Watching Port Worker Union Negotiations in the LA Basin Area

Commentary:

There is a potential (very slight) for disruption on the West Coast via a workers dispute with the ILWU Clerical workers union.

After a labor contract expired on June 30th, the workers union and employers at the ports of LA and Long Beach have been engaged in negotiations that have thus far been amicable – but remain “at odds on key issues”. To date, no strike or port activity disruptions have resulted from the labor dispute – although as peak season approaches officials are getting nervous. The union really only has until the end of the peak season to have enough bargaining leverage to get a deal done. When business levels fall off, the negotiating position for the union weakens. Although the ports can operate temporarily without the clerical workers, it can’t for very long. And, in disputes in years past, the ILWU can typically get reciprocal support from sister union groups – creating the disruption that supply chain managers worry about. Again, there is no indication of any eminent work disruption or stoppage at this stage. Negotiations resume on Wednesday according to officials. We will continue to monitor and report out any changes.

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