With no resolution in sight to the tense labor stalemate, 29 West Coast ports will sit idle from Saturday through Monday as numerous trade groups and legislators on both sides of the aisle urge President Obama to intervene via the Taft-Hartley Act, which would keep the cargo moving while the sides continue federal mediation.
Port work continued today but was shut down on Thursday, which was a mandated holiday (Lincoln’s birthday) for 20,000 members of the International Longshore and Warehouse Union (ILWU). Across the labor chasm from that group is the Pacific Maritime Association (PMA), representing the port owners, which ordered the shutdown in reaction to what it said was a deliberate labor slowdown by the union.
On Thursday, U.S. Reps. Dave Reichert (R-WA), Kurt Schrader (D-OR), Dan Newhouse (R-WA) and Jim Costa (D-CA) introduced a House resolution which said negotiations between PMA and the ILWU must end quickly. The group also said in the resolution that in the event of a strike or lockout, the Obama administration “must intervene to end the dispute to protect American workers and the national economy.”
Earlier today, U. S. Secretary of Commerce Penny Pritzker told the San Francisco Chronicle that the port shutdown could cost the economy $2.2 billion per day in lost trade.
“This is continuing to impact anyone using the ports, including importers and retailers, and their ability to get products to the shelf,” said Jonathan E. Gold, vice president of supply chain and customs policy for the National Retail Federation. “With Valentine’s Day here and Easter coming up, plus orders for spring items, retailers are being hit hard. And manufacturers are having huge issues getting needed parts for production for items being sold overseas.”
Gold said the NRF has heard that there are 19 freighters sitting at anchor in the ports of Los Angeles and Long Beach, and another 13 off Puget Sound as a result of the West Coast port shutdown. “We’re also hearing from industry groups like the National Meat Institute, which said their initial hit from the port slowdown is $50 million and continuing to increase on a weekly basis,” he said. “And the Washington State Apple Commission said it is being hit for upwards of $10 million per week. It’s definitely impacting a lot of folks.”