Independent truck drivers gather to delay the entry of trucks at a container terminal at the Port of Oakland, during a protest against California's law known as AB5, in Oakland, California
Wed, July 20, 2022
By Lisa Baertlein
LOS ANGELES (Reuters) -Protesting truckers stopped traffic on Wednesday at a Northern California port, one of the busiest in the United States, as they demonstrated against a new state labor law that makes it harder for independent truckers to operate.
Drivers picketed gates and blocked other truckers from hauling cargo in and out of the port. The protests in Oakland began on Monday and have grown larger and more disruptive with each passing day.
Late on Wednesday, Port of Oakland Executive Director Danny Wan acknowledged protesters' frustration with California's "gig worker" law and warned that a prolonged shutdown would "damage all the businesses operating at the ports" and cause customers to shift cargo to rival seaports.
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The protesters worry that the law, which could soon be put into effect, will impose hefty costs on them that will slash their earnings.
SSA Marine, which manages the largest terminal at the Port of Oakland in the San Francisco Bay area, closed operations on Wednesday due to the protests, which ground business at other marine terminals to a virtual halt.
SSA and Everport terminal managers sent International Longshore and Warehouse Union (ILWU) dock workers home for safety reasons, a source familiar with the situation said Wednesday.
Terminal representatives did not immediately respond to requests for comment.
The new law, formally called AB5, sets tougher standards for classifying workers as independent contractors.
Trucking industry legal challenges delayed enactment of the law for more than two years, but the U.S. Supreme Court declined to review the case on June 30, clearing the way for it to go forward.
Backers, including the Teamsters and the ILWU, say AB5 aims to clamp down on labor abuses and push companies to hire drivers as employees - which would enable them to join unions and collectively bargain with employers.
Some 5,000 truckers work at the Oakland port, which is a major hub for agricultural exports including almonds, rice and wine.
The protests in Oakland followed actions last week at the nation's top two seaports, at Los Angeles and Long Beach in Southern California.
The three California ports handle about half of the nation's container cargo volume. The trucker protests come as the ILWU, which represents dock workers at those and other U.S. West Coast ports, is in high-stakes contract talks with terminal operators that employ them.
Protest organizers say their actions will continue until they get an audience with Governor Gavin Newsom, who did not respond to requests for comment on Wednesday.
On Monday, the Governor's Office of Business and Economic Development said: "Now that the federal courts have rejected the trucking industry's appeals, it's time to move forward."
(Reporting by Lisa Baertlein in Los Angeles; Editing by Lisa Shumaker, Cynthia Osterman and Richard Pullin)
Trucker protest shuts down operations at California port
The protest that began Monday, July 18 involves hundreds of independent big-rig truckers that have blocked the movement of cargo in and out of terminals at the port, which is one of the 10 busiest container ports in the country.
The protest that began Monday, July 18 involves hundreds of independent big-rig truckers that have blocked the movement of cargo in and out of terminals at the port, which is one of the 10 busiest container ports in the country.
(AP Photo/Noah Berger, File)
Wed, July 20, 2022
OAKLAND, Calif. (AP) — Truckers protesting a state labor law have effectively shut down cargo operations at the Port of Oakland, it was announced Wednesday.
“The shutdown will further exacerbate the congestion of containers" and port officials are urging operations at shipping terminals to resume, a port statement said.
The protest that began Monday involves hundreds of independent big-rig truckers that have blocked the movement of cargo in and out of terminals at the port, which is one of the 10 busiest container ports in the country, according to its website.
There was no immediate word on when the protest might end but it's exacerbating supply-chain issues that already have led to cargo ship traffic jams at major ports and stockpiled goods on the dock.
The protest comes as toymakers and other industries enter their peak season for imports as retailers stockpile goods for the fall holidays and back-to-school items.
The truckers are protesting Assembly Bill 5, a gig economy law passed in 2019 that made it harder for companies to classify workers as independent contractors instead of employees, who are entitled to minimum wage and benefits such as workers compensation, overtime and sick pay.
A federal appeals court ruled last year that law applies to some 70,000 truck drivers who can be classified as employees of companies that hire them instead of independent contractors.
The International Brotherhood of Teamsters called it a “massive victory" for exploited truckers. But the California Trucking Association, which sued over the law, had argued the law could make it harder for independent drivers who own their own trucks and operate on their own hours to make a living by forcing them to be classified as employees.
The legal battle stalled enforcement of the law but last month the U.S. Supreme Court recently decided it wouldn't review the decision.
Truckers are now asking Gov. Gavin Newsom to meet and discuss the issue.
Meanwhile, there's been no word on when the state might begin enforcing the law, which is still being contested in lower courts.
Messages seeking comment from the governor's office and the Governor’s Office of Business and Economic Development weren't immediately returned Wednesday evening.
The director of the business and economic development office, Dee Dee Myers, emailed CNBC that “it’s time to move forward, comply with the law and work together to create a fairer and more sustainable industry for all.”
