From SCDigest's On-Target e-Magazine
- Jan. 7, 2015 -
Global Supply Chain News: New Federal Mediator Brings Hope for Labor Contract at West Coast Ports, as BNSF Suspends Intermodal Traffic two the Region
The FMCS has Proven Track Record, but Tensions on Both Sides Continue to Rise
SCDigest Editorial Staff
After now more than six months after the contract expired between the International Longshore and Warehouse Union (ILWU), which represents dock workers at West Coast ports, and the Pacific Maritime Association (PMA), which negotiates for the port and terminal operators, hope for a breakthrough this week in the increasingly tense environment, as the ILWU agreed to have the talks fall under help from a federal mediator.
All told, some 29 ports are affected, along with some 20,000 dock workers.
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Congestion and delays have risen sharply at West Coast ports over the last few months, from a combination of factors, including what are alleged to be work slowdown tactics by the ILWU |
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The PMA formally asked for help from the Federal Mediation and Conciliation Service on Dec. 22, but the FMSC was powerless to act until the ILWU also came on board with the request. There were reports in November that the ILWU would not sign a temporary contract extension, as the PMA wanted, because that could have led to forced federal mediation.
But the union finally acquiesced to the plan late Monday.
The FMCS said Deputy Director Scot Beckenbaugh, a senior mediator with "extensive experience in this industry," would join the negotiations right away.
Beckenbaugh was involved in settling the lockout by the NHL against hockey players that almost caused the full season to be canceled in 2013.
The FMCS played a critical role in reaching an agreement between International Longshoremen's Association and United States Maritime Alliance relative to East and Gulf Coast ports for a new a six-year contract in March 2013, again after many months of operating without a contract or with extensions to the expired one. It was also involved in settling the 2002 impasse that resulted in a 10-day lockout at West Coast ports.
Created in 1947, the FMCS is an independent federal agency that serves as a neutral third party to mediate such contract negotiations. The FMCS cannot force a settlement, but has a proven track record of getting results in long stalled labor disputes.
The two sides have been operating without a contract since it expired June 30. The talks started relatively amicably, with little or no "war of words," and both sides being largely mum on the status of the negotiations. A potentially contentious issue around healthcare benefits was said to have been tentatively resolved relatively early in the discussions, which many saw as auguring a quick full contract agreement after that.
But that wasn't to be, and the tensions have been building since October, especially with the PMW making its accusations relatively to work slowdowns, which have coincided at minimum with huge delays at most West Coast ports.
Tensions escalated Friday when the union organized a rally in to denounce what it said were PMA moves to lower the number of workers used to unload cargo ships at night, which affected about 800 jobs.
(Global Supply Chain Article Continued Below)
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The PMA said it has had to reduce night shift hours to slow the number of containers filling the yards, due to the congestion.
