There is optimism that US west coast port operators and dockers will be able to reach agreement on a new labour contract by the July 1 deadline.
This would avoid a repeat of the 2002 work stoppage that forced the closure of some of the nation's busiest ports and estimated cost to the nation of US$1 billion a day.
The Pacific Maritime Association, which represents cargo carriers and terminal operators in the three west coast states, and the International Longshore and Warehouse Union are hoping to strike a deal by the end of the month, when the union's present six-year contract expires. The union represents 26,000 dockers at 29 ports from San Diego to Bellingham, Washington, reports The Wall Street Journal.
It said that earlier last week, the two sides issued a joint statement saying that they had reached a tentative agreement on health-care benefits. "While the pace and tone of the talks have been productive, important issues remain, with work left to be done," the release said.
Industry experts warn that failure to negotiate a new contract by the deadline could result in a fresh round of strikes. Although the prospect of industrial action appears less likely this time, thousands of workers failed to report to work on May 1 at 29 ports, which forced the closure of ports for eight hours.
"It's absolutely vital that we avoid that situation," said Erik Autor, CEO and international trade counsel of the National Retail Federation. "I do think the risk of a port shutdown is considerably less than 2002, when the animosity between the two sides was pretty palpable."
Both sides are aware that any further work stoppages could not come at a worse time given the slowdown of the US economy, high fuel prices and the Midwest floods. It noted that two railroads, Union Pacific Corp. and Burlington Northern Santa Fe, have notified investors that they expect lower second-quarter earnings because of flood-related logistical problems.
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