Ports already have been struggling to handle container traffic, much of it from Asia. After the COVID-19 pandemic began to take hold in 2020, cargo traffic to ports slumped drastically. But then it recovered and has been booming since.
“We understand the frustration expressed by the protestors at California ports,” Port of Oakland Executive Director Danny Wan said in the port statement. “But, prolonged stoppage of port operations in California for any reason will damage all the businesses operating at the ports and cause California ports to further suffer market share losses to competing ports.”
While the port handles many different types of cargo, it is an important distribution point for California's agricultural products.
“The supply chain already is in crisis. This is a huge disruption,” Peter Friedmann, executive director of the Agriculture Transportation Coalition told the Wall Street Journal.
Wed, July 20, 2022
OAKLAND, Calif. (AP) — Truckers protesting a state labor law have effectively shut down cargo operations at the Port of Oakland, it was announced Wednesday.
“The shutdown will further exacerbate the congestion of containers" and port officials are urging operations at shipping terminals to resume, a port statement said.
The protest that began Monday involves hundreds of independent big-rig truckers that have blocked the movement of cargo in and out of terminals at the port, which is one of the 10 busiest container ports in the country, according to its website.
There was no immediate word on when the protest might end but it's exacerbating supply-chain issues that already have led to cargo ship traffic jams at major ports and stockpiled goods on the dock.
The protest comes as toymakers and other industries enter their peak season for imports as retailers stockpile goods for the fall holidays and back-to-school items.
The truckers are protesting Assembly Bill 5, a gig economy law passed in 2019 that made it harder for companies to classify workers as independent contractors instead of employees, who are entitled to minimum wage and benefits such as workers compensation, overtime and sick pay.
A federal appeals court ruled last year that law applies to some 70,000 truck drivers who can be classified as employees of companies that hire them instead of independent contractors.
The International Brotherhood of Teamsters called it a “massive victory" for exploited truckers. But the California Trucking Association, which sued over the law, had argued the law could make it harder for independent drivers who own their own trucks and operate on their own hours to make a living by forcing them to be classified as employees.
The legal battle stalled enforcement of the law but last month the U.S. Supreme Court recently decided it wouldn't review the decision.
Truckers are now asking Gov. Gavin Newsom to meet and discuss the issue.
Meanwhile, there's been no word on when the state might begin enforcing the law, which is still being contested in lower courts.
Messages seeking comment from the governor's office and the Governor’s Office of Business and Economic Development weren't immediately returned Wednesday evening.
The director of the business and economic development office, Dee Dee Myers, emailed CNBC that “it’s time to move forward, comply with the law and work together to create a fairer and more sustainable industry for all.”
Ports already have been struggling to handle container traffic, much of it from Asia. After the COVID-19 pandemic began to take hold in 2020, cargo traffic to ports slumped drastically. But then it recovered and has been booming since.
“We understand the frustration expressed by the protestors at California ports,” Port of Oakland Executive Director Danny Wan said in the port statement. “But, prolonged stoppage of port operations in California for any reason will damage all the businesses operating at the ports and cause California ports to further suffer market share losses to competing ports.”
While the port handles many different types of cargo, it is an important distribution point for California's agricultural products.
“The supply chain already is in crisis. This is a huge disruption,” Peter Friedmann, executive director of the Agriculture Transportation Coalition told the Wall Street Journal.
California Port Closes Gates for Third Day Amid Protests
Augusta Saraiva and Ngai Yeung
Wed, July 20, 2022
(Bloomberg) -- California’s third-busiest port shut down some of its gates and marine terminals for a third day Wednesday as truckers protesting a gig-work law that could take 70,000 drivers off the road blocked access to the operation.
Management at the Oakland International Container Terminal decided to close operations due to the independent trucker protest, and the port’s three other marine terminals are effectively shut down for trucks, port spokesman Robert Bernardo said. Some vessel-labor operations were under way.
SSA Marine Inc., the largest terminal operator at Oakland, shut down all operations for the day Tuesday, he said.
Protests began across California last week after the Supreme Court on June 30 refused to review a case challenging the application of Assembly Bill 5 to truckers. The law, passed in 2019, requires workers satisfy a three-part test to be considered independent contractors, or else be seen as employees entitled to job benefits. About 70,000 truck owner-operators in the state must now comply with the law.
The trucking industry relies on contractors -- who until now have had flexibility to operate on their own terms -- and has fought to be exempt from state regulations for years.
“Ongoing protests will only drive Oakland customers away and encourage them to take their business to other seaports,” Bernardo said. “They need to take their message to Sacramento.”
After ranking as the fourth-busiest hub in the US just a few years ago, the Port of Oakland now barely cracks the top 10. Container traffic fell for three straight months through May on an annual basis as bottlenecks mount.
Import dwell time is rising at the fastest pace on the West Coast, with containers now sitting at the terminal for an average of 17.5 days, up from 12.4 last week, according to supply-chain data provider project44.
Bill Aboudi, president of trucking company Oakland Port Services, said truckers are planning to continue protesting every day until their concerns are heard.
