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Editorial: Federal action may be needed in port impasse

Sat., Feb. 7, 2015

Over the past three months, the leading export along the West Coast has been uncertainty, which has wrapped itself around trade-dependent businesses and slowly squeezed. Federal intervention may be needed to keep commerce alive.

The work slowdown at West Coast ports stems from a labor dispute between the Pacific Maritime Association and the International Longshore and Warehouse Union, whose contract expired in July. Negotiations began in May; the slowdown started in November. Businesses have been gasping ever since. A federal mediator got involved in January, but so far to no avail.

On Friday, port operators declared that the work slowdown had gone on too long, and announced that vessel operations at all 29 West Coast ports will be suspended for the weekend.

“After three months of union slowdowns, it makes no sense to pay extra for less work,” PMA spokesman Wade Gates said in a statement.

Ending the impasse is critical to businesses throughout Washington. Port-related business generates more than one-third of the state’s total gross domestic product. State government is counting on revenue from that activity.

“I don’t want a special session because of a drop in revenue because of a labor dispute that I can’t control,” Sen. Michael Baumgartner, R-Spokane, said at a recent hearing.

Dairy farmers and apple producers have already lost millions of dollars. Potato growers and beef producers have also felt the pinch. Pacific Rim shipments that normally take six weeks are taking 10 weeks. The military has even had to airlift supplies into bases, because it takes too long to remove them from ships.

The ILWU has apparently employed a slowdown, because a work stoppage could trigger federal intervention. Perhaps this weekend’s shutdown will raise the specter of federal action and shake loose an agreement.

Shippers have been pleading for federal action since November. And there is precedent, under the Taft-Hartley Act, for the feds to get goods moving again. In 2002, President George W. Bush invoked the law to end an 11-day shutdown that was also caused by a bargaining impasse.

The frustrating aspect is that both sides know this fight is not in their best interests. Shipments are being diverted to ports in Canada, the Gulf of Mexico and along the East Coast. They’re happy to take the business.

Furthermore, port workers are already among the best-paid blue collar workers on the planet. Full-time workers can earn up to $150,000 a year. Their benefits packages are worth another $82,000, according to JOC.com, a website for shipping and cargo news. When the nation’s median household income is $53,000 a year, it’s difficult to understand why Pacific Rim shipping must be held hostage.

This weekend’s port shutdown is a clear signal to the Obama administration: Prepare for a rescue.