James McKenna, the president of the Pacific Maritime Association, said backups and delays at many of the ports are harming farmers, manufacturers and consumers as the flow of goods approaches a "coast-wide meltdown." He called on the International Longshore and Warehouse Union to accept management's second formal contract proposal since negotiations began last May.
"We're not considering a lockout," McKenna said on a conference call with reporters, his first public comments since the talks began. "What I'm really saying is that this system will bring it to a stop. Once that happens, we really don't have a choice."
The association of shipping lines, terminal operators and stevedores made public details of its contract offer, including 3 percent annual raises over five years, retaining employer-paid health care, and raising pensions by 11 percent. The average dockworker now makes $147,000 a year in salary, plus $35,000 a year in employer-paid health care and an annual pension of $80,000, according to an association press release.
Federal Mediator
The previous six-year contract expired last July. A federal mediator agreed Jan. 6 to intervene in negotiations between the two sides in San Francisco. Negotiators have announced tentative agreements on health care and maintenance of truck chassis used to transport containers from ships.
The surprising PMA offer includes an agreement by employers to continue paying 100 percent of dockworkers' medical costs, including the Cadillac tax under ObamaCare. The employers' proposal would increase annual pension payments to $88,800 a year, in a contract employers propose will run for five years.
After the chassis agreement was struck Jan. 27, Wade Gates, a spokesman for the maritime association, said his side was hopeful for a full contract agreement "in the near term."
Since then, the longshore union made "significant new demands" including the right to unilaterally fire workplace arbitrators, the management association said.
Craig Merrilees, a spokesman for the 20,000-member longshore union, said the two sides continue to make progress as they negotiate this week in San Francisco.
"The number of outstanding issues is getting smaller and the differences are decreasing," Merrilees said by telephone. "We'll get there if everyone stays focused on solving the issues, which are easily addressed."
In a statement Wednesday, the union pledged to keep ports open and goods moving.
Work Slowdowns
McKenna blamed the union for work slowdowns that have contributed to congestion at the largest West Coast ports, including Los Angeles, Long Beach, Oakland, Seattle, Tacoma and Portland. Twenty-two ships were queued up Wednesday at the harbor shared by the Los Angeles and Long Beach ports, up from as few as four in mid-December, according to the Marine Exchange of Southern California, in one measure of the backups confronting shippers.
Since early November, the longshore union has been dispatching fewer crane operators in Los Angeles and Long Beach and slowing cargo movement in Oakland, Seattle and Tacoma, according to a Feb. 3 maritime association presentation. McKenna said productivity at many ports is down by as much as half, suggesting that cargo movement "will collapse under it's own weight".