By Nathalie Voit
Workers across all sectors of the U.S. economy appear bent on unionizing. From railway to port workers, the transportation and logistics industry is reporting its highest share of labor unrest in years.
The latest threat to domestic supply lines originates in the western part of the country, specifically in California, Oregon, and Washington maritime states. There, about 22,000 longshoremen and their union representatives, known as the International Longshore and Warehouse Union, or ILWU, have threatened to go on strike unless their labor demands are met. Unfortunately for the rest of the country, those workers control about 40% of all U.S. imports. The dockworkers’ union represents some of the nation’s largest trade hubs, such as the Ports of Los Angeles and Long Beach. In total, the ILWU represents workers across 29 West Coast ports.
Given the highly strategic importance of the ports to the rest of the supply chain, any further disruption at the docks due to organized labor would be–at the very least–a major setback for the U.S. economy (the nation’s ports are still reeling from staffing shortfalls and congestion related to the COVID-19 pandemic).
In a show of good news, the ILWU and the 70+ employers belonging to the Pacific Maritime Association (PMA) vowed to continue negotiations despite failing to reach a resolution on July 1. The parties had until the first of the month to work out a new labor contract that covered dockworker wages, working conditions, and benefits for the upcoming year (Bloomberg reported that talks often go beyond their expiration date).
In a joint statement issued before the deadline, both parties reaffirmed to the general public neither side is planning to strike or lockout.
“While there will be no contract extension, cargo will keep moving, and normal operations will continue at the ports until an agreement can be reached between the Pacific Maritime Association and the International Longshore and Warehouse Union,” the ILWU and the PMA said.
“Both sides understand the strategic importance of the ports to the local, regional, and U.S. economies and are mindful of the need to finalize a new coast-wide contract as soon as possible to ensure continuing confidence in the West Coast,” the parties said.
An agreement is now expected to be finalized in the August-September time frame.
In other supply-chain news, feed users in California and the Southwest are close to depleting grain stockpiles.
Commenting on the current railroad bottlenecks, National Grain and Feed Association Chief Economist Max Fisher said:
“Some people are having a hard time getting timely service, and if they do get their shipment, it might be smaller than expected. There’s just not enough grain that’s moving by rail.
“Facilities that process grain aren’t receiving enough to satisfy demand. Some of them are going offline from time to time.”
