LA-Long Beach strike continues, ships divert as talks reach stalemate

TALKS to end the Los Angeles-Long Beach dock strike continued, but negotiations were not close to agreement as dockers refused to cross picket lines set up by striking waterfront clerks, reported the Los Angeles Daily Breeze.

Cargo has been diverted to Oakland, Panamana and Mexico while others linger at anchor. Logistics industry experts say no shippers like to send goods to troublesome ports so the walkout will have a lasting impact if not resolved soon.

Union members claim terminal operators have been shifting work to lower-wage workers in other states and countries via internet technology, an accusation employers deny. The union also fear use of computer controlled cranes loading ships beyond the harbour precincts.

Management negotiators say the new contracts must stop featherbedding. or providing jobs when there is no work to perform - one of the key demands of the International Longshore and Warehouse Union (ILWU).

Said Los Angeles Mayor Antonio Villaraigosa: "The cost is too great to continue down this failed path. Mediation is essential and every available hour must be used."

Politicians and retailers have pushed the sides to negotiate. The strike began last Tuesday when members of the 800-strong Office Clerical Unit - one of the smallest ILWU, walked off the job at APM Terminals Pacific Ltd, the largest terminal operator in Los Angeles, then spread to shut down three of six terminals in Long Beach and seven of eight terminals in Los Angeles after other union members refused to cross picket lines.

"Cargo continues to back up and concern is mounting throughout the worldwide logistics chain. We need resolution to prevent further economic damage," said Port of Los Angeles spokesman Phillip Sanfield.

Many analysts first said the strike was not critical as it occurred in the slack season, but now say the longer it lasts, the deeper the impact will be on the supply chain.

"This shutdown of the ports doesn't just impact the retail industry," said National Retail Federation vice president Jonathan Gold. "You've got manufacturers who are operating just-in-time supply chains, and you've got exports that aren't moving because the ports are shut down. We're in day five. We need it to end now because it's going to take some time to clear backups."

Mr Gold also said it took retailers roughly six months to recover from the impact of a 10-day lockout in 2002 that affected ports throughout the US west coast.

Under the 1947 Taft-Hartley Act governing union-management relations, President Barack Obama could invoke an emergency mechanism and ask a federal court to order an 80-day cooling-off period as President George W Bush did in the 2002 lockout.