Out of the frying pan

COMMENT: Things are getting serious on the US West Coast: due in part to ongoing negotiations with labour at US West Coast ports not enough potatoes have been getting through to Japan for McDonald’s to meet demand for its French fries, writes Mike Mundy.

In mid-December, the fast food chain reported that outlets in Japan had been compelled to offer only small size servings of French fries to customers. And this despite moving 1,000 tons of processed potatoes by air to Japan and despatching an extra shipment from the US East Coast.

Perhaps if the shoe were on the other foot and it was the 20,000 members of the International Longshore and Warehouse Union (ILWU) that were denied a full portion of French fries then it would hasten the end of what has in recent weeks become an increasingly bitter dispute?

Delays at container ports along the US West Coast have been growing since October 2014 and the negotiations between the Pacific Maritime Association (PMA), representing terminal operators and shipping lines at 29 West Coast ports, and the ILWU have become increasingly stale-mated. The war of words with terminal operators and shipping lines has seen the ILWU accused of implementing slowdowns to maximise their negotiating position.

Following the expiry of the last six year arrangement on July 1 2014, it is good to hear that in early January the Federal Mediation and Conciliation Service finally agreed to get involved to revive the stalled negotiations.

Clearly, with the talks achieving little between October 2014 and January 2015, a new approach is required. In late August, a provisional deal was arrived at on health care expenses but other key issues such as how to retain jobs for dockers as the application of automation is extended still need to be resolved.

It is still a case of ‘watch this space’ but hopefully the entrance of Federal mediators will have the desired effect including putting big portions of french fries back on the menu again in Mc Donald’s outlets in Japan.