Port contract negotiations could be new supply chain snag

The International Longshore and Warehouse Union and cargo-handling companies at West Coast ports are set to begin contract negotiations May 10 for 22,400 workers across 29 ports, which has some experts concerned about further supply chain disruptions, The Wall Street Journal reported May 8. 

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As ports work to clear backlogs, officials say the network remains “fragile,” and potential tensions during the negotiations could lead to further delays. Disagreements between labor and companies during two of three most recent contract negotiations caused cargo delays that cost individual manufacturers and retailers millions, the Journal reported.

“If anything further disrupts the supply chain, it will be devastating,” Jim McKenna, head of the Pacific Maritime Association, who will lead labor talks on behalf of employers, told the Journal

The International Longshore and Warehouse Union is seeking “a contract that honors, respects, and protects good American jobs and U.S. importers and exporters,” union President Willie Adams wrote in an open letter May 6.

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