The West Coast longshore union and its employers have reached a preliminary six-year contract, putting an end to 13 months of negotiations that saw tensions escalate in recent weeks. Accusations and disagreements about bad-faith actions had caused concern for the ports of Los Angeles and Long Beach, who were worried about potential loss of business. The announcement of the deal was made on June 14th by Gary Herrera, president of the union’s local chapter. However, the ratification of the contract by longshore union members is still pending, and the timing for the vote is unknown. The specific details of the contract were not released in the joint press statement made by the union and the Pacific Maritime Association (PMA), which represents employers.
The agreement came soon after the Journal of Commerce reported that the PMA and the International Longshore and Warehouse Union (ILWU) had agreed to a “cooling off period” following weeks of growing unease during the negotiations. Julie Su, the acting labor secretary for the Biden administration, arrived in San Francisco to assist in facilitating the tense discussions.
In a joint statement, PMA President James McKenna and ILWU President Willie Adams expressed their satisfaction with the deal, acknowledging the immense efforts and sacrifices made by the ILWU workforce to keep the ports operational. They also extended their gratitude to Julie Su for facilitating the negotiations. Julie Su also expressed her appreciation for both parties in reaching a tentative agreement, emphasizing the importance of stability for workers, employers, and the country’s supply chain.
Contract negotiations had begun in May 2022, and the previous labor contract between the ILWU and the employers had expired in July of that year. Dockworkers had been working without a current contract since then. Despite moments of optimism throughout the 13-month process, an agreement had yet to be reached. The main point of contention had been wages.
As tensions grew, port officials expressed concerns about potential business losses and retailers diverting their operations to ports on the East and Gulf coasts. However, with the preliminary labor agreement now in place, there is hope that cargo volumes at the ports of Long Beach and Los Angeles will stabilize. Jonathan Gold, the National Retail Federation’s vice president of supply chain and customs policy, stated that the finalized agreement provides the much-needed stability and certainty for retailers and shippers to resume operations at the West Coast ports.
The agreement is not only essential for boosting cargo numbers on the West Coast but also for stabilizing the national and global supply chain, which has experienced significant disruptions due to the ongoing COVID-19 pandemic. Port and local elected officials, along with industry leaders, expressed their satisfaction with the deal, recognizing the critical role played by the goods movement workforce in keeping the economy moving.
The tentative agreement between the ILWU and the PMA is seen as a positive step towards regaining normalcy in the supply chain. The importance of this agreement cannot be overstated, as it provides much-needed stability and confidence to customers and helps promote economic recovery in the United States.
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