California Gov. Gavin Newsom is cracking down on protesters who have this week shut down most operations at the Port of Oakland, saying truckers “need to focus on supporting this transition” to a new employment law, even as shippers warned that the impasse is hurting their business.
Mr. Newsom’s administration indicated Thursday that it would not bow to demands by protesters to halt implementation of the new state law, known as AB5, that would make it harder for tens of thousands of independent truckers in the state to work.
“Although it has been the subject of litigation, AB 5 was passed in 2019, so no one should be surprised by the law’s requirements at this time,” a spokesman for the governor’s office said.
The protesters have given no indication that they plan to give up. Hundreds of men and women who began protesting Monday are blocking trucks from transporting cargo to and from Oakland, the West Coast’s third-busiest container port. They also stop dock workers from reaching their loading and unloading stations.
The shutdown particularly hurts the region’s agricultural exporters, who use Oakland as a hub.
Nina Solari, vice president of food safety and quality control at Avanti Nut Co., a family-owned walnut processor in Stockton, Calif., said two shipments scheduled to go out this week are being delayed and customers are canceling orders.
“If this continues, I don’t know what we’re going to do,” Ms. Solari said. “We’re literally going to be sitting on our last crop of 2021 and not be able to ship it.”
Subscribe to regular news
The logistics report
Top news and in-depth analysis of the world of logistics, from supply chain to transport and technology.
The shutdown in Oakland erupted unexpectedly. Shippers have recently been more concerned about labor negotiations at the 29 West Bank ports, as well as contract negotiations between freight rail workers and their employers. Both labor negotiations are ongoing.
Steve Lamar, CEO of the American Apparel and Footwear Association, said that while only 1.5 percent of its members’ shipments come through Oakland, disruptions there are growing up and down the coast.
“The protests in Oakland are diverting cargo to other congested ports and come at a time when we are tracking not one, but two labor negotiations in this space,” Mr Lamar said.
The jobs law, aimed at tightening definitions of independent contractors in the “gig economy,” was set to go into effect in 2020 but was delayed as part of a lawsuit filed by the California Trucking Association.
On June 30, the US Supreme Court declined to hear the case, allowing the law to apply while the legal challenge continues.
Supporters of the law say it aims to protect workers by providing them with wages and benefits similar to those enjoyed by employees. In California, about 70,000 independent owner-operator truck drivers supplement the employee-driver workforce.
The International Brotherhood of Teamsters, which is trying to organize drivers in California, says trucking companies have misclassified drivers as independent contractors to deprive them of fair wages and benefits.
Many owner-operators say they like being independent. They say the new law will require them to obtain their own permits and insurance, making it harder and more expensive to stay in business. They say the law forces them to seek employment as employees or leave the industry.
The Newsom administration says it has provided information to help drivers comply with the law and has offered truckers tax incentives and small business funding.
“California is committed to supporting our truckers and ensuring that our state’s truckers receive the protection and compensation they are entitled to,” a spokesman for the Democratic governor said.
The International Coastal and Warehousing Union, which represents West Coast longshoremen, supports AB5. But union officials say their members can’t get through the protests safely.
ILWU Local 10 President Farless Daley III said Thursday that 450 longshoremen were sent to work at the port this week but were unable to make it to their posts.
“ILWU workers want to work and move loads,” Mr. Daly said. “But we’re not going to put our members in danger of going through the line of truck drivers.”
Email Paul Berger at Paul.Berger@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
Add Comment