A coalition of industry groups is seeking federal intervention in port labor negotiations on the West Coast. More than 100 agriculture and business organizations sent a letter to President Joe Biden outlining concerns regarding labor negotiations. The coalition is asking the White House to work with the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) to reach an agreement. The ongoing negotiation process is already taking a toll on shipments leaving West Coast ports.
“As we have witnessed, significant cargo flows have shifted away from the West Coast ports because of the uncertainty related to the labor negotiations. While there certainly are other issues impacting the West Coast ports, many cargo interests have expressly stated that they shifted cargo as a result of the negotiations,” the letter states. “That cargo will not return to the West Coast until after a contract is final and approved by both parties. The longer there is no ratified contract only increases the probability that some portion of the freight will never return to the West Coast ports.”
Signatories of the letter include California Citrus Mutual, American Farm Bureau Federation, and National Milk Producers Council. Especially concerning for the organizations, is the timing of the negotiations and the uncertainty it brings. The peak shipping season will begin over the summer with businesses already making their shipping decisions now.
The letter comes on the heels of several reports indicating that port labor negotiations may be breaking down. PMA alleges that dockworkers at the ports of Long Beach and Los Angeles are creating slowdowns by not staggering lunch breaks. ILWU has also accused PMA of negatively influencing public opinion by highlighting the truck lines at ports. The union indicates that lines are a common occurrence regardless of the situation. The labor negotiations have been ongoing for roughly a year now, with the most recent contract expiring in July 2022.
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