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Frustration With White House Port Labor Inaction

Frustration With White House Port Labor Inaction

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.