The possibility of union leaders and West Coast port officials reaching a new labor agreement before the present one expires on July 1 appears slim. Although the unions representing more than 22,000 dockworkers say they are committed to keeping the 29 operations running, historically acrimonious relationships could result in a crippling work stoppage.
“I have confidence that the two parties know what’s at stake here. They will resolve their differences within a reasonable time. It’s not going to be before July 1. But I think we may be looking to a couple of months thereafter. On that front, I’m optimistic,” Port of Long Beach Executive Director Mario Cordero reportedly said.
The International Longshore and Warehouse Union, and the Pacific Maritime Association — representing about 70 employers — both went on the record saying they expect to keep cargo moving while the parties negotiate in good faith. Talks opened on May 10, and at least one contentious issue appears to be driving a wedge. Increased automation is an issue management sees as a way to improve efficiency. Some union officials and workers worry machines will replace jobs.
“I don’t expect a slowdown by labor. For us, we’re certainly better prepared to address any type of scenario than maybe we were a year ago,” Cordero reportedly said.
Port officials also have a strong argument for increased automation. Human-driven loading and offloading processes fail to advance even close to international standards. A recently released World Bank and S&P Global Market Intelligence study that publishes a 370-member Container Port Performance Index gave the Port of Long Beach and Port of Los Angeles low marks. The pair ranked 369th and 370th, respectively.
The union contracts hold sway over the twin ports of Los Angeles and Long Beach, which manage upwards of 42 percent of all containers imported from Asia. And 60 percent of Asian imports travel through West Coast ports, typically handled by union workers.
Labor and management came to blows in 2014, and a nine-month standoff crippled West Coast ports until a deal was brokered in February 2015. The supply chain situation deteriorated to the point former Pres. Barack Obama’s administration intervened.
Over the past two years, Americans have been on a record consumer spending spree even as California’s two largest ports experienced delays that left 110 cargo vessels idling off the coast. Despite bottlenecked ports, ocean shippers, logistics outfits, retailers, and freight carriers posted significantly higher profit margins in 2021. Union leaders see the rising profits and volume as a logical reason workers should also reap economic benefits.
Contract negotiations could not have come at a more fragile period. The peak import season approaches, retailers are scrambling to get ahead of backlogs, and China is poised to restart exports from the world’s largest container port, Shanghai.
Sources: ajot.com, bloomberg.com
So Pres Biden announced that San Pedro Bay ports would operate 24 X 7 last September. Ports had to correct him by saying “umm yeah..no”.. Has there been any increase in the number of hours of operation of these ports since last October? Or is this all a fat lie?