US president Barack Obama has sent labor secretary Tom Perez to California to help negotiations in the US West Coast dispute between the Pacific Maritime Association (PMA) and the International Longshoreman and Warehouse Union (ILWU).
The Obama administration made the announcement following news that 29 ports along the US West Coast were shut down at the weekend, with shipping companies refusing to pay port workers higher weekend and holiday rates.
The PMA said it would suspend operations Thursday through Monday, as shipping companies were not willing to pay higher wages for less productivity on Thursday, which was a public holiday in some US states, and on Monday, which was a national public holiday.
'The negotiations over the functioning of the West Coast ports have been taking place for months with the administration urging the parties to resolve their differences,' said White House spokesperson Eric Schultz. 'Out of concern for the economic consequences of further delay, the president has directed his secretary of labor Tom Perez to travel to California to meet with the parties to urge them to resolve their dispute quickly at the bargaining table.'
The US fresh produce industry has called on president Obama to intervene in the dispute, which has delayed shipments and affected the country’s exports.
Western Growers president and CEOTom Nassifcalled on president Obama to intervene in the dispute on 13 February. Nassif said the dispute was harming California’s fresh produce exports, with inbound ships waiting up to two weeks before being unloaded.
“Perishable agricultural commodities cannot withstand these types of unplanned delays and neither can customers,” said Nassif. “Many shippers have made the hard decision to forego exports hoping to find alternative homes for their produce, in some instances fetching a lower price for the farmers.”
The Californian citrus industry has previously said that the port strikes and slowdowns had cost the industry US$500m, according to California Citrus Mutual president Joel Nelson.
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