Possible dock strike keeps retailers antsy

By Edvard Pettersson
Bloomberg News

LOS ANGELES — U.S. retailers are concerned that the slow pace of contract talks between ocean carriers and dockworkers on the West Coast may lead to a strike or lockout and disrupt shipments to their stores.

In a letter yesterday, the National Retail Federation urged the Pacific Maritime Association, which represents carriers and terminal operators, and the International Longshore and Warehouse Union, which represents about 10,000 workers, to avoid actions that would disrupt commerce.

Retailers who depend on the West Coast ports to get merchandise from Asia are concerned the carriers and the union are running out of time to resolve key issues before their contract expires July 1, said Erik Autor, international trade counsel with the retailers group.

The economic stakes go beyond the shippers and dockworkers involved in the contract negotiations. Nearly 8 percent of the nation's gross domestic product and 4 million jobs are tied to the operations of the ports in California, Oregon and Washington.

Three years ago, dockworkers in Los Angeles and Long Beach, the two busiest U.S. container ports, slowed down operations when no labor agreement was reached by the deadline.

A similar slowdown this year could cost the U.S. economy billions of dollars, according to Martin Associates, a consulting firm.

The two parties didn't meet for three days. The union doesn't want to talk about work rule changes or automation, the issues most important to carriers and importers, until there is an agreement on benefits, Autor said. That makes the prospect of labor unrest next month more likely, he said.

Hawai'i is closely watching the West Coast talks. Negotiations in the Islands traditionally follow talks on the West Coast as the ILWU seeks parity in wages and benefits with their West Coast counterparts.