Letter to Hon. Joseph Biden, President of the United States - Daines Urges Biden to Facilitate Proactive Negotiations to Prevent West Coast Ports Strike

Letter

Dear President Biden,

We write to express our concern that the upcoming contract negotiations at America's West Coast ports may result in additional disruptions to our nation's supply chain, which would exacerbate freight congestion, and harm manufacturing and agriculture in our states. Thus, we strongly urge you to use the tools available, and to work with both the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), to ensure the upcoming contract negotiations are completed successfully before the contract expires on July 1.

We have heard from a number stakeholders with concerns that a breakdown in negotiations between the ILWU and PMA will lead to even more disruptions and shipping delays at a time in which our nation's ports are reporting record backlogs. The West Coast ports account for over 44 percent of our nation's port traffic.1 The Port of Los Angeles alone has a backlog of over 70 ships waiting to unload. Unfortunately, these ports are already ill-equipped to deal with the current backlog, let alone even more backlog caused by failed negotiations. According to the 2020 World Bank's Global Container Port Productivity Index, West Coast ports often rank near the bottom of the index and are inefficient when compared to other ports.

Historically, negotiations between the ILWU and PMA have created gridlock, even during times of economic prosperity. These negotiations encompass 22,400 dockworkers, 70 employers, and 29 ports. In 2002, there was a breakdown in negotiations that resulted in a lockout of 10 days and an estimated cost of $1 billion a day. In 2014, negotiations lasted 10 months leading to billions in increased costs for American businesses. Given the unprecedented economic challenges that our nation faces with respect to the supply chain and rising inflation, it is essential that these negotiations proceed smoothly. While this Administration has previously exhibited one-sided behavior favoring unions during labor negotiations, it is essential that the Administration works with both the ILWU and PMA to ensure a timely agreement is made in order to avoid additional disruptions to the nation's supply chain.

We urge you to begin working with the ILWU and PMA to ensure their crucial work continues without interruption. Any delays caused by failed negotiations will have a drastic cost and impact on our nation's supply chain. This cost will be felt by not only retailers and others that rely on ports for their business, but also by millions of American workers, farmers, and ranchers, who may face short-term shutdowns at their factories or barriers to shipping their products to market.

Sincerely,