The Chamber of Commerce urges President Biden to designate a mediator in contract negotiations between the PMA and ILWU
The U.S. Chamber of Commerce has written a letter to President Joe Biden, urging him to appoint an independent mediator to assist in resolving labor negotiations at West Coast ports. Concerned about recent disruptions and the potential impact on the economy during the peak shipping season, the Chamber of Commerce emphasized the need for intervention. They highlighted the previous use of a federal mediator during the 2002 port labor negotiations, which resulted in an 11-day shutdown costing the economy approximately $10 billion. Other business groups have also expressed worries about port disruptions and their potential consequences, with the National Association of Manufacturers warning that a 15-day disruption could cost half a billion dollars per day.
The contract talks between the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) began in May 2022, and disruptions have escalated in recent weeks, affecting major West Coast ports such as Los Angeles, Long Beach, Oakland, Seattle, and Tacoma. In response to the uncertain situation, many shippers have diverted cargo to East and Gulf Coast ports, leading to a decline in container imports at West Coast ports. The Chamber of Commerce emphasized the potential long-term damage to local economies if these diversions persist due to stalled labor talks.
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