Stakeholders Call On President To Engage In West Coast Ports Contract Dispute

After months of talks, the two sides have made very little progress, yet have succeeded in disrupting the global supply chain, increasing port congestion, and delaying shipments.

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Over 160 national, state and local trade associations and organizations – representing the interests of the global supply chain and local communities – wrote to President Barack Obama to urge the administration’s immediate involvement in the ongoing contract negotiations between the International Longshore and Warehouse Union and Pacific Maritime Association. The ILWU and PMA have been negotiating a new labor contract, which covers dockworkers at the 29 West Coast ports.

“The supply chain community is united in its call on President Obama to appoint a federal mediator to help the parties resolve the ongoing contract dispute,” National Retail Federation Vice President for Supply Chain Jonathan Gold said. “After months of talks, the two sides have made very little discernible progress toward a new contract, however they have succeeded in disrupting the global supply chain, increasing port congestion for importers and exporters, delaying shipments for retailers, manufacturers, farmers and others, and potentially harming the long-term competitiveness of the West Coast ports.”

The supply chain letter follows PMA’s official request for the appointment of a federal mediator to assist in the contract negotiations, and compliments an earlier letter to the White House in November, which called on the administration to consider appointing a mediator through the Federal Mediation and Conciliation Service. To date that request, as well as several others made by shippers and stakeholders, has gone unanswered.

“The administration must act now to appoint a federal mediator as the collective bargaining process has stalled while the congestion crisis continues at the West Coast ports,” Gold said. “For the sake of the U.S. economy, the global supply chain, let alone the president’s own international trade and export agenda, the parties must agree to accept a federal mediator to help settle the stalemate.”

The ILWU and PMA have been negotiating a new labor contract since mid-May. The previous contract expired on July 1, 2014. Even though the two sides have been meeting regularly, recent reports of labor slowdowns and increasing port congestion have alarmed the supply chain community and raised fears of a potential port shutdown.

“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,” the letter said. “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.”

NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s This is Retail campaign highlights the industry’s opportunities for life-long careers, how retailers strengthen communities, and the critical role that retail plays in driving innovation.

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