Los Angeles (Reuters) – Labor Secretary Martin Walsh told Reuters on Tuesday that talks with union workers at West Coast shipping ports to reach a new contract before the old one ends this week are going well and there are no major stumbling blocks. The old contract ends on Friday.
The current contract for more than 22,000 port workers at 29 West Coast ports ends on July 1. Retailers, farmers, and other U.S. shippers are worried that a breakdown in the often tense labour talks at West Coast ports will make it harder to move goods and raise transportation costs, which are already going up because of inflation.
Walsh said that he talks to the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) every week. They say, “Tell me over and over again that we’re in a good place.” It’s getting better, “Walsh said.
The ILWU and the PMA said in a rare joint statement on June 14 that they have no plans for work stoppages or lockouts that would slow down the supply chain even more.
President Joe Biden met with both sides earlier this month. He is trying to deal with problems in the supply chain and rising prices that are making voters unhappy before important midterm elections in November.
When asked if port automation is a sticking point in the talks, Walsh said, “From what I know, there haven’t been any issues that have made either side worried.”
Meanwhile, worried shippers are moving goods away from the West Coast to avoid possible labor-related delays, especially at the nation’s busiest seaport complex at Los Angeles/Long Beach.
This change gives the ports in Southern California, where most ILWU workers are found, a chance to get caught up. But it’s also causing cargo back-ups at East Coast and Gulf Coast ports like New York/New Jersey, Savannah, and Houston.
