Deadline Extended in East/Gulf Coast Port Contract Talks

Image
Paul Taggart/Bloomberg News

Management and labor negotiators in the East and Gulf Coast port contract talks have agreed to a 90-day extension of a contract that was due to expire on Sept. 30, giving the two sides more time to “focus on the outstanding core issues in a deliberate manner.”

Thursday’s announcement from George Cohen, director of the Federal Mediation and Conciliation Service, came after the two sides agreed earlier this month to return to the bargaining table this week with FMCS as mediator.

“I am pleased to announce that at the close of today’s productive negotiation session, in which progress was made on several important subjects, the parties have agreed to extend the collective bargaining agreement,” Cohen said in a statement.

“This extension will provide the parties an opportunity to focus on the outstanding core issues in a deliberate manner apart from the pressure of an immediate deadline,” he said.



Talks broke down on Aug. 22. Remaining key issues in the talks include automation, wider use of technology and job preservation.

The International Longshoremen’s Association said that other maritime unions — including the International Longshore and Warehouse Union on the West Coast — have created an alliance “to vigorously protect our jurisdictions, working conditions and labor rights.”

A report from Deutsche Bank estimated that a disruption similar to the 10-day West Coast port work stoppage could cost the U.S. economy $19 billion and reduce already weak gross domestic product growth by 0.8%.

Multiple sources tried to keep the focus on the consequences if cargo stopped flowing through ports from Maine to Texas, which handle about one-third of U.S. international container freight.

Among the groups joining pleas for a settlement were the Toy Industry Association — which called a potential work stoppage “a serious threat to the toy industry during the critical pre-holiday shipping season” —and the Agricultural Transportation Coalition.