Over 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 today to urge the administration’s immediate involvement in the ongoing contract negotiations between the International Longshore and Warehouse Union and Pacific Maritime Association.
“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,” National Retail Federation Vice President for Supply Chain Jonathan Gold said. “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.”
The supply chain letter follows the PMA's decision Monday to formally request President Obama appoint 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 (FMCS). The administration has thus far declined to intervene, with officials saying it remains confident the two sides, which have been negotiating without a contract since July 1, can reach an agreement.
The FMCS acknowledged Tuesday it had received the PMA's request.
“FMCS has been closely monitoring these negotiations for some
time and has stood ready to provide mediation services at a moment’s
notice,” the agency said in a brief statement. “In light of PMA’s request, and consistent with the voluntary
nature of the mediation process, FMCS mediators will promptly reach out
to the parties to determine whether and when mediation assistance would
be most valuable.”
The statement went on to say that due to the sensitivity of the
negotiations, the FMCS would have no further comment on the PMA's request, nor would it comment on the status or substance of the negotiations.
Because mediation is a voluntary process, both parties must consent to the process – something the ILWU has thus far declined to do. ILWU's official spokesman could not be reached for comment Wednesday because he was out of the office until Jan. 6, according to an automated email reply to a query from SGB Update.
Should the talks result in a lock out or strike, Obama could invoke provisions of the Taft-Hartley Act to compel both parties to work with a federal mediator. That same provision allows the government to prohibit labor unions from taking work actions that slow commerce during mediation. President Bush invoked the provision to impose federal mediation on the two parties in 2002 after a lockout by PMA essentially shutdown of 29 West Coast ports after a similar impasse. Economists have estimated that cost the U.S. economy $1 billion.
“The administration must act now to appoint a federal mediator as the collective bargaining process has stalled while the congestion crisis continues at the West Coast ports,” Gold said. “For the sake of the U.S. economy, the global supply chain, let alone the president’s own international trade and export agenda, the parties must agree to accept a federal mediator to help settle the stalemate.”
While the PMA and ILWU negotiators continue to meet, Gold said 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,” reads the letter sent to Obama Tuesday. “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.”
