Supply chain stakeholders urge Obama to act on West Coast ports

Washington, D.C. – More than 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 Dec. 23 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 U.S. 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 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.”



“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,” said National Retail Federation VP for supply chain Jonathan Gold.



“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.”