RETAIL

NRF President Calls for a Better Way to Resolve Labor Union Disputes


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Matt Shay

Noting that the retail industry is highly reliant on just-in-time delivery of goods, the head of the National Retail Federation said many retailers were economically hurt by the recent West Coast port problems and labor slowdowns that led to imported merchandise taking weeks and even months to be delivered.

“Countless retailers of all sizes, from big-box stores to boutiques, are feeling the hurt,” said Matt Shay, the NRF’s president and chief executive, speaking at a March 2 luncheon held at the 15th annual Trans-Pacific Maritime Conference in Long Beach, Calif. (See related story, page 1.)

He said one retailer told him that he had ships that should have discharged merchandise in Tacoma, Wash., but skipped Tacoma to unload merchandise in Vancouver, Canada, and then went to anchor for three weeks before returning to Tacoma. “He said, ‘We will literally be throwing the cargo away,’” Shay noted.

Another retailer was expecting at least a $20 million loss in the first quarter due to the delivery delays.

“Our pain was particularly acute over the recent Christmas season, when our retailers suffered delays in getting holiday goods to store shelves,” he said. “Now, as we begin to stock up for warmer weather to come—from garden shovels to spring fashion shoes—it looks like another seasonal opportunity will be affected.”

To survive, he said, retailers shifted cargo to ports along the East Coast, the Gulf Coast, Canada and Mexico. “In many cases, these temporary arrangements might become permanent,” he observed.

Much of the more recent port congestion problems were caused by work slowdowns during the drawn-out labor negotiations between the International Longshore and Warehouse Union and their employers, the Pacific Maritime Association.

He said it was unacceptable to resolve issues with work slowdowns and there had to be some solution. “The time has come for all of us to say, ‘Enough is enough.’ There are too many challenges facing the ports that already require us to work together. The ongoing uncertainty and unpredictability from labor negotiations every few years can’t be standard operating procedure,” he said.

“I do have to say that it is inconceivable to me that a small group of narrowly self-interested people can think it’s okay to put thousands upon thousands of American jobs at risk,” Shay added.

He called on Republicans and Democrats to work together to reform labor laws and regulations and modernize the labor-agreement system to avoid the kind of costly negotiating period just concluded between longshore workers and their employers.

“Overall, labor and management work together quite well in this country,” Shay said. “Look at the automakers, for example. Ford [Motor Company] and the UAW [United Auto Workers] found ways to work together in the depths of the recession to restructure and refocus to build a stronger company for the future. …We can do the same here.”