Both sides of a West Coast labor dispute are entering extra time as the contract between the Pacific Maritime Association and the International Long Shore and Warehouse Union officially expired June 30.
As expected, both sides are negotiating in an effort to avoid the economic damage from a costly strike on the docks that, according to a recent study, could cost as much as $2.5 billion per day.
That arresting estimate comes from a new report conducted by National Retail Federation and the National Association of Manufacturers. “The National Impact of a West Coast Port Stoppage,” in its summary states: “If no new agreement between the ILWU and the PMA is reached and disruptions across 30 West Coast ports take place, the economic consequences would be significant and widespread.”
The report does the math and concludes:
• A 5-day strike scenario would reduce GDP by $9.4 billion;
• A 10-day closure would cost $21.2 billion; and
• A 20-day disruption would hurt to the tune of $49.9 billion.
Click here for the study.