After a year of contract negotiations that resulted in numerous delays and reduced freight traffic at ports along the West Coast, unions and port authorities have reached a tentative agreement that will last six years.
In a joint statement released late Wednesday, the International Union of Ports and Warehouses and the Pacific Maritime Association will target 22,000 workers in 29 ports, some of the world’s busiest ports from San Diego to Seattle. announced a tentative agreement on a new contract.
Details of the deal, which the two sides are expected to formally ratify, were not immediately made public.
President Biden, who stepped in last year to urge a speedy resolution, issued a statement congratulating the parties on reaching an agreement “after long and sometimes bitter negotiations.”
“As I always say, collective bargaining works,” Biden said. “Most of all, we congratulate the dockers who have worked heroically through the pandemic and the myriad challenges it has brought, ultimately earning the pay, benefits and quality of life they deserve.”
Biden also thanked Acting U.S. Secretary of Labor Julie Hsu for her help in closing the deal.
Wednesday’s result reflects, to some extent, past negotiations between the two countries. In 2015, Obama administration officials intervened when negotiations dragged on for nine months, hit by a slowdown in work and increased port congestion.
Long-running negotiations between the union and the Pacific Maritime Association, which represents shipping terminals, have focused on disagreements over wages and the growing role of automation.
The Longshore Warehousing Union (ILWU) has staged a series of business slowdowns in recent weeks at ports in Los Angeles and Long Beach, which have seen significant volumes of trade from ports along the Gulf and East Coast in recent months. have lost Cargo throughput at the Port of Los Angeles, an important entry point for cargo from Asia, fell about 40% year-on-year in February.
Recently, the U.S. Chamber of Commerce sent a letter to Mr. Biden urging the administration to immediately intervene in negotiations and appoint an independent mediator to help the parties reach a deal.
National Retail Federation President Matthew Shay said the ongoing delays and disruptions are hurting retailers and others who rely on West Coast ports for their business operations.
“As we head into the all-important shipping season for holiday merchandise, retailers need a seamless flow of containers through ports to distribution centers,” said Shay.
Port of Los Angeles Port Superintendent Jean Seroka said in a statement on Wednesday that the interim agreement between ILWU and the Pacific Maritime Authority “brings the stability and confidence our customers have been asking for.”
Matt Schlapp, chief executive of the Harbor Trucking Association, a trade association of shipping companies that serve West Coast ports, said the association is keen to get freight traffic back to normal soon. .
“We need certainty,” he said. “This was a long and arduous process.”
