Federal Mediation OK’d for Stalled Port Labor Talks

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Federal Mediation OK’d for Stalled Port Labor Talks

January 7th, 2015 Haylle Sok Leave a comment

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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ILWU Waves-Off Pleas for Federal Contract Mediation

January 5th, 2015 Haylle Sok Leave a comment

Los Angeles, CA – The International Longshore & Warehouse Union (ILWU) has reportedly waved-off calls for federal mediation to break a deadlock in contract negotiations to end an on-going work slowdown that has handicapped operations at 29 U.S. West Coast ports.

The union, which represents more than 20,000 dock workers at ports from Tacoma to San Diego, has said it wants the 11 members of the board of the Pacific Maritime Association (PMA) to join in the negotiations that have stretched out since a six-year labor contract expired July 1.

The PMA, which represents the shipping lines and terminal operators at the ports, has accused the ILWU of instigating slowdowns since October to gain leverage at the bargaining table.

The union, which denies causing the bottle-necks, has countered saying the terminal operators and shipping lines themselves are largely to blame for bad business decisions that have disrupted port operations.

Chief among these, the union asserts, is the decision to out-source the tractor-trailer chassis used for hauling containers in to and out of cargo terminals from third-party logistics providers.

Last week, the San Francisco-headquartered PMA called for the ILWU to consent to federal mediation to help get the negotiations moving, saying “significant issues” including differences over wages, pensions and work rules “remain unresolved” after seven months of contract talks.

The two sides announced a provisional deal on health-care expenses in late August, without disclosing terms. Another issue is the retention of jobs for dockworkers as automation developments in cargo handling reduces the number of people needed to ‘work’ containerships.

The cargo back-ups at the ports have significantly impacted the flow of nearly half of U.S. maritime trade and more than 70 percent of imports from Asia.

Cargo that normally takes two or three days to clear the ports has faced lag times of up to two weeks, with productivity at some waterfronts cut by at least half, industry analysts say.

Last month, more than 160 associations and industry groups led by the National Association of Manufacturers and the National Retail Federation addressed a 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 letter urged the White House to name a federal mediator to referee the negotiations and break the deadlock, but the White House’s only response to the situation has been a statement released in November stating that the president was “hopeful the negotiations would come to a successful conclusion.”

The statement was in response to an earlier letter from the U.S. Senate delegations representing California, Oregon and Washington state detailing the negative impact of the situation and asking the president to name a federal mediator.

01/05/2015

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Frustration With White House Port Labor Inaction

December 26th, 2014 Haylle Sok Leave a comment

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

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Another Appeal for White House Action on Port Talks

December 18th, 2014 Haylle Sok Leave a comment

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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Pressure Builds on White House to Take Port Action

December 12th, 2014 Haylle Sok Leave a comment

Los Angeles, CA – Pressure is building on the White House to appoint a federal mediator to broker a new labor contract between U.S. West Coast union dock workers and the terminal operators that employ them at 29 U.S. West Coast ports from Bellingham, Washington, to San Diego.

The latest call for action comes from the executive directors of the Port of Los Angeles and the Port Long Beach, as a work slowdown at the nation’s two top-ranking containerports has eroded dramatically since both the Pacific Maritime Association (PMA) and the International Longshore & Warehouse Union (ILWU) ended an unsuccessful round of talks in October.

The PMA has charged the ILWU is filling only about 50 percent of the work orders for skilled equipment operators needed for yard work, while the union insists the admittedly slowed pace is a result of a chronic list of problems that range from working the latest generation of mega-containerships to a shortage of chassis and what they call “terminal mismanagement.”

“Enough is enough. These guys have to get back to work,” said Jon Slangerup, executive director of the Port of Long Beach, at a recent maritime industry event.

Slangerup and Gene Seroka, executive director of the neighboring Port of Los Angeles, have joined a growing number of representatives from both the public and private sectors publicly urging President Obama to name a Federal Mediation & Conciliation Service representative to end the impasse and get both groups to come to an agreement and end the crippling work slowdown.

Over the past several weeks, the two largest industry groups in the country – the National Retail Federation and the National Association of Manufacturers – have ramped-up their efforts to get the White House to act with U.S. Senators and House delegations from California, Washington, and Oregon and the mayors of several cities including Los Angeles and Long Beach have written President Obama urging him to appoint a mediator.

Agricultural exporters have reported the shipping delays are backing up supply lines and creating serious economic damage, hurting their reputation among overseas buyers.

Obama’s only statement on the situation was issued in mid-November, when an Administration spokesman said that the president was “confident the two sides” will reach a contract.

The situation, said Slangerup, “has gotten worse. That should send a clear signal to the White House that it is time for action. The president has to act. It is long overdue.”

12/12/2014

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Port Slowdown Dulls Washington Apple Exports

December 3rd, 2014 Haylle Sok Leave a comment

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

November 21st, 2014 Haylle Sok Leave a comment

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

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Senators Urge ILWU, PMA to Reach Contract Agreement

November 13th, 2014 Haylle Sok Leave a comment

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

November 7th, 2014 Haylle Sok Leave a comment

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.

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 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

October 10th, 2014 Haylle Sok Leave a comment

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

Federal Mediation OK’d for Stalled Port Labor Talks

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