Trucker protest shuts down operations at California port

OAKLAND, Calif. — Truckers protesting a state labor regulation have successfully shut down cargo operations on the Port of Oakland, it was introduced Wednesday.

“The shutdown will additional exacerbate the congestion of containers” and port officers are urging operations at transport terminals to renew, a port assertion mentioned.

The protest that started Monday includes a whole lot of unbiased big-rig truckers which have blocked the motion of cargo out and in of terminals on the port, which is likely one of the 10 busiest container ports within the nation, in response to its web site.

There was no quick phrase on when the protest may finish however it’s exacerbating supply-chain points that have already got led to cargo ship visitors jams at main ports and stockpiled items on the dock.

The protest comes as toymakers and different industries enter their peak season for imports as retailers stockpile items for the autumn holidays and back-to-school gadgets.

The truckers are protesting Meeting Invoice 5, a gig financial system regulation handed in 2019 that made it tougher for corporations to categorise staff as unbiased contractors as a substitute of workers, who’re entitled to minimal wage and advantages resembling staff compensation, additional time and sick pay.

A federal appeals court docket dominated final yr that regulation applies to some 70,000 truck drivers who could be categorised as workers of corporations that rent them as a substitute of unbiased contractors.

The Worldwide Brotherhood of Teamsters known as it a “huge victory” for exploited truckers. However the California Trucking Affiliation, which sued over the regulation, had argued the regulation may make it tougher for unbiased drivers who personal their very own vehicles and function on their very own hours to make a residing by forcing them to be categorised as workers.

The authorized battle stalled enforcement of the regulation however final month the U.S. Supreme Court docket just lately determined it would not overview the choice.

Truckers at the moment are asking Gov. Gavin Newsom to satisfy and focus on the problem.

In the meantime, there’s been no phrase on when the state may start implementing the regulation, which remains to be being contested in decrease courts.

Messages searching for remark from the governor’s workplace and the Governor’s Workplace of Enterprise and Financial Improvement weren’t instantly returned Wednesday night.

The director of the enterprise and financial improvement workplace, Dee Dee Myers, emailed CNBC that “it’s time to maneuver ahead, adjust to the regulation and work collectively to create a fairer and extra sustainable business for all.”

Ports have already got been struggling to deal with container visitors, a lot of it from Asia. After the COVID-19 pandemic started to take maintain in 2020, cargo visitors to ports slumped drastically. However then it recovered and has been booming since.

“We perceive the frustration expressed by the protestors at California ports,” Port of Oakland Government Director Danny Wan mentioned within the port assertion. “However, extended stoppage of port operations in California for any cause will harm all the companies working on the ports and trigger California ports to additional endure market share losses to competing ports.”

Whereas the port handles many various kinds of cargo, it is a vital distribution level for California’s agricultural merchandise.

“The provision chain already is in disaster. It is a large disruption,” Peter Friedmann, govt director of the Agriculture Transportation Coalition instructed the Wall Avenue Journal.