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Port labor negotiators agree to extend talks
Ports along the East Coast will remain open for business after Oct. 1 because negotiators in labor talks have agreed to an extension of the facilities' existing collective bargaining agreement.
The possibility of a shut down had loomed since talks between the U.S. Maritime Alliance (USMX) and the International Longshoremen's Association (ILA) had stalled in August after months of negotiations.
But the group that is mediating the contentious discussions, the Federal Mediation and Conciliation Service (FMCS), said Thursday that the two sides have made progress since returning to the negotiating table on Sept. 17 and have agreed to continue talking to each other.
"I am pleased to announce that at the close of today's productive negotiation session, in which progress was made on several important subjects, the parties have agreed to extend the collective bargaining agreement due to expire on September 30, 2012, for a ninety (90) day period, i.e. through December 29, 2012," FMCS Director George Cohen said in a statement. "In taking this significant step, the parties emphasized that they are doing so 'for the good of the country' to avoid any interruption in interstate commerce."
"The negotiations on the master agreement will be conducted during the same time frame as negotiations for local agreements," Cohen said.
The extension of the negotiations was immediately cheered by groups representing the retail industry.
“The 90 day extension is welcomed news for retailers because it ensures that a work stoppage at the ports will not interfere with the flow of goods during the critical holiday season,” Retail Industry Leaders Association (RILA) Vice President Kelly Kolb said in a statement.
“Ports play a critical role in the supply chain and a potential disruption would be harmful to the retail industry as it would lead to lost sales and aggravated customers," Kolb continued. “RILA will continue to closely monitor the progress of negotiations and strongly urge the parties to reach a long-term agreement as soon as possible in order to remove the threat of a devastating work stoppage at the East and Gulf Coast ports.”
National Retail Federation Vice President for Supply Chain and Customs Policy Jonathan Gold expressed similar sentiments.
“This is a significant step forward, and signals that both sides – labor and management – are serious about reaching a deal," he said. “The National Retail Federation (NRF) has long urged both sides to continue their negotiations up to and beyond the September 30 contract deadline in order to avoid any supply chain disruption or delay, and we applaud today’s decision."
Gold said the extended negotiation period "should provide for a stable holiday shipping and shopping season over the next few months."
But he added: "Until a final contract is ratified, America’s retail community will remain concerned. NRF continues to urge both sides to negotiate in good faith to reach a firm and final deal for the good of the supply chain, and the good of the U.S. economy.”
There are 82 ports in the United States that could have been affected by a possible work stoppage because non-East Coast ports would have faced a deluge of shipments.
