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U.S. Labor Secretary Will Watch West Coast Ports’ Contract Talks ‘Very Closely’
Bloomberg March 29, 2022
By Josh Eidelson (Bloomberg) —
U.S. Labor Secretary Marty Walsh said he’ll be closely watching West Coast dockworkers’ contract talks in coming months, and is ready to get involved as needed, amid concerns about potential disruptions that could add to supply-chain problems fueling inflation.
“I don’t foresee an issue today in the negotiation,” Walsh said in an interview Tuesday. “I’ll monitor it very closely, because at the end of the day, the last thing we want to do is see any further disruption. The American people don’t need disruption.”
A labor contract covering about 22,000 West Coast dockworkers, at sites including the pivotal Los Angeles and Long Beach ports, expires on July 1. Some past disputes between the union and management have proved crippling for shipments to the western seaboard, stoking fears of a repeat just as dockyards work to clear backlogs of goods.
Walsh, who has recently visited several ports and met with union and company leaders, said it’s premature to worry about a breakdown in not-yet-started talks. They will involve the International Longshore and Warehouse Union and the employer group Pacific Maritime Association.
“I know a lot of people are concerned about it — and as they should be, because of all of the challenges over the past couple years with getting ships into the country and unloading,” he said by phone. “But I’m not that concerned about it today.” Walsh said that, in his conversations with both sides, “everyone understands the sense of urgency of keeping the ports moving forward and bringing products into the United States.”
The 29 ports on the U.S. West Coast are vital links to the global economy, processing about 44% of all inbound goods and 61% of imports from Asia. In anticipation of possible labor strife, American importers are already looking at alternatives to move their goods through the U.S. Gulf and East coasts, causing bottlenecks at container-shipping hubs like South Carolina’s Port of Charleston.
“I’ll be as involved as they need me to be” in the negotiations, the Labor secretary said. “A month from now you and I might have a very different conversation.”
https://gcaptain.com/labor-secretary-west-coast-ports-contract-talks/
Negotiations To Start Next Month In High Stakes Labor Talks At West Coast Ports
Bloomberg March 26, 2022
By Laura Curtis, Mar 26, 2022 (Bloomberg) –Los Angeles Mayor Eric Garcetti said he expects labor talks to be resolved without significant disruption to the biggest U.S. ports — and an already stressed supply chain — as West Coast dockworkers’ contracts expire this summer.
The negotiations could start as early as next month between International Longshore and Warehouse Union, representing about 15,000 West Coast dockworkers, and the Pacific Maritime Association, made up of roughly 70 companies at 29 ports in the region.
The stakes are high, as the twin ports of Los Angeles and Long Beach are just starting to clear historic backlogs created by pandemic-induced supply chain disruptions. The current labor contract expires July 1.
“We’ve gone through enough shocks to the system,” the mayor said in an interview Friday at City Hall. “We have enough work to do and we have enough capital this time that we should be able to resolve these issues.”
Garcetti said he’s optimistic the two sides will be able to see eye-to-eye, especially considering the amount of cash ocean carriers have to work with this time around, and what he called the labor union’s “reasonable ask” on wages, pensions and health care.
“These companies have never made more money,” said Garcetti, sitting next to a display of a model cargo ship from France’s CMA CGM SA, one of the world’s biggest container lines. Freight carriers, which posted record profits last year, unloaded more than 40% of containerized goods coming into the U.S. at the San Pedro Bay ports.
More:
https://gcaptain.com/negotiations-to-start-next-month-in-high-stakes-labor-talks-at-west-coast-ports/