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After three days of bruising talks there still is no settlement to the ongoing labor negotiations between shipping executives and union leaders along 29 west coast port facilities.

Reuters reported U.S. Labor Secretary Tom Perez first joined the talks in San Francisco on Tuesday at the behest of President Barack Obama, who has come under growing political pressure to intervene in a conflict that has rippled through the trans-Pacific commercial supply chain and could cost the U.S. economy billions of dollars.

The San Jose Mercury News reported that a contentious issue in negotiations has been a union demand that the four arbitrators who resolve labor disputes be given terms that run the length of a contract, typically four to six years. Currently, they serve indefinitely. The maritime association contended the requirement would destroy the arbitrators’ independence.

Federal mediators have joined the negotiations in an attempt to end the stalemate, but caught in the middle over benefits and other issues are businesses across America who deal in the import/export business.

This comes at a fragile time for the economy just as it was gaining some traction now this disruption could have the impact of reducing the nation’s gross domestic product and increase prices for consumers.

Bloomberg News reported that West Coast ports are responsible for more than 43 percent of U.S. trade, according to the Pacific Maritime Association’s annual report, and 12.5 percent of the U.S. gross domestic product. A closing would cost the U.S. economy as much as $2 billion a day, the association said, citing figures from a 2002 lockout that lasted 10 days and cost roughly $1 billion a day.

Bloomberg continued to report that On Feb. 4, management made details of its contract offer public, including 3 percent annual raises and maintaining employer-paid health care and pension programs. The average unionized dockworker currently makes $147,000 a year, according to the management press release.

The union disputes that figure, saying it assumes significant overtime and includes non-salary benefits. Most dockworkers take home less than $100,000 a year, it says.

If no agreement is reached the union can order a strike for its members and the port employers can lock out workers as was the case back in 2002 which cost the economy 415 billion in lost revenue to economy.

If either scenario plays out the Obama administration can invoke the Taft-Hartley Act to force a re-opening of the ports as was the case back in 2002, when then President Bush utilized this provision after the lockout stretched for more than 10 days.

Let’s hope cooler heads prevail.