Following a year of contract negotiations plagued by delays and a decline in cargo movement, union dockworkers and port operators along the West Coast have finally reached a tentative agreement that is set to last for six years.
In a joint statement released late on Wednesday, the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association announced a breakthrough in their discussions regarding a new contract, which covers the employment of 22,000 workers at 29 of the world’s busiest ports ranging from San Diego to Seattle. While specific details about the agreement were not immediately disclosed, it is expected to be formally ratified by both parties.
President Biden, who played a key role in urging a swift resolution to this lengthy negotiation process, expressed his congratulations to both sides for reaching this agreement “after a long and sometimes acrimonious negotiation.” Mr. Biden emphasized the effectiveness of collective bargaining and commended the port workers for their heroic efforts throughout the pandemic. He also thanked Julie Su, the acting U.S. Labor Secretary, for her assistance in finalizing the deal.
This outcome somewhat mirrors past negotiations between the ILWU and the Pacific Maritime Association, particularly the intervention by the Obama administration in 2015 amidst work slowdowns and increased congestion at ports. The focal points of the prolonged negotiations this time were disagreements regarding wages and the growing prominence of automation.
In recent weeks, the ILWU staged a series of work slowdowns at the ports of Los Angeles and Long Beach, resulting in a significant loss of business to ports along the Gulf and East Coasts. The Port of Los Angeles, a critical entry point for shipments from Asia, witnessed a decrease of approximately 40% in cargo processing in February compared to the previous year.
The U.S. Chamber of Commerce recently exerted pressure on President Biden, urging his administration to intervene immediately by appointing an independent mediator to facilitate an agreement between the two parties. Matthew Shay, President of the National Retail Federation, expressed concern over the ongoing delays and disruptions, which have adversely impacted retailers and other stakeholders relying on West Coast ports for their operations.
Following the announcement of the tentative agreement, Gene Seroka, head of the Port of Los Angeles, emphasized that it brings much-needed stability and confidence for customers. Meanwhile, Matt Schrap, CEO of the Harbor Trucking Association, expressed eagerness for a return to normal cargo traffic, highlighting the necessity for certainty after a long and arduous process.
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