The poultry industry and the economy in general recently avoided extensive disruption following temporary resolution of the rail transport workers’ contract.  Negotiations over a West Coast port contract has been in progress for over a year.  The previous contract expired on July 1st and must be renewed with appropriate modifications and concessions. 

The International Longshore and Warehouse Union (ILWU) represents most workers at 29 ports.  Completion of negotiations is complicated by the action of SSA Marine, Inc., operating in the port of Seattle, after assigning work to the International Association of Machinists and Aerospace workers (IAM).  The ILWU considers this step to be contrary to the collective bargaining agreement with the Pacific Maritime Association representing 70 companies operating docks and warehouses.

During the past few months following expiration of the contract with the ILWU, shippers have been moving cargo to Gulf and East Coast ports to avoid disruptions should there be labor action.  Widening the Panama Canal has also expedited movement from Asia to the East Coast of the U.S., resulting in some congestion at Atlantic ports despite installation of more berths, erection of warehousing and extending road and rail links.