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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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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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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USCOC, NAM Oppose More Sanctions on Russia

July 9th, 2014 Haylle Sok Leave a comment

Washington, DC – In a major policy shift, the US Chamber of Commerce (USCOC) and National Association of Manufacturers (NAM), two of the largest business groups in the US, have publicly come out in opposition to the sanctions imposed by the White House on Russia following that country’s February military incursion into neighboring Ukraine.

The groups ran newspaper advertisements last week in several publications including the New York Times, Wall Street Journal and Washington Post, asserting that “the only effect” of additional sanctions would be “to bar US companies from foreign markets and cede business opportunities to firms from other countries.”

Both groups had, previously, confined their opposition to the sanctions in a series of private meetings with Obama Administration officials.

The ads ran under the headline, “America’s Interests Are at Stake in Russia and Ukraine“.

Its text read: “With escalating global tensions, some US policymakers are considering a course of sanctions that history shows hurts American interests. We are concerned about actions that would harm American manufacturers and cost American jobs. The most effective long-term solution to increase Americas global influence is to strengthen our ability to provide goods and services to the world through pro-trade policies and multilateral diplomacy.”

Jay Timmons, NAM president and CEO, wrote, “History shows that unilateral sanctions don’t work. President Reagan recognized this reality three decades ago when he lifted the ineffective grin embargo on the Soviet Union.”

The only effect of such sanctions, Timmons said, “is to bar US companies from foreign markets and cede business opportunities to firms from other countries. It’s time to put American jobs and growth first.”

US workers and industries, wrote USCOC President and CEO, Thomas J. Donohue, “pay the cost of unilateral economic sanctions that have little hope of increasing the United States ability to achieve its foreign policy goals.”

Both the US and European Union have imposed penalties against Russian companies, as well Ukrainian supporters of the separatists with Russian President Vladimir Putin threatening to retaliate against US and European companies if broader sanctions are imposed.

US officials have said that the current sanctions now in place have fueled a record $60 billion capital outflow in the first quarter of this year, as well as losses in Russia’s stock market and currency.

The Ukrainian government, the US and its European Union allies say Russia is fueling the conflict by providing manpower and weapons including tanks and anti-aircraft missiles to separatist rebels in Ukraine.

07/08/2014

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Export-Import Bank Reauthorization Endangered

June 23rd, 2014 Haylle Sok Leave a comment

Washington, DC – The Export-Import Bank of the US (EXIM) is in danger of extinction as incoming House Majority Leader Kevin McCarthy (R-California) has said that he would not support reauthorizing its charter once it expires in September.

McCarthy, speaking on a Sunday news program, said he felt EXIM’s role in guaranteeing loans made to help US companies export their goods “is something that the private sector can be able to do.”

His comments echoed critics of the bank who say the bank creates too much interference in private markets.

According to McCarthy, “One of the biggest problems with government is they go and take hard-earned money so others do things the private sector can do. That’s what the EXIM does.”

If the bank’s charter isn’t reauthorized, it could continue servicing the loans it already has made and backed, but it wouldn’t be able to authorize new loans.

The bank, created 80 years ago, borrows money from the Treasury Department and pays interest on the funds to the Treasury. It then lends that money out and charges a higher interest rate, plus a fee, that generate its revenue.

EXIM has been technically self- sustaining since fiscal 2008, though Congress provides funding for the bank’s Office of Inspector General and sets the bank’s lending limit.

In 2012, lawmakers raised the bank’s lending limit to $140 billion from $100 billion. In fiscal 2013, the bank authorized $27 billion to support an estimated $37.4 billion in US export sales.

EXIM also sent $1.06 billion to the US Treasury, money it earned from interest and fees it charged its customers.

The White House has said that EXIM is critical to helping sustain US exports. Close to 60 other countries have agencies to help finance exports, and supporters of the bank have said that ending the Export-Import Bank would put U.S. companies at a competitive disadvantage.

A number of organizations including the National Association of Manufacturers, the Business Roundtable and the US Chamber of Commerce, as well as a number of large- and small-sized US exporters that have been assisted by the bank are joining forces to push for its reauthorization.

06/23/2014

Federal Mediation OK’d for Stalled Port Labor Talks

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