California stands firm against truck protests in Port of Oakland

“While this has been the subject of litigation, AB 5 was enacted in 2019, so no one should be surprised by the requirements of the law at this time,” said a spokesman for the governor’s office.

the protesters gave no indication that they were planning to give up, Hundreds of men and women, who began the protest on Monday, are blocking trucks from carrying goods into and out of Oakland, the West Coast’s third-busiest container port. They are also preventing dockworkers from reaching their posts for loading and unloading of ships.

Stoppages are particularly hurting 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 nut processor in Stockton, Calif., said two shipments scheduled to go out this week are getting delayed and customers are canceling orders.

“If this continues, I don’t know what we’re going to do,” Ms Solari said. “We will literally be sitting on the last of our 2021 harvest and not be able to ship it.”

The pause in Oakland flared up unexpectedly. Shippers recently l. are more concerned aboutAbor talks on 29 West Coast ports as well as contract negotiations freight rail workers and their employers. Labor talks of both are going on.

Steve Lamar, chief executive of the American Apparel and Footwear Association, said that although only 1.5% of their members’ cargo comes via Oakland, there are waves up and down the disruption coast.

“The protests in Oakland send goods to other overcrowded ports and come at a time when we are eyeing not one but two labor negotiations in the region,” Mr Lamarr said.

The employment law, aimed at tightening the definition of independent contractors in the “gig economy,” was due to go into effect in 2020, but was held up as part of a lawsuit filed by the California Trucking Association.

The US Supreme Court declined to review the case on June 30, while the law was allowed to apply if the legal challenge continued.

Proponents of the law say it is designed to protect workers by securing equal pay and benefits to employees. In California, an estimated 70,000 independent owner-operated truck drivers complement the employee-driver workforce.

The International Brotherhood of Teamsters, which is trying to organize drivers in California, says trucking companies misclassify drivers as independent contractors to deny them fair pay and benefits.

Many owner-operators say they like to be independent. He says the new law will require him to secure his permits and insurance, which will make it more difficult and expensive to stay in business. They say the law forces them to take up work as employees or leave the industry.

The Newsom administration says it has provided information to help drivers comply with the law and has offered truck drivers tax incentives and small-business financing.

“California is committed to supporting our truck drivers and ensuring our state’s truckers receive protection and compensation,” a spokeswoman for the Democratic governor said.

The International Longshore and Warehouse Union, which represents West Coast dockworkers, supports AB5. But union officials say their members cannot get through the protests safely.

Farless Daly III, president of ILWU Local 10, said on Thursday that 450 dockworkers have been sent to port jobs this week, but have not been able to reach their positions.

“ILWU workers want to work and carry cargo,” Mr Daly said. “But we’re not going to harm our members for going through a line of truck drivers.”

write to Paul Berger paul.burger@wsj.com