More Port Delays Likely if Union Negotiations 'Go Poorly,' Chamber of Commerce Says

If the upcoming negotiations between West Coast ports and their dockworkers’ union “go poorly,” U.S. shippers and traders could face new, worsening logistics delays, the U.S. Chamber of Commerce said May 23. The chamber said “stakes are especially high” for talks between the International Longshore and Warehouse Union and the Pacific Maritime Association, which began May 10 and need to reach a resolution before their contract expires in July (see 2111240052).

The ILWU has “significant leverage” in talks, the chamber said, partly because terminals are “under immense pressure to improve service levels and not have a repeat of last year,” which saw “record” traffic flows and congestion at West Coast ports. But terminals are also seeking to move further toward automation, the chamber said, which could bring U.S. ports in line with the world’s other major modern terminals and help them handle more capacity.

“This issue has created a clear battle line between the port terminals and the ILWU,” the chamber said. “The union views automation as an existential threat to their members’ livelihood by eliminating jobs.” The chamber said both sides are “hopeful” they can reach a new contract and that the negotiations will “not lead to service disruptions, despite history saying otherwise.”

Congress is closely monitoring the talks. Republicans in March asked the administration to use all available tools to help union workers agree to a new contract on time (see 2203170028). A Republican-sponsored bill introduced earlier this year would revise the National Labor Relations Act to define a labor slowdown by port unions as an unfair labor practice and say that labor unions' negotiations against port automation are also an unfair labor practice (see 2203250032).