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National Retail Federation V.P. Jonathan Gold on the potential impact of the looming port strike on industries such as retail.
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-- threatened strike today good does strike -- all thousands thousands of union dock workers.
Are threatening to walk out at fourteen ports as early -- this weekend.
And with retail sales already down two and a half percent this past week vs the same period a year ago.
-- Jonathan gold from and after retail federation says a strike would make things a lot worse Jonathan what's the impact to the retailers.
On thank you very much Steve impact -- now in the retail industry.
But also all industries rely on the ports for imports and exports is me very significant if the ports are -- to shut down for any length of time.
And wants to contract expires this weekend.
What what kind of industry -- the retail you've got.
All the way from department stores to lumber to auto two is there one that's gonna be hit worse than the other.
No I mean this is be widespread across all -- all industries including retail.
Manufactures -- relying on inputs to production.
Farmers for trying to get their products overseas to overseas markets.
Trucking companies who rely on the ports -- the containers -- the now so this is any widespread not just in the ports into the retail industry but for all industries again who rely on the ports.
Through the nation's commerce both in and out of the United States what is what's the fight what's the problem.
I think there are numbered.
Issues that need to be discussed between unions and -- there.
We -- taking positions on any of the issues are being discussed it's everything ranging from the container royalties which seems to be the latest issue that is being discussed.
Two jurisdiction issues.
And that from the management side issues -- -- to work rules and efficiencies.
We think all the issues need to be on the table and discussed but only the parties themselves can.
You know figure out what needs to be done you -- to -- the table and continue to negotiate.
And not engage in supply chain disruption.
-- the law the longshoreman.
That seem to have a varies a much stronger unions in most unions I mean there's unions have seen there the better days in the past but the longshoreman.
One report I saw was -- make about a 125000.
Dollars on average -- Have all their medical paid for a mean these things are -- are not normal in most labor contracts today.
Why are they so powerful is -- because of exactly what what.
Can happen energy got the whole East Coast all the way around Florida into Houston.
I think that's part of it but -- -- did the gains have worked over the years with management on these contracts so.
What's been discussing what's in their packages our are between the union and and management.
You know they are a critical components -- -- the -- supply chain.
If we don't have ports that are operating in and moving efficiently is -- -- not for a wrench into the systems and have a significant impact.
All right so how how far into the country if you're talking about the ports -- we showed the map where all the way down to a from Boston all the way down around to Houston.
But you were talking about the truckers and so for the mean look at that that is a big chunk of the country.
How far inland do they go in will we start seen.
Retailers' shelves that are in.
To.
-- is -- fairly significant it's not just any localized to where the ports are.
You know all companies throughout that the country both again importers and exporters rely on -- ports to move their products both in and out.
If -- strike or shut down goes on for more than a couple of days.
-- -- start to seen impact on on retail shelves with potentially products not being available.
Later on this yeah.
Retailers are in the process now of looking to bring in their early spring merchandise in January.
Everything from Easter she's -- patio furniture could be impacted by -- strike.
-- -- -- They I mean I'm I'm trying to think of what what comes in on a ship and I I'd though obviously you've got.
A variety of products from.
Oil to textiles to all kinds of things but.
How far coming down the list there I'm I'm trying to figure out what -- couple of days what do I need to stock up on before people start running death of as -- right now any -- strike that occurs only be limits you containerized cargo.
So do you need to -- -- perishable items will not be impacted autos will not be impacted.
But if there's a management locked out all those products could be impact.
There was just to strike that was settled out on the West Coast is is there are some basis for using that as a blueprint for what they can do on these.
No it was a much different issue out on the West Coast we had an eight day strike at the ten terminals at the ports of Los Angeles at much at.
-- between Los Angeles and Long Beach and that was.
I do with the clerical union -- union so that's where that she was.
This is -- -- along the east and Gulf Coast impacting the the international -- association which is.
The union out here.
All right so as far as the the demands go.
Is there any one particular.
Place where they -- they are at least somewhat close together or they are we this close on the whole contract horror or they are part like the folks in Washington.
You know over the summer they had made some progress on some of the key issues and then -- they walked away and had some issues.
We hope they can get back together in and get a deal done.
We know the federal mediator has called both parties back to the table in advance of the December 20 ninth contract extension.
Expiration we hope they can get a deal done and you know we're keeping our fingers crossed the -- happened but.
Right now really all signs point to some kind of shut down or strike what's the contract expires this weekend.
All right Jonathan gold special retail federation -- thank you so much.
Thank you very much that we.
