Ocean cargo: Shippers may not wait for ILWU to sign labor agreement
Patrick Burnson -- Logistics Management, 7/2/2008
SAN FRANCISCO—Although the six-year West Coast waterfront labor agreement expired Tuesday, negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) on a new contract will continue. Shippers may not be waiting for that to happen, however.
“Most of our members are ready to bypass the West Coast right now,” said Tom Mathers, director of communications for The National Customs Brokers and Freight Forwarders Association. “We learned a lesson the last time the two sides failed to strike a deal, and we won’t be taking any chances this time.”
The Pacific Maritime Association, whose 71 member companies include cargo carriers, terminal operators and stevedores on the West Coast, issued a statement that it remains focused on reaching a new agreement that is fair and reasonable to both sides, while at the same time keeping the ports running smoothly and safely.“We will continue to work as hard and as quickly as possible to resolve remaining issues,” said PMA spokesmen. The ILWU sounded less conciliatory in a message sent to its members:
“The Negotiating Committee wants everyone to dispatch and work normally without any slowdowns or other actions. This will help our Committee manage the negotiations. Please don’t let employers provoke you to take actions that could undermine our strategy to win a good contract.”Industry analysts said that because the union did not agree to a formal extension of the contract and its “no strike” clause, arbitration procedures for resolving workplace disputes remains in question.
The PMA agreed, noting in its statement that such extension “would have sent a much stronger message to the shippers and the public that the West Coast Ports will continue to operate without disruption.”
“Most of our members are ready to bypass the West Coast right now,” said Tom Mathers, director of communications for The National Customs Brokers and Freight Forwarders Association. “We learned a lesson the last time the two sides failed to strike a deal, and we won’t be taking any chances this time.”
The Pacific Maritime Association, whose 71 member companies include cargo carriers, terminal operators and stevedores on the West Coast, issued a statement that it remains focused on reaching a new agreement that is fair and reasonable to both sides, while at the same time keeping the ports running smoothly and safely.“We will continue to work as hard and as quickly as possible to resolve remaining issues,” said PMA spokesmen. The ILWU sounded less conciliatory in a message sent to its members:
“The Negotiating Committee wants everyone to dispatch and work normally without any slowdowns or other actions. This will help our Committee manage the negotiations. Please don’t let employers provoke you to take actions that could undermine our strategy to win a good contract.”Industry analysts said that because the union did not agree to a formal extension of the contract and its “no strike” clause, arbitration procedures for resolving workplace disputes remains in question.
The PMA agreed, noting in its statement that such extension “would have sent a much stronger message to the shippers and the public that the West Coast Ports will continue to operate without disruption.”
Meanwhile, inbound cargo carrier calls have been reduced over the past several months, and a reconfiguration of deployment schedules as a reaction to this impasse could mean even less capacity being placed on the transpacific.
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