Labor Secretary, senators urge resolution

Labor slowdown at West Coast ports costing food companies millions each day

By Heidi Parsons

- Last updated on GMT

A container ship docked at the Port of Long Beach, Pier A, before a labor slowdown made this sight much more rare.
A container ship docked at the Port of Long Beach, Pier A, before a labor slowdown made this sight much more rare.

Related tags California

A labor slowdown at 29 US West Coast ports is costing US food manufacturers untold millions of dollars each day, and there is as yet no end in sight.

The slowdown is related to contentious contract negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU). PMA represents the port employers and ILWU represents the dock workers.

The stalemate is hobbling businesses in California and beyond — manufacturers, farmers, retailers and even trash recyclers waiting to receive goods or export products using ships idling at 29 ports along the coast,”​ the Los Angeles Times reported.

“Our estimate is that meat companies are losing $85m a week,”​ Eric Mittenthal, spokesman for the North American Meat Institute (NAMI), told FoodProductionDaily. “That’s counting $40m for meat and poultry and $45m for hides and skins.”

California’s $2.4bn citrus industry has also been hard hit. Industry experts say exports are down 60% vs. two years ago, when growers exported $385m worth of oranges and $109m of lemons, according to media sources.

Political pressure

The slowdown has persisted for nearly two months, despite pressure from industry, US Labor Secretary Thomas Perez, and West Coast mayors, governors and senators. This week, Secretary Perez met with PMA and ILWU representatives in San Francisco to try to bring port employers and dockworkers to an agreement.

California Senators Dianne Feinstein and Barbara Boxer this week sent a letter to PMA and ILWU to press the point. “Every day that goes by without a resolution only adds to the economic pain for the West Coast and the entire country,'' ​they said in the letter. “This cannot continue.”

Furthermore, “The consequences of failing to resolve this dispute immediately would be devastating to our economy and to the millions of people who work hard every day for agricultural producers, manufacturers and other businesses, both large and small, in California and around the world,”​ Feinstein and Boxer wrote.

'Playing havoc with international trade'

California Governor Edmund G. (Jerry) Brown Jr., Washington Governor Jay Inslee and Oregon Governor Kate Brown also issued statements this week, urging PMA and ILWU to resolve the stalemate post haste.

"This impasse is disrupting international trade and jeopardizing thousands of jobs,"​ said Brown. "After nine months of bargaining, to be hung up on what appears to be arcane process issues is unacceptable. Get it done, guys."

"I told Secretary Perez how much I appreciated the attention that he and President Obama are giving this dispute, and that I hoped his direct engagement with the parties would help bring a swift resolution,"​ Inslee said in his statement.

"This impasse has dragged on way too long and is playing havoc with international trade, an essential component of Washington's economy.” ​he continued. ”I understand there are important issues at stake, but it is time to settle before any more damage is done."

Oregon Governor Kate Brown said, "Our local farmers, small businesses and communities in Oregon are in limbo because of the uncertainty surrounding the West Coast and Oregon ports. We urge all parties to rise above their differences and find a common solution to avoid the disruptions that are beginning to suppress our efforts to ensure a strong, growing economy across the state."

Related topics Processing & Packaging

1 comment

Thank you for your coverage

Posted by Rob Reiter,

Thank you for your coverage of this problem. This labor dispute has seen too little news coverage and as a result too little awareness from the public and from business.

I see the ships and I see the trucks as I commute -- the waste and the disruption seems so unnecessary.

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