New Contract Tentatively Agreed Upon by Dockworkers and Shippers

There is a sense of optimism on Thursday that the long-standing discord at West Coast ports will soon come to an end. The union representing dockworkers and the shippers industry group announced a tentative agreement on a six-year contract, covering more than 22,000 longshore workers at all 29 West Coast ports, on Wednesday night.

Although details of the agreement have not been released, it is subject to ratification by members of the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA).

In a joint statement, PMA President James McKenna and ILWU President Willie Adams expressed their pleasure at reaching an agreement that acknowledges the heroic efforts and personal sacrifices of the ILWU workforce. They also stated their delight in being able to fully focus on the operation of the West Coast ports.

The negotiations for a new contract to replace the expired one began several months ago. The ILWU had raised concerns about the drop in wages and benefits compared to the rising revenues of the PMA from pre-pandemic levels through 2022.

On the other hand, the PMA accused the union of engaging in work slowdowns, which led to rolling closures of container terminals.

The tentative agreement was achieved with the assistance of acting U.S. Secretary of Labor, Julie Su.

Los Angeles Mayor Karen Bass welcomed the news of the proposed agreement, expressing that it is a victory for the working people of the city, as about 40% of West Coast imports pass through the Port of Los Angeles, generating jobs for the locals.

The tentative agreement also brings stability and confidence to the customers, according to Port of Los Angeles Executive Director Gene Seroka. Meanwhile, Long Beach Mayor Rex Richardson praised the deal for providing a sense of security to the ILWU jobs and bringing peace of mind to businesses and workers in goods movement and port-related industries across Southern California.

International labor economist Jock O’Connell of Beacon Economics viewed the proposed deal as a positive sign for the West Coast ports and everyone involved in cargo transportation through them. However, he emphasized that the ports still have work to do in assuring shippers and customers in the aftermath of recent disruptions that caused significant delays in the movement of goods.

O’Connell also mentioned that the ratification process may take several weeks and stressed that the agreement has not been finalized yet.

President Joe Biden expressed his praise for Secretary Su’s efforts in facilitating the deal, particularly in the face of challenging negotiations.

In conclusion, there is hope for a resolution to the West Coast ports’ issues with the announcement of a tentative agreement on a new contract. While the exact details remain undisclosed, the agreement is now in the hands of the ILWU and the PMA for ratification. This development brings optimism and stability to the ports, but further work is needed to regain trust from shippers and customers. The ratification process may still take some time, but the efforts of all parties involved, including Secretary Su, are commendable in resolving this ongoing dispute.

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