Out-of-stock shock

Dock labor woe spurs heightened supply fear

US companies fear a repeat of last summer’s supply-chain chaos — that left store shelves empty and fueled higher prices — as contract negotiations between longshoremen and operators of the nation’s largest ports remain adrift.

The contract between some 22,000 dockworkers at 29 ports along the West Coast — represented by the International Longshore & Warehouse Union — and the Pacific Maritime Association, composed of ocean carriers and port operators, expires at the end of this month.

“The entire industry is on pins and needles,” said one manufacturer who ships goods to the West Coast from China. “This is a looming crisis, and we’re hearing and reading nothing about any real progress on this and no messaging from the White House.”

After several weeks of negotiations, the ILWU temporarily halted the talks from May 20 to June 1 without disclosing a reason for the break, according to a Journal of Commerce report.

Labor fears automation

One of the hot-button issues is whether to install new technology to automate some functions. The union is opposed, fearing more automation will eliminate jobs. Port operators are pushing for the change to increase efficiency.

“Automation does two things: It makes the companies rich and the longshoremen unemployed,” said Harold Daggett, head of the International Longshoremen’s Association — which is not part of the ILWU negotiations.

A fiery speech by Daggett posted on YouTube May 13 added to anxiety that ships will start to pile up again in the Pacific Ocean.

“Make no mistake about it, automation doesn’t improve productivity. It destroys lives and livelihoods. And we will stand with the ILWU to fight tooth and nail,” Daggett, who represents 65,000 dock workers along the East and Gulf coasts, railed.

The Port of Long Beach declined to comment. The executive director for the Port of Los Angeles, Gene Seroka, did not respond for comment. Together those ports represent more than 40% of the container traffic into the US.

ILWU President Willie Adams declined to comment, citing an agreement with the PMA not to discuss negotiations with the press.

However, neither side has tipped its hand about how the talks are progressing — and the two-week halt after Daggett’s fiery rhetoric is not reassuring, industry experts said.

The entire industry is on pins and needles. This is a looming crisis and we’re hearing and reading nothing about any real progress on this. — A manufacturer who ships goods to the West Coast from China.