More than 100 trade groups say they are concerned that a ‘full shutdown of every West Coast port may be imminent.’
Businesses are asking President Barack Obama to help prevent problems at West Coast ports so they do “not escalate to a complete shutdown.”
A letter signed by 105 trade associations, including some of the largest in the country — the National Retail Federation, U.S. Chamber of Commerce, National Association of Manufacturers, and Agriculture Transportation Coalition — noted the International Longshore and Warehouse Union and Pacific Maritime Association have been meeting to work out a new contract since May 15, and have recently put aside a media blackout.
“While the parties to the negotiation stated earlier this year that they would continue operations throughout the negotiations, we have seen crisis levels of congestion at the ports since September,” the letter stated. “Both parties recently issued press releases accusing each other of reneging on this commitment.”
They told the president that “the sudden change in tone is alarming and suggests that a full shutdown of every West Coast port may be imminent.”
The groups wrote that a shutdown would have a “catastrophic” impact on consumers and businesses.
“The threat of a West Coast port shutdown is creating high levels of uncertainty in a fragile economic climate, which has forced many businesses to once again undertake contingency plans that come at a significant cost to jobs and our economic competitiveness,” according to the letter.
The group said a report analyzing a possible port shutdown by the National Association of Manufacturers and the National Retail Federation found that a five-day stoppage could mean $2 billion in daily costs for the economy.
“Our organizations believe that both parties can reach an agreement that will ensure the continued success and competitiveness of these ports for the foreseeable future,” they wrote in the letter. “However, we would like to see an agreement reached without any shutdowns or further disruptions.”
The federal government should “use of all of its available options” to avoid a shutdown, they wrote in the letter. “This includes encouraging the parties to begin working with a federal mediator through the Federal Mediation and Conciliation Service (FMCS),” according to the letter.
They said use of an FMCS mediator helped the International Longshoremen’s Association, which represents dockworkers at East and Gulf Coast ports, reach a new contract with employers last year.
“Even if both parties refuse federal mediation, we believe the FMCS would benefit from beginning to monitor the negotiations,” they told the president.
John Arnold, director of public affairs at the FMCS, said that the agency “has been monitoring the situation and is very much aware of what is going on” in the contract talks between ILWU and PMA. He said the agency needs a joint request from both parties for mediation to be provided.
The 105 businesses that wrote the letter said if a strike or lockout occurs, Obama should use his authority under the Taft-Hartley Act, which they said would likely result in requiring the parties to work with the FMCS.
Businesses ask Obama to help end port interruptions
