Longshoremen at the port returned to work Monday after a wildcat strike employers called “extremely disruptive” to operations and retailers said reminded them of the labor issues this time last year at West Coast ports.
The Port Authority of New York and New Jersey said container terminals were back in operation Monday following a wildcat strike by longshoremen on Friday.
Longshoremen went back to work Friday night after walking off the job earlier in the day, but truckers were not able to pick up or drop off containers at the port for the majority of the day.
The port authority said on Monday that terminals had reopened and that free time for all containers not already in demurrage on Jan. 29 at all terminals except Red Hook Container Terminal in Brooklyn would be extended by one day due to the circumstances.
However, the agency reported heavy congestion in Port Elizabeth and was advising truckers to delay calling Maher terminal because of continued congestion.
Terminals in the port shutdown Friday morning as dockworkers left, apparently upset over a number of different issues, according to International Longshoremen’s Association spokesman Jim McNamara. He said these included treatment of workers by the Waterfront Commission, a group that polices the New York Waterfront and regulates the labor supply, as well as concerns about maintenance of chassis, and terminal automation.
McNamara said he was told, for example, that workers returning to the job after disability leave, are sometimes having to wait weeks to receive credentials from the Waterfront Commission that will allow them to resume working. He said longshoremen also want chassis lessors to be members of USMX, the group that negotiates contracts with the ILA.
The New York Shipping Association, which negotiates the local contract with the ILA on behalf of its employers, said unauthorized walkout was “extremely disruptive and in violation of the NYSA-ILA Collective Bargaining Agreement.”
In a statement issued Friday night, the NYSA said an emergency contract board meeting was held at 3 p.m. Friday afternoon, which resulted in a deadlock.
“An arbitrator issued an award finding that the work stoppage was a violation of the no strike provision in the contract and ordering the officers of the ILA and its constituent locals in the port to inform their members of the same,” the association said. “During this time discussions took place between the ILA and NYSA with regard to outstanding issues concerning chassis, jurisdiction, hiring and technology. It was agreed to expeditiously seek solutions to these longstanding issues.The ILA urged their members to return to work and we expect operations to resume this evening.”
The Retail Industry Leaders Association (RILA) expressed dismay about the walkout, saying “the unexpected strike has retailers concerned that a prolonged strike could hamper economic growth and wreak havoc on spring deliveries.”
“A slowdown last year on the West Coast created a logistical nightmare for American exporters, manufacturers and retailers that depend on our nations’ supply chain to move goods across the country,” the industry association added.
“This is déjà vu for retailers, and an unwelcome start to 2016. A shutdown on the East Coast of any meaningful duration will have dire consequences for those dependent on spring inventory deliveries,” said Kelly Kolb, vice president of government affairs for the RILA. “A long-lasting strike would ultimately impact thousands of jobs along America’s supply chain.”
“Given recent unrest in the markets, a self-inflicted wound like this is also the last thing the economy needs,” said Kolb.
McNamara also said some longshoremen appear to be unhappy with the pace of hiring of new workers.
In the last contract between ILA and NYSA, ratified in 2013, the two sides agreed to implement a system to allow relief gangs, similar to a shift system, for longshoremen who load and unload ships. The change is seen as necessary as larger containerships are expected to call the port in coming years, especially after the expanded Panama Canal opens and the Bayonne Bridge is raised.
Over the past 20 months, employers have hired 682 longshoremen, 115 checkers and about 150 mechanics to accommodate growing business.
But in an interview last month, John Nardi, president of the NYSA, said the port needs to hire even more longshoremen if it is to implement the relief gang system. Nardi said employers are still trying to “nail down” how many additional longshoremen will be needed for the shift system, but the number is expected to be about 200-250.
Employers are continuing to interview potential workers “especially veterans, and send them to the Waterfront Commission for prequalification so that when we’re ready to start to hire for the relief gang system we already have people in the pipeline,” he said.
Dockworker walk-out at Port of New York and New Jersey stokes shipper fears
