Biden Labor Secretary Julie Su engaged in tense West Coast port talks
Julie Su testifies before a Senate Health, Education, Labor and Pensions Committee hearing on her nomination to be Labor Secretary, on Capitol Hill in Washington, U.S., April 20, 2023.
President Biden's Acting Labor Secretary Julie Su is in current communication with labor and port management representatives in an effort to help broker a deal at a time of rising tensions at ports up and down the West Coast.
Su, who served as secretary for the California Labor and Workforce Development Agency until 2021, has longstanding relationships with both sides, and is helping to maintain communication at the bargaining table and move towards a final contract between the International Longshore & Warehouse Union and Pacific Maritime Association.
The Department of Labor confirmed Acting Secretary Su's involvement, but declined further comment.
President Biden nominated Acting Secretary Su on February 28 to replace Labor Secretary Marty Walsh, who stepped down in March. Su has the backing of many labor unions, including the United Mine Workers, NABTU, LiUNA, the IBEW and AFL-CIO, but has also received support from business leaders, including a group of 250 executives who sent a letter to the Senate backing her nomination, as well as the Los Angeles Chamber of Commerce. She was previously confirmed by the Senate to serve as the deputy secretary of labor on July 13, 2021.
The calls from industry for the Biden administration to intervene in the West Coast port situation have been increasing, from the National Retail Federation to the National Association of Manufacturers and U.S. Chamber of Commerce, which voiced its concerns in a statement last Friday about a "serious work stoppage" at the ports of Los Angeles and Long Beach which would likely cost the U.S. economy nearly half a billion dollars a day. It estimated a more widespread strike along the West Coast could cost approximately $1 billion per day.
"The best outcome is an agreement reached voluntarily by the negotiating parties. But we are concerned the current sticking point – an impasse over wages and benefits – will not be resolved," U.S. Chamber of Commerce CEO Suzanne Clark wrote in a letter to President Biden.
Supply chain fears are running high from trucking to rails and ocean carriers. Billions of dollars in cargo has been held up off ports, container congestion and delays have led to longer service and turnaround times. Further complicating the crisis planning for logistics firms was a landslide vote by ILWU Canada workers to authorize a strike at Canadian West Coast ports, and low water levels at the Panama Canal, which make the option of alternate trade routes on both the West Coast and the East Coast ports more difficult.
Logistics managers trying to navigate the growing port congestion said involvement from the Biden administration is welcome news, but the on-the-ground situation at ports remain stressed and financial consequences, such as late penalties, are becoming more likely.
"We are not getting the effective turns of our drivers," said Paul Brashier, vice president of drayage and intermodal at ITS Logistics. "Even if a terminal is saying they are operating and it's so slow, we can be charged with demurrage charges."
The Pacific Maritime Association claimed that "intentional" slowdowns by the ILWU continue, according to a statement it put out on June 10.
The ILWU declined to comment.
Source: CNBC
