West Coast Port employers and union reach contract agreement

Employers representative the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) announced late on the 14th June that after 13 months of negotiation they had finally reached an agreement on a new six-year contract covering all 29 ports along the US West Coast. The deal is subject to ratification.

The week started with ILWU members continuing to “flex their industrial action muscle” and the PMA inching toward a “lockout” and any chance of a contract deal looked more remote than ever.

In the past week there was an increase of 13% in dwell times for the five major west coast ports, with Tacoma, Oakland and Seattle dwell times up 87%, 43% and 24% respectively.

Acting Labor Secretary Julie Su joined negotiators in San Francisco earlier this week after a series of unofficial industrial actions affected port operations and it seems her intervention “played a key role” in reaching an agreement.

The West Coast ports are a critical gateway and there will be pressure for both parties to quickly ratify the tentative agreement to bring certainty back to the West Coast ports.

Uncertainty over the dependability of West Coast ports has negatively impacted the region’s market share as shippers diverted cargo to East and Gulf coasts, with the West Coast’s share of US imports from Asia declined 6% over the last two years.

In May, the number of shipments going to West Coast ports was down 41%, with only 35% of US imports going to the west coast, with LA and Long Beach’s average shipment volumes declining by 18% and 17% compared with the start of the year.

The details of the deal will not yet be released, but with the ILWU seeking to essentially double the hourly wage for general longshore workers, their deal is likely to form the basis for upcoming talks with the International Longshoremen’s Association (ILA) on the East and Gulf coasts and negotiations with the Office Clerical Union, which represents about 500 workers at 15 marine terminals and ocean carriers in and around Los Angeles-Long Beach.

If you are shipping through the West Coast and have any concerns, we can review your situation, explain your options and, if necessary, consider alternative access ports in Canada, the Gulf and on the East Coast.

We work closely with our partners in the US to handle ocean, air and customs brokerage, with domestic transport for collection and delivery.

Reach out to Lewis Atkinson to learn more.