L.A/Long Beach Port Strike Causing Ship Diversions, Pressure on Officials to Intervene
Some cargo ships were beginning to divert to other ports as a result of the longshoremen strike that shut down most terminals at the Port of Los Angeles and half of them at the Port of Long Beach, industry officials said. Port users urged negotiators for employers and union workers to resume talks, and some were even seeking intervention by President Barack Obama, citing the potential impact of the strike on the economy since the Los Angeles and Long Beach ports bring in over 40% of the nation's imports. Talks did resume Thursday evening, Nov. 29, between the Harbor Employers Association and ILWU Local 63 O.C.U.
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The terminals were shut down as a result of a strike by clerical workers represented by the International Longshore and Warehouse Union, who have been working without a contract since June 2010 (see ITT's Online Archives 12112929). Longshoremen refused to cross the clerical workers' picket lines. The strike has shut down all but one of the L.A. terminals officials said, and a Port of Long Beach spokesman said half of the terminals there were not operating. He said the closed terminals were Long Beach Container Terminal at Pier F, International Transportation Service at Pier G and Total Terminals International at Pier T. The remaining terminals, SSAT at Pier A, SSA/Matson at Pier C and Pacific Container Terminal at Pier J were operational. All non-container terminals are operational.
Earlier Thursday, negotiators representing employers at the ports urged the clerical workers to return to the negotiating table, and offered to move to mediation, in a statement (here). "The strike has already had a severe impact on the flow of cargo and on jobs in the harbor community, with multiple ships sitting idle at berth or at anchor in the harbor and hundreds of workers in the ports out of work," the Los Angeles/Long Beach Harbor Employers Association said. It said the clerical union had rejected mediation.
Among others, the mayor of Los Angeles called for the parties to meet with a mediator. Port of Los Angeles Executive Director Geraldine Knatz said "it's essential that both sides in this labor dispute return to the negotiating table and resolve this now. We are starting to see ships divert to other ports, including to Mexico. ... In today's shipping environment, we can't afford to lose cargo or our competitive advantage."
The National Retail Federation urged President Obama to immediately engage in the stalled contract negotiations between management and striking union workers, saying a prolonged strike "would have a devastating impact on the U.S. economy," in a Nov. 29 letter from NRF President Matthew Shay. He said Obama should "use all means necessary to get the two sides back to the negotiating table." The President at least theoretically could seek an emergency injunction under the 1947 Taft-Hartley Act, which could require the workers to return to the port during an 80-day cooling off period.
The NRF said the 10-day 2002 West Coast ports lockout led to significant supply chain disruptions, which took six months to remedy, and cost the economy an estimated $1 billion a day. "An extended strike [in Los Angeles and Long Beach] this time could have a greater impact considering the fragile state of the U.S. economy," the letter said (here).
The American Apparel & Footwear Association wrote letters to California legislators (here) Nov. 29 citing the "increasingly dire situation in the ports of Los Angeles and Long Beach." It expressed "grave concern for the economic well-being of our industry, consumers, and country" as a result of the strike. It said 98 percent of apparel and 99 percent of footwear sold in the U.S. is produced globally, and more than 45% of these products come through ports on the West Coast. -- Mike Feazel