Labor negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) have come to a grinding halt, as has shipment activity along the West Coast’s 29 ports. But the government may soon be stepping in to break up the bargaining log jam.
On Feb. 16, President Barack Obama appointed Tom Perez, secretary for the U.S. Department of Labor, to meet with representatives for both the PMA and ILWU to see if a resolution can be reached, the Los Angeles Times reported.
The government’s involvement in the west coast ports dispute likely comes as welcome news to the National Retail Federation (NRF). Jonathan Gold, NRF vice president, recently issued a statement on behalf of the nation’s retailers, saying that it’s high time lawmakers in Washington start taking action.
“The continued intransigence by labor and management to reach a new contract is unacceptable,” said Gold in a press release. “Retailers and the rest of the supply chain are frustrated beyond belief.”
He added that there’s no one side that’s at fault, as both the ILWU and PMA’s inability to solve the contract stand-off has led to delayed deliveries and severely disrupted the flow of commerce.
“The slowdowns need to end,” he said. “The brinkmanship needs to stop.”
Government forced resolution in 2002
This isn’t the first time that the government has gotten involved in port contract disputes. In 2002, for example, when employers locked out dock workers for 10 days, President George W. Bush invoked the 1947 Tartley-Haft Act. This compelled both sides to settle the matter by any means possible. A new contract was eventually signed, putting an end to the lockout and resuming port activity.
Both the PMA and ILWU say that the contract talks haven’t reached lockout stage, but experts say that there’s a strong likelihood this could happen again. It also has the potential to severely impact the West Coast’s economic vibrancy, as companies are being forced to use other ports.
“The longer we have disruptions at the ports, the more and more people say this is a reason to do business elsewhere,” said Mark Vitner, senior economist at Wells Fargo, according to the LA Times.
The vast majority of exports are shipped from the West. The ports involved in the dispute operate out of Los Angeles, Long Beach, Oakland, Portland, Seattle and Tacoma, among others.
Livingston continues to track the ongoing labor negotiations and will post updates as they become available. We recommend you bookmark our West Coast port updates page and follow us on Twitter to stay up-to-date on the latest.