.

As a result of the ILWU’s decision, the PMA said, “the only bargaining through December 1 will be limited to subcommittees discussing “limited” issues.

No Contract Extension

“Making matters worse, the ILWU is refusing to agree to a temporary contract extension – similar to one it signed over the summer – despite multiple requests,” the PMA said.

A contract extension, the PMA said, “would give both parties access to the well-established waterfront grievance process, and most notably would give employers recourse for the ILWU slowdowns that are continuing.”

The Thanksgiving break “and the Union’s refusal to extend the contract are taking place amid continuing worker slowdowns, which began on Halloween in Tacoma and soon spread to Seattle, Oakland, Los Angeles and Long Beach.”

In some ports, the PMA charged, “productivity remains 30 percent or more below normal, as a result of orchestrated ILWU maneuvers.”

This productivity loss, it said, “is distinct” from the congestion that has caused severe congestion at the ports of Los Angeles and Long Beach.

“In fact, those two ports were the only major West Coast ports that experienced congestion prior to ILWU slowdowns, and the ILWU has knowingly made the situation in Southern California worse by failing to dispatch qualified crane operators per longstanding practice – the same skilled workers who can help to alleviate yard congestion,” the PMA said.

National Retail Federation Responds

In reaction to the break in contract talks, the National Retail Federation (NRF) is repeating its call on the White House “to immediately engage the parties to get them back to the negotiating table.”

According to a statement from NRF President and CEO Matthew Shay, “After six months of negotiations we have seen very little progress. It’s time the parties accept a federal mediator to help them bridge the gaps and arrive at a new contract.

Without a contract, he said, “stakeholders cannot work on addressing the ongoing congestion issues at the ports.

The nation’s retailers and our vendors, suppliers and customers are counting on the two parties to act responsibly.”

Earlier this year, NRF and the National Association of Manufacturers released a report that found a shutdown at 29 U.S. West Coast ports from Seattle to San Diego would cost the economy about $2 billion a day.

11/21/2014