Americas News
SoCal Port Strike Causes Disruption, Vessel Diversions
The Southern Californian ports of Los Angeles and Long Beach are currently suffering disruption and terminal closures after more than two years of labour negotiations has ended with strike action by the International Longshore and Warehouse Union (ILWU), the respective port authorities have said.
Port of Long Beach said as of as of 5 p.m. on Thursday November 29, 2012 three of its six container terminals were closed, namely Long Beach Container Terminal at Pier F, International Transportation Service at Pier G, and Total Terminals International at Pier T.
The Port of Los Angeles said seven of its eight container terminals were closed Thursday, with the TraPac terminal remaining open.
The two California ports handle about a third of U.S. container shipments, Bloomberg reported.
"It’s essential that both sides in this labor dispute return to the negotiating table and resolve this now. We are starting to see ships divert to other ports, including to Mexico," said Port of Los Angeles executive director Geraldine Knatz.
"In today’s shipping environment, we can’t afford to lose cargo or our competitive advantage."
Negotiations
APL, who's subsidiary Eagle Marine Services has been impacted by the strike, said it has been involved in negotiations over a new labor contract with the ILWU for over two and one-half years and that last week ILWU declared an end to contract negotiations.
The workers have been reportedly rejected a compensation offer totalling more than $190,000 in wages and benefits, but ILWU say salaries are not the issue and they want to stop the outsourcing of jobs from the area.
"The dispute isn’t over pay and benefits, which both workers and the companies agree are excellent," ILWU said in a statement.
"Over 51 permanent positions that benefit the Harbor community have been lost in recent years because of outsourcing to diverse locations including Costa Rica and Dallas, Texas."
"We’ve been patiently negotiating with these big companies for the past 30 months, but they’re refusing to respect our community and want to keep outsourcing good jobs – so we’re drawing the line and standing-up for the community," said Trinie Thompson, an APL clerical worker who participated in the negotiations.
Contract negotiations are also currently underway between the United States Maritime Alliance (USMX) and the International Longshoremen's Association (ILA) covering some 14,500 jobs on the U.S. East and Gulf Coasts.
One strike has already been averted, but the ILA says its "resolve remains strong" as the new December 29, 2012 approaches.
