As we look at issues facing retailers in 2016, one thing is certain — we cannot afford a repeat of the situation that brought West Coast ports to a crawl last winter. With rapidly growing port congestion threatening the economy, labor negotiations can no longer be allowed to add to the slowdowns.
Some would like to write off the West Coast slowdown as a one-time experience. But rather than wishing, we need to take action to make sure that is the case. Both labor and management need to find ways that allow collective bargaining to take place without becoming a threat to global commerce.
One way is to begin negotiations in a timely manner. In 2014, West Coast ports and dockworkers didn’t begin talks until May even though their contract was set to expire in July. Talks quickly became contentious, and agreement wasn’t reached until February 2015, after U.S. Labor Secretary Tom Perez personally intervened. In 2015, labor and management at East Coast and Gulf Coast ports began discussions even though their contract doesn’t expire until 2018. We hope this becomes the new model for negotiations.
Labor negotiations are not the only reason behind port congestion. Ports are working to address issues such as chassis management, slow truck turn times, lack of automation, neglected infrastructure and larger vessels unloading more cargo. But solutions require facts and cooperation. That’s why retailers support efforts to require the federal government to collect data on port performance.
In addition to seeking an end to port congestion, retailers support pro-growth initiatives ranging from completion of the Trans-Pacific Partnership and long-term infrastructure funding to corporate tax reform. In 2016, we need policies that invest in a 21st century workforce, not government mandates that stifle innovation and growth.