Shippers Beg Biden to Assist Make ILWU Contract Negotiations Go Easily
Because the expiration of the Worldwide Longshore & Warehouse Union (ILWU) shortly approaches, shippers are getting increasingly anxious concerning the potential of contentious negotiations throwing West Coast ports into gridlock like what occurred through the 2014-15 negotiations. Again then, agricultural exports rotted on the docks and import items by no means made it to retailer cabinets for the vacation buying season. The ILWU slowed ports down a lot to achieve leverage on the Pacific Maritime Affiliation (PMA) that it price the U.S. financial system billions of {dollars} and completely misplaced U.S. exporters worldwide commerce companions.
Shippers are so determined to not see a repeat of this case, they’re reaching out to President Biden to step in. They have to be determined to name on fairly presumably the least efficient president in U.S. historical past, who has lengthy depended, alongside along with his political social gathering, on the endorsement and monetary backing of unions just like the ILWU. Is there any likelihood this administration could be arduous on the union if that was required to forestall extra port congestion and resolve contentious contract negotiations?
Apparently some are holding out hope.
The American Attire & Footwear Affiliation (AAFA), Retail Business Leaders Affiliation (RILA), and Journey Items Affiliation (TGA) despatched an open letter to President Biden and Vice President Harris yesterday as a comply with as much as a letter despatched March 1st, which was “signed by 49 associations representing each a part of the U.S. financial system,” to reiterate “assist for a swift and well timed conclusion” to the ILWU-PMA contract negotiations and emphasize how “essential” it’s for the administration “to interact within the negotiations to make sure the wants of each the employees and the ports are met and additional backups, delays, and inflationary prices are averted.”
In actual fact, the AAFA, RILA, and TGA are emphatic within the letter about how this risk of much more port congestion and provide chain disruption will be prevented and the Biden Administration must take motion:
A lot of the chaos of the final two years was unexpected and largely unavoidable, however there is a chance to forestall extra disruptions if a PMA-ILWU settlement is made earlier than the fast-approaching contract expiration on July 1st. We recognize the Administration’s curiosity to reduce provide chain disruptions and we encourage you to proceed to interact and act now.
The organizations even finish the letter by making an attempt to stroke the administration’s ego to induce motion:
The Retail Business Leaders Affiliation, the American Attire & Footwear Affiliation, and the Journey Items Affiliation urge swift motion and constant consideration to this matter, which can safeguard our shared financial positive aspects and shield the progress your Administration has made in addressing provide chain disruption and port congestion.
That final bit concerning the progress the Biden Administration has made in addressing provide chain disruption and port congestion is definitely hilarious. The one huge accomplishment that the administration bragged and bragged about was getting the Ports of Los Angeles and Lengthy Seaside to maneuver to 24/7 operations. They really bragged about it like they’d already gotten the ports shifting 24/7. That was virtually a 12 months in the past, and people ports are nonetheless not working 24/7.
Usually, I’d be onboard with the administration of an American president becoming a member of negotiations between the ILWU and PMA to ensure it goes easily and doesn’t flip expensive for shippers and the U.S. financial system because it usually does. Nevertheless, the whole lot the Biden Administration touches appears to show right into a catastrophe: the Southern Border, Afghanistan, American oil manufacturing, the financial system, studying from a teleprompter, not studying from a teleprompter… President Obama in all probability mentioned it greatest because the Related Press quoted him telling his political allies, “Don’t underestimate Joe’s skill to f**okay issues up.”
It’s arduous each arduous to think about the ILWU agreeing to a brand new contract earlier than the present one expires in just a few weeks. And it’s equally arduous seeing President Biden and Vice President Harris making the state of affairs.
Nevertheless, you’ll be able to’t fault the RILA, TGA, and AAFA for reaching out to the Biden Administration for assist on this state of affairs. Their fears of port congestion and provide chain disruption from contentious contract negotiations are well-founded.
Full Letter
Right here’s the total textual content of the RILA, TGA, and AAFA’s letter, dated June eighth, 2022:
Expensive President Biden and Vice President Harris:
We write to reiterate our assist for a swift and well timed conclusion to the Worldwide Longshore and Warehouse Union (ILWU) and the Pacific Maritime Affiliation (PMA) contract negotiations. As acknowledged within the March 1, 2022, letter signed by 49 associations representing each a part of the U.S. financial system, it’s crucial {that a} ultimate contract is reached that avoids any provide chain disruptions. It’s essential so that you can interact within the negotiations to make sure the wants of each the employees and the ports are met and additional backups, delays, and inflationary prices are averted.
We’re involved the contract discussions have been lately suspended after solely 10 days by the ILWU. Whereas these talks have now resumed, there’s lower than a month earlier than the contract expires and if each events don’t stay on the desk and the present negotiations don’t make significant progress towards an settlement, the implications will exacerbate current provide chain challenges. This can be to the detriment of the U.S. financial system, American importers and exporters, the tens of thousands and thousands of employees they make use of, and the tons of of thousands and thousands of customers they serve. We urge you to encourage each events to stay on the desk till an settlement is finalized as a result of even a comparatively transient port slowdown or shutdown would compound present provide chain challenges and trigger long-lasting injury to client confidence and American companies.
We additionally hope that the Administration, the PMA, and the ILWU will leverage this chance to handle systemic operational challenges at U.S. ports, supporting infrastructure modernization and enabling transparency, information sharing, and interoperability to facilitate end-to-end visibility. These vital points have to be addressed to strengthen U.S. competitiveness, to make sure our provide chains are absolutely ready to assist continued financial progress, and to mitigate potential disruptions sooner or later. As vocal supporters of the Bipartisan Infrastructure Act we hope the administration will prioritize these assets to assist bolster America’s port infrastructure.
A lot of the chaos of the final two years was unexpected and largely unavoidable, however there is a chance to forestall extra disruptions if a PMA-ILWU settlement is made earlier than the fast-approaching contract expiration on July 1st. We recognize the Administration’s curiosity to reduce provide chain disruptions and we encourage you to proceed to interact and act now.
The Retail Business Leaders Affiliation, the American Attire & Footwear Affiliation, and the Journey Items Affiliation urge swift motion and constant consideration to this matter, which can safeguard our shared financial positive aspects and shield the progress your Administration has made in addressing provide chain disruption and port congestion.
Sincerely,
Brian Dodge Michele Marini Pittenger Steve Lamar
President, RILA President & CEO, TGA President & CEO, AAFA
