Retail associations have responded to news that the International Longshore and Warehouse Union (ILWU) has ratified a five-year labor contract with the Pacific Maritime Association (PMA), covering dockworkers at 29 ports on the West Coast.
Organizations such as the National Retail Federation (NRF) expressed relief at the prospect of greater stability over the next five years, while calling on future negotiators to begin talks earlier, before contracts expire.
“The past year was fraught with disruptions, slowdowns, and partial shutdowns,” says Jonathan Gold, vice president for supply chain and customs for the NRF. “This is something we will no longer tolerate. The world is changing, and our ports must adapt to ensure they provide shippers with the predictability and stability they need. We can no longer accept last-minute negotiations and months and months of talks, while slowdowns and stoppages disrupt the global supply chain and international trade.
“Negotiators need to begin their talks early enough to have an agreement in place well before another contract expires without active or passive threats to the economy and the millions of jobs dependent on our nation’s ports and supply chain. The current process is impractical and unsustainable and fails to meet even the most basic requirements of a modern, global supply chain.”
The Toy Industry Association (TIA) issued its own statement, which also recommended starting the negotiation prior to port backlogs.
“This past year’s congestion crisis placed a significant financial burden on toy companies—98 percent of which are small businesses,” says Ed Desmond, TIA executive vice president of external affairs. “Going forward, we are calling on PMA and ILWU to begin their negotiations early, so that an expired labor contract will not impact toy companies who rely on the West Coast ports to get their products on store shelves.”
“We look forward to continuing to work with the ports and political leadership to improve port efficiency,” adds Desmond. “Peak shipping season is critical for the toy industry, and over 50 percent of toy imports come in through Los Angeles and Long Beach ports. As international trade continues to grow, we need to work together to identify solutions to congestion issues at the ports.”
