News / Supply chain fears as labour talks at US and Canadian box ports hit new lows

© David Tonelson

The war of words between Pacific Maritime Association (PMA) and the ILWU dockworkers’ union intensified yesterday after the employers accused the ILWU of “orchestrating disruptive work actions” at US west coast ports.

And in another blow to North American shippers, ILWU workers in Canada agreed last week by a huge majority in favour of strike action this month, if required, to support their new contract negotiations.

The PMA was reacting to the ILWU announcing on Saturday it was “committed to negotiating a fair and equitable agreement”. It accused the union of withholding container lashing gangs, “resulting in vessels having to miss their scheduled departures”.

The association also alleged that, at the ports of Los Angeles and Long Beach, the union had not filled orders for labour “from several terminal operators, despite the fact that they were placed properly and on time”.

Elsewhere, at the port of Seattle, the PMA claimed the ILWU “continued to stage disruptive work actions that led to containerised terminal operations coming to a halt”, adding: “In some cases, the union slowed down operations, resulting in longshore workers being sent home. On another shift, the union failed to dispatch longshore workers being sent home.”

It contended that the union’s actions, “contrast sharply” with the ILWU announcement. It argued: “These actions have either slowed operations or shut them down altogether, impeding the supply chain and leaving ships and the American exports they carry sitting idle at the docks.”

In Canada the ILWU branch told members yesterday: “The results of the strike vote show a 99.24% in favour of supporting strike action against the BC Maritime Employers Association, if necessary.”

The deteriorating relationships between employers and unions on the west coast of North America creates another round of uncertainty for supply chains ahead of the peak season, with vessels already being obliged to anchor, awaiting berth and labour.

Indeed, in the S&P Global Market Intelligence weekly Supply Chain Edge newsletter, the threat to ‘back-to-school’ products is highlighted as “particularly exposed” as, according to S&P Global data, the US west coast container hubs account for 54% of all imports of children’s apparel, footwear and backpacks.

“The effect may be small if the disputes can be settled in June,” says the report, but adds that “the stakes are somewhat higher in July and August”.

Meanwhile, following pressure on the Biden administration to intervene in the long-running dispute by the National Retail Federation, National Association of Manufacturers and US Chamber of Commerce, CNBC’s Lori Ann LaRocco reported that acting labour secretary Julie Su was in communication with both parties and attempting to broker a deal.