Port contract negotiations make progress

The Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) have reached a tentative agreement on chassis maintenance and repair at West Coast ports. The issue has been a key sticking point between the two parties, which have been negotiating a new contract for longshoremen at West Coast ports for nine months.

The earlier agreement, which covered 20,000 dockworkers at 29 West Coast ports, expired in July 2014. As the two parties sought a new agreement, work at the ports slowed down appreciably.

The slowdown has created a significant logjam for many shippers, who have been reporting a decline of 20 percent more in their business in light of the ports’ inability to load container lines in a timely fashion.

While a federal mediator has been involved in the talks since early in 2015, both sides have been unwilling, until most recently, to give up much ground on the issues, according to reports.

Kurt Nagle, president and CEO of the American Association of Port Administrators, says, “We’re pleased and encouraged with the reported progress toward a successful conclusion of these protracted labor negotiations. Ports are a critical part of the American supply chain and economy, with 12.5 percent of the U.S. GDP tied to the efficient movement of goods through our West Coast ports alone in 2013.”

Overall, across the nation, cargo moving through America’s ports is responsible for more than 13 million jobs and more than $200 billion in federal, state and local tax revenue, Nagle continues. Scrap materials such as recovered fiber and scrap metals are among the top categories of cargoes.

“Ensuring that cargo moves efficiently through all of our ports must be a national priority and isn’t just a West Coast issue,” Nagle notes. “The faster the two sides in the West Coast port labor contract negotiations can reach a just, long-term agreement, the sooner our system of ports can get back to ensuring the efficient delivery of goods, jobs, international competitiveness and overall prosperity that our nation has come to depend upon.”