Port employers and the union representing East and Gulf coasts dockworkers begin a two-day meeting in New Jersey to prevent a strike that would disrupt maritime commerce along the entire U.S. Eastern Seaboard.
Talks on a labor deal for six of the 10 busiest ports stopped in June when the International Longshoremen's Association called off wage negotiations with the U.S. Maritime Alliance (USMX) that represents ocean carriers and port operators, Bloomberg reported.
U.S. retailers are once again asking the White House to help about 45,000 dockworkers and 36 ports come to a resolution before a looming Sept. 30 deadline.
"At a time when inflation is on the downward trend, a strike or other disruption would significantly impact retailers, consumers and the economy," National Retail Federation (NRF) CEO Matthew Shay said in a statement on Tuesday.
"The administration needs to offer any and all support to get the parties back to the table to negotiate a new contract."
The NRF said it led a coalition of 158 state and federal trade associations in June in sending a letter to President Joe Biden urging his administration to work with the union and the terminal operators toward ending the deadlock. It also sent a letter to both sides earlier this year asking them to resume labor talks.
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"The threat of a strike during the peak shipping season has many retailers already implementing costly mitigation," Shay said.
"At a time when inflation is on the downward trend, a strike or other disruption would significantly impact retailers, consumers and the economy."
The union is seeking a wage hike of nearly 80% over six years, compared to the 32% pay increase that West Coast dockworkers received last summer after ironing out a labor deal.
ILA President Harold Daggett has repeatedly warned of a strike if no deal is reached by the deadline and has opposed using automation at port terminals.
USMX has said they have given an "industry-leading" offer on wages and proposed keeping the language on automation out of the existing contract.
Price Action: Major retailers and the exchange-traded funds that hold retail stocks saw losses into Wednesday's mid-morning trading.
- Home Depot, Inc. (NYSE:HD) was down 0.77% to $361.87
- Walmart Inc. (NYSE:WMT) slipped 0.039% to $77.15
- Target Corporation (NYSE:TGT) fell 0.12% to $151.62
- SPDR S&P Retail ETF (NYSE:XRT) declined 0.89% to $74.37
- VanEck Retail ETF (NASDAQ:RTH) was down 0.51% at $207.58.
- Direxion Daily AMZN Bull 2X Shares (NASDAQ:AMZU) slid 1.42% to $29.25.
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