Contract expired, but West Coast port labor talks continue
The union representing about 22,000 West Coast dockworkers and their employers will continue negotiations for a new labor contract past Friday’s expiration of their current pact and said the ports — among them the U.S.’ busiest — will keep functioning.
“While there will be no contract extension, cargo will keep moving, and normal operations will continue at the ports until an agreement can be reached between the Pacific Maritime Association and the International Longshore and Warehouse Union,” the parties said in a joint statement Friday.
The ILWU and the more than 70 employers represented by the PMA started talks May 10 to work out a new contract for longshore workers across 29 ports in California, Oregon and Washington. Although the current agreement ended Friday at 5 p.m., the groups had recently said they were unlikely to reach a deal before then and had reaffirmed neither party was preparing for a strike or lockout. Talks often