The union for thousands of West Coast dockworkers has reached a tentative agreement on a new contract, it was announced Thursday, after more than a year of talks and several job disruptions that snarled shipping traffic at some of the largest ports.
The International Longshore and Warehouse Union reached the tentative deal for a new six-year contract with the Pacific Maritime Association, a trade group for cargo carriers and terminal operators. Its members include global shipping giants such as Maersk and Evergreen Marine.
The contract will require ratification by the PMA and union members and would affect 22,500 dockworkers at 29 ports from Washington state through California.
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The dockworkers have been without a contract since July 1.
West Coast ports handle about 40 percent of U.S. imports, and their smooth operation is so important that President Joe Biden even stepped in last year and met with both sides in Los Angeles.
The Port of Los Angeles handled 779,140 twenty-foot equivalent units last month, up 60 percent since February. The Port of Long Beach in May was the busiest month so far this year, signaling that volumes continue to increase.
“At mid-year we’re starting to see signs that cargo volume is on the upswing, with our busiest month since August of last year,” Port of Long Beach CEO Mario Cordero said this week. “We look forward to more positive signs in the months ahead.”
Lockouts in 2002 and an eight-day strike in 2015 cost the U.S. economy billions of dollars and forced the administrations of then-presidents George W. Bush and Barack Obama to intervene.
The ports weren’t completely shut down this time, but several intermittent worker slowdowns in recent weeks disrupted or closed some terminals in California and Washington.
“While there have been a couple terminal closures at Los Angeles/Long Beach around holidays, disruptions don’t appear to be having a meaningful impact so far. The situation, however, at the smaller Port of Oakland has been more concerning, leading to terminal closures and significant delays recently,” Orlando Wetherbee of Citi Investment Research said in a note to clients.
After the COVID-19 pandemic began to take hold in 2020, cargo traffic at ports dropped drastically. But then it rebounded. Soaring demand led to traffic jams at the twin ports of Los Angeles and Long Beach, the nation’s busiest port complex.
The union sought higher wages, arguing that they deserved a larger share of record profits made by shippers and terminal operators during the pandemic.
“ILWU workers risked and lost their lives during the pandemic to ensure grocery store shelves were stocked, PPE (personal protective equipment) was made available, essential medical supplies were reaching hospitals, and record levels of consumer goods continued to reach the doorsteps of American consumers,” argued an ILWU statement on June 2.
President Biden extended congratulations to the workers, cargo companies, and terminal operators Thursday afternoon.
“I want to thank both sides for staying at the table and reaching a deal,” Biden said. “And special thanks to the longshore workers who have worked throughout this pandemic, and heroically as well, and they’re finally going to get the pay and benefits and equality they deserve.”
Acting U.S. Secretary of Labor Julie Su was brought in to assist in the negotiations, and the White House hopes her role in sealing the deal helps to get her stalled nomination for the permanent position moving again.
“Special thanks to acting Secretary of Labor Julie Su who has used her deep experience and skill to keep the parties talking throughout the negotiations,” Biden said. “That’s going to have a real impact on commerce. She’s shown she’s a true leader, and I think she should be confirmed.”
The tentative agreement was praised by Los Angeles Mayor Karen Bass, who said port work generates one in 10 jobs in the city.
“This is a win for the working people of our city,” she said.
