West Coast ports are shutting down as union staff “no show” after a breakdown in negotiations with port management.
The Port of Oakland was shut down Friday morning resulting from insufficient labor for terminal operations, a stoppage that is anticipated to last not less than through Saturday. A source near the situation told CNBC the port shutdowns are expected to spread across the West Coast because of this of lack of sufficient labor as staff protest over wage negotiations in contract talks with port management.
Two of the Oakland port marine terminals — SSA, its largest, and TraPac — were closed as of the morning shift on Friday, said Robert Bernardo, spokesman for the Port of Oakland. Nearly all of imports and exports are processed through those terminals, he said.
While the actions taken by staff should not a proper strike, the source told CNBC to expect stoppages at other West Coast ports as union staff refuse to report for assignments, with operations also reportedly stopping on the port hub of Los Angeles, including Fenix Marine, the APL terminal, and Port of Hueneme, which processes automobiles and perishables — bananas the biggest import in that category. The situation stays fluid, with truck drivers being turned away at Los Angeles sites.
In an ILWU press release, International President Willie Adams said talks have “not broken down” and added “we aren’t going to accept an economic package that does not recognize the heroic efforts and private sacrifices of the ILWU workforce that lifted the shipping industry to record profits.”
The stoppages come at a time when activity at West Coast ports had picked up again after losing volume to the East Coast ports resulting from concerns in regards to the volatile labor situation.
On the Port of Oakland, total container volume increased for 2 consecutive months, with port officials optimistic in regards to the upswing. It’s the eighth-largest port within the country, importing a wide selection of things, from Australian wine and meat, to aluminum from South Korea, and clothing, electronics and furniture from China.
“Given the rise we have seen in business during the last couple of months, we’re optimistic a few stronger second half of 2023 for the quantity of cargo moving through Oakland,” said Port of Oakland Maritime Director Bryan Brandes. “We also anticipate increasing the variety of ocean carrier services offered on the Port of Oakland in the approaching months.”
“Oakland is a giant port for U.S. ag exporters,” said Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC). “Fridays are a giant day for Ag exports.”
Webcams showing no truck activity at Port of Oakland where lack of staff closed terminal operations
The ports and unions have been involved in contract negotiations over the past yr, adding tension to port operations.
On April 20, the Pacific Maritime Association, which represents the ports, and the International Longshore and Warehouse Union, announced they reached a tentative agreement on certain key issues, though they didn’t disclose more.
People conversant in the negotiation process told CNBC on the time that it represented “major progress.” Prior agreements included maintenance of health advantages. But known issues that also needed to be worked out included wages, in addition to safety, automation and pension advantages.
PMA, which represents port management, in a statement on Twitter called the events Friday “concerted and disruptive work actions” by the ILWU.
The ILWU released a press release on Friday saying that rank-and-file staff had taken it upon themselves to “voice their displeasure” amid the continuing “arduous fight” with port management. ILWU said cargo staff at ports “remain on the job,” however the port source told CNBC there may be an insufficient variety of staff overall for port operations to proceed. The ILWU statement didn’t call out wages specifically, but cited “basic requests,” including health and safety, and the $500 billion in profits made by ocean carriers and terminal operators throughout the past two years.
The last work stoppage on the Oakland port got here in early November, when a whole bunch of clerks walked off the job over a pay dispute.
Any port closure creates backups that impact each the pickup and drop off of products by truck drivers.
Truckers also had a piece stoppage related to the AB 5 laws in California covering classification of truckers as employees, a stoppage which lasted for five days, but took two months to clear up. ILWU didn’t cross that picket line.
On the Port of Oakland, over 2,100 trucks undergo the terminals every day, but none are expected through Saturday with insufficient labor to serve the trucks.