West Coast Port Dispute Threatens Full Shutdown, Federal Action Needed, Says Industry
The federal government should use all options at its disposal to pressure agreement in a months-long contract dispute at West Coast ports, and if the situation deteriorates President Barack Obama himself may need to intervene, said a wide coalition of importers, logistics services and producers in a Nov. 6 letter to the president (here). Crisis levels of congestion are continuing to severely disrupt port operations, and a full shutdown at the ports may be rapidly approaching, said the coalition, which includes the National Customs Brokers & Forwarders Association of America, other West Coast customs brokers associations, the National Retail Federation and the American Apparel and Footwear Association (AAFA).
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The Pacific Maritime Association and the International Longshore and Warehouse Union sparred publicly in recent days, and each side accused the other of dishonesty and deception (see 1411060025). Prior to the tit-for-tat statements, the two sides did not publicly speak about the contract negotiations since the contract expired on July 1. “The sudden change in tone is alarming and suggests that a full shutdown of every West Coast port may be imminent,” said the coalition letter. “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 AAFA railed against congestion at the ports of Long Beach and Los Angeles specifically in recent days (see 1411040008).
Federal officials should encourage both sides to start collaborating with a mediator through the Federal Mediation and Conciliation Service. If that fails to bring progress and a strike or lockout takes effect, the coalition also urged Obama to exercise an authority granted in the Taft-Hartley Act that would “likely” force the two parties to work with the FMCS. The FMCS facilitated a contract agreement that put port workers back on the job at East and Gulf Coast ports in 2013, said the letter.