The PORTS Act of 2015 - Preventing Disruptions at U.S. West Coast Ports
Summary
Contract negotiations and related labor disputes at U.S. ports have become increasingly problematic over the past decade, causing significant damage to the U.S. economy and to millions of businesses and jobs. The Protecting Orderly and Responsible Transit of Shipments (PORTS) Act of 2015 would allow state governors to intervene in labor disputes at seaports to stop disruptions and protect American businesses, employees and consumers from economic harm.
Background
International trade is critical to the U.S. economy and jobs: International trade via seaports accounts for more than a third of U.S. gross domestic product and that value is expected to increase to 60 percent by 2030. Seaports currently support 13 million domestic jobs. The number of trade-supported jobs has doubled over the past 20 years and is still growing faster than total employment. In 2014, 98 percent of the employers supporting export-related jobs were small or medium-sized businesses.
Disputes at our ports disrupt trade and hurt local and national economies: Labor disputes at the ports clog up these vital arteries and lead to delays, higher costs and lost business for industries throughout the country. For example, a 2002 dispute at the West Coast ports reportedly cost the country $1 billion per day in lost economic activity. The continued threat of a labor strike during the 2012 East Coast/Gulf Coast negotiations forced companies to put costly contingency plans into place in order to avoid potential disruptions.
Remedies exist but go unused: Congress decided long ago that the health and reputation of the greatest economy in the world should not be used as leverage in contract negotiations. By enacting Taft Hartley, lawmakers established a process by which the President can petition federal courts to end labor disputes because of a strike, lockout or threat of either. But when the President refuses to act, the affected businesses, employees and consumers have few options.
PORTS Act
This legislation would grant state governors Taft Hartley powers to form boards of inquiry and use federal courts to enjoin slowdowns, strikes or lockouts at US ports. This approach aligns political incentives and promotes action to prevent lasting damage to the U.S. economy and trade.
- Clearly defines situations in which Taft Hartley can be invoked, preventing the President or governors from using legal ambiguity to excuse inaction, and allows a governor from any state to initiate the process by forming a board of inquiry.
- Allows those most affected by the disruptions (local community leaders and constituent business, employers and consumers) to apply pressure on their governors, rather than trying to mobilize a national campaign to convince the President to act.
- Builds upon a well-known statutory process informed by 70 years of federal case law and first-hand experience that apply specifically to port owners and unions.
For more information contact Rob Neenan at the CLFP office at rob@clfp.com or at 916-640-8150.
Article written by Rob Neenan, California League of Food Processors, President and CEO
California League Of Food Producers