September ’22 at-a-glance … supply chain

West coast port negotiations continue

Despite some rumors to the contrary, negotiations continue between the Pacific Maritime Association (PMA), representing employers at 29 ports along the West Coast, and the International Longshore & Warehouse Union (ILWU), which represents 15,600 dockworkers at those ports. NAFEM has been told the Biden administration continues to keep a close eye on negotiations and is in weekly communication with both parties. The contract expired July 1. PMA and ILWU have agreed not to publicly discuss the negotiations underway.

Also, according to the Journal of Commerce, members of the ILWU Local 26 security guard union authorized a strike in early September. The guards work at the majority of the 29 ports impacted by ongoing negotiations. “Officials are working to avoid a strike given the possibility that dockworkers would honor security officer picket lines, effectively shutting down the terminals.”

Compensation appears to be the key disagreement with the security guards, while automation is the major concern of the dockworkers.

Presidential Executive Order drives CHIPS Act implementation

President Biden issued an Executive Order establishing an interagency Implementation Steering Council to coordinate work on the Creating Helpful Incentives to Produce Semiconductors, CHIPS Act of 2022. The Steering Council is co-chaired by National Economic Director Brian Deese, National Security Advisor Jake Sullivan, and the Acting Director of the Office of Science and Technology Policy, Alondra Nelson. Other members of the Steering Council include:

  • Lloyd Austin, Defense Secretary   
  • Antony Blinken, Secretary of State
  • Avril Haines, National Intelligence Director  
  • Chris Inglis, National Cyber Director
  • Jennifer Granholm, Energy Secretary
  • Isabel Guzman, Small Business Administration  
  • Sethuraman Panchanathan, National Science Foundation 
  • Gina Raimondo, Commerce 
  • Susan Rice, Domestic Policy Council  
  • Cecilia Rouse, Council of Economic Advisers
  • Marty Walsh, Labor Secretary
  • Janet Yellen, Treasury Secretary
  • Shalanda Young, Office of Management and Budget 

The Executive Order establishes six primary implementation priorities:

  • Protect taxpayer dollars
  • Meet economic and national security needs
  • Ensure long-term leadership in the sector
  • Strengthen and expand regional manufacturing and innovation clusters
  • Catalyze private sector investment
  • Generate benefits for a broad range of stakeholders and communities

The Department of Commerce launched to communicate with the public about initiatives of the Act.