After a year contract negotiation leading to more delays and declines in freight operations at ports along the West Coast, the union of harbor workers and port operators have reached an agreement that is expected to last for six years.
In a joint statement released late Wednesday, the International Coalition of Warehouses and Coasts and the Pacific Maritime Association announced a tentative agreement on a new contract covering 22,000 workers. at 29 ports from San Diego to Seattle, one of the busiest ports in the world.
Details of the deal, which is expected to be formally ratified by both parties, were not immediately released.
President Biden, who walked in last year to urge a quick solutionissued a statement congratulating both sides on reaching an agreement “after a long and sometimes acrimonious negotiation”.
“As I’ve always said, collective bargaining works,” Biden said. “Above all, I congratulate the port workers who have served heroically throughout pandemic and the myriad challenges it brings, and ultimately getting the pay, benefits and quality of life they deserve.”
Biden also thanked acting US Labor Secretary Julie Su for helping to finalize the deal.
Wednesday’s results partly reflect past negotiations between the two sides. In 2015, when negotiations had been going on for nine months, officials in the Obama administration intervened amid stalled work and increased congestion at ports.
Protracted negotiations between the union and the Pacific Maritime Association, which represents shipping ports, have centered on disagreements over wages and the expanding role of automation.
In recent weeks, the Longshore and Warehousing Alliance, or ILWU, has organized a series of work delays at the ports of Los Angeles and Long Beach, which in recent months have lost a large amount of their operations. business into the hands of ports along the Gulf and East Coast. Cargo handling at the port of Los Angeles, the main entry point for shipments from Asia, fell about 40% in February from a year earlier.
Recently, the American Chamber of Commerce wrote to Mr. Biden calling on the administration to immediately intervene in the negotiations and appoint an independent mediator to help the two sides reach an agreement.
Matthew Shay, president of the National Retail Federation, said the ongoing delays and disruptions have had a negative impact on retailers and other stakeholders that rely on West Coast ports for business. business.
“As we enter the critically important peak shipping season for holiday goods, retailers need a seamless flow of containers through ports and to their distribution centers,” said Mr. Surname.
On Wednesday, Gene Seroka, head of the Port of Los Angeles, said in a statement that the tentative deal between ILWU and Pacific Maritime “provides the stability and confidence customers are looking for.”
Matt Schrap, executive director of the Harbor Trucking Association, a trade group for shipping companies serving West Coast ports, said his organization is looking forward to a return to normalcy soon.
“We need certainty,” he said. “This is a long and difficult process.”
