Addressing Supply Chain Issues: New Bill Aims to Deter Labor Slowdowns at West Coast Ports

The recent International Longshore & Warehouse Union (ILWU) work slowdowns at West Coast ports have caused significant disruptions to the supply chain, leading to vessel and truck backups and impacting key transportation operations. In response to these issues, Idaho Republican Senator Jim Risch has introduced legislation in the Senate to address the widespread supply chain problems and deter labor slowdowns. The proposed bill seeks to amend the National Labor Relations Act and the Labor Management Relations Act of 1947, aiming to prevent labor organizations from blocking port modernization and defining labor slowdowns as an unfair labor practice.

1. Impact of Labor Slowdowns: The recent worker “no shows,” unfilled port orders for union labor, and reduced worker productivity have resulted in significant supply chain disruptions at West Coast ports, affecting truckers, freight rails, and ocean vessels. The slowdowns have caused delays in shipping, leading to billions of dollars’ worth of cargo being held up.
2. Proposed Bill Details: The legislation sponsored by Senator Jim Risch, along with co-sponsors Senator Ted Budd and Senator Mike Crapo, updates the National Labor Relations Act to define labor slowdowns in the maritime industry as unfair labor practices. Unions found in violation of the law would be required to pay damages equal to two times the amount of damage caused by their actions.
3. Economic Consequences: The U.S. Chamber of Commerce estimated that a serious work stoppage at the ports of Los Angeles and Long Beach alone could cost the U.S. economy nearly half a billion dollars per day. A more widespread strike across the West Coast could result in losses of approximately $1 billion per day.
4. Need for Modernization: One of the key sticking points in negotiations between the ILWU and Pacific Maritime Association has been the automation of ports. The proposed bill aims to prohibit labor organizations from blocking port modernization efforts, recognizing the importance of keeping pace with advancements in the global economy.
5. History of Legislation: Despite previous attempts by Senator Risch to introduce similar bills, previous versions have never come to a full vote in the Senate. However, with Republican control of the House and growing concerns about supply chain vulnerabilities, there appears to be increased support for addressing labor slowdowns and their impact on the economy.

The introduction of this bill in the Senate underscores the urgency to address supply chain disruptions caused by labor slowdowns at West Coast ports. By defining labor slowdowns as unfair labor practices and imposing penalties on unions violating the law, the proposed legislation aims to protect the U.S. economy, reduce disruptions to commerce, and encourage port modernization. As the issue of labor slowdowns continues to be a challenge for the maritime industry, this bill could provide a pathway forward towards more efficient and resilient supply chains.

Source: https://www.cnbc.com/2023/06/22/new-senate-bill-targets-national-labor-law-and-port-union-workers.html