Lockout Looms on West Coast Ports

The Financial Times reports that negotiations have broken down between the National Retail Federation and International Longshore and Warehouse Union. "The employers’ offer includes pay terms that over five years would increase port average annual salaries from $147,000 to $162,000, maintain their current, unusually generous healthcare plans and provide annual pensions of up to $88,800." However, that is not enough for the Union. Contract negotiations have been going on for nine months, and the Union has been engaging in a work slow-down in order to force more concessions from the NRF, resulting in the NRF's members going without shipments or resorting to more costly air freight. The result may be that the NRF may lock-out the Union, forcing the shut down of the ports. According to the article, "a five-day lockout would reduce GDP by $1.9bn daily, a 10-day lockout by $2.1bn a day and 20 days $2.5bn daily."