“One day is OK and it doesn’t hurt the terminal,” he said. “But on the third they’re really hurting, and the fourth day they might retaliate.”
Dockworkers Affected
When faced with the demonstration outside of the ports, some dockworkers chose not to enter the terminal, Bernardo said.
The guiding principles of their labor organization -- the International Longshore and Warehouse Union -- state that “every picket line must be respected as it were our own.”
The union said in a statement on Twitter that it supports AB5. Farless Dailey III, the ILWU’s Local 10 president, said in a separate statement that “workers stood by on health and safety, as is permitted in our contract when conditions at the terminals present a risk.”
The ILWU contract that lapsed at the start of the month established union members have a right to refuse to cross legitimate and bona fide picket lines without being in violation of their labor duties.
The ILWU is currently negotiating a new contract for 22,000 dockworkers across 29 West Coast ports with the Pacific Maritime Association., which represents more than 70 employers. Discussions for a new agreement started on May 10 in San Francisco, and the most recent accord expired on July 1.
Both parties have reaffirmed their commitment to avoiding disruptions even as the expiration open the doors to strikes, lockouts and stoppages.
On Monday, ILWU International President Willie Adams expressed support for the 115,000 US rail workers as their labor-bargaining process enters a White House mediation phase after 2 1/2 years of failed discussions resulted in workers threatening to strike this week.
With the Biden administration’s intervention, the unions operating at 30 railroads won’t be able to strike at least until September.
“They heroically stayed on the job without a contract or a raise,” Adams said. “It is beyond time for the private railroad companies to reach a fair agreement with the rail workers who delivered the goods -- and the profits.”
(Updates with comment from trucker in ninth paragraph, ILWU in 13th)
Augusta Saraiva and Ngai Yeung
Wed, July 20, 2022
(Bloomberg) -- California’s third-busiest port shut down some of its gates and marine terminals for a third day Wednesday as truckers protesting a gig-work law that could take 70,000 drivers off the road blocked access to the operation.
Management at the Oakland International Container Terminal decided to close operations due to the independent trucker protest, and the port’s three other marine terminals are effectively shut down for trucks, port spokesman Robert Bernardo said. Some vessel-labor operations were under way.
SSA Marine Inc., the largest terminal operator at Oakland, shut down all operations for the day Tuesday, he said.
Protests began across California last week after the Supreme Court on June 30 refused to review a case challenging the application of Assembly Bill 5 to truckers. The law, passed in 2019, requires workers satisfy a three-part test to be considered independent contractors, or else be seen as employees entitled to job benefits. About 70,000 truck owner-operators in the state must now comply with the law.
The trucking industry relies on contractors -- who until now have had flexibility to operate on their own terms -- and has fought to be exempt from state regulations for years.
“Ongoing protests will only drive Oakland customers away and encourage them to take their business to other seaports,” Bernardo said. “They need to take their message to Sacramento.”
After ranking as the fourth-busiest hub in the US just a few years ago, the Port of Oakland now barely cracks the top 10. Container traffic fell for three straight months through May on an annual basis as bottlenecks mount.
Import dwell time is rising at the fastest pace on the West Coast, with containers now sitting at the terminal for an average of 17.5 days, up from 12.4 last week, according to supply-chain data provider project44.
Bill Aboudi, president of trucking company Oakland Port Services, said truckers are planning to continue protesting every day until their concerns are heard.
“One day is OK and it doesn’t hurt the terminal,” he said. “But on the third they’re really hurting, and the fourth day they might retaliate.”
Dockworkers Affected
When faced with the demonstration outside of the ports, some dockworkers chose not to enter the terminal, Bernardo said.
The guiding principles of their labor organization -- the International Longshore and Warehouse Union -- state that “every picket line must be respected as it were our own.”
The union said in a statement on Twitter that it supports AB5. Farless Dailey III, the ILWU’s Local 10 president, said in a separate statement that “workers stood by on health and safety, as is permitted in our contract when conditions at the terminals present a risk.”
The ILWU contract that lapsed at the start of the month established union members have a right to refuse to cross legitimate and bona fide picket lines without being in violation of their labor duties.
The ILWU is currently negotiating a new contract for 22,000 dockworkers across 29 West Coast ports with the Pacific Maritime Association., which represents more than 70 employers. Discussions for a new agreement started on May 10 in San Francisco, and the most recent accord expired on July 1.
Both parties have reaffirmed their commitment to avoiding disruptions even as the expiration open the doors to strikes, lockouts and stoppages.
On Monday, ILWU International President Willie Adams expressed support for the 115,000 US rail workers as their labor-bargaining process enters a White House mediation phase after 2 1/2 years of failed discussions resulted in workers threatening to strike this week.
With the Biden administration’s intervention, the unions operating at 30 railroads won’t be able to strike at least until September.
“They heroically stayed on the job without a contract or a raise,” Adams said. “It is beyond time for the private railroad companies to reach a fair agreement with the rail workers who delivered the goods -- and the profits.”
(Updates with comment from trucker in ninth paragraph, ILWU in 13th)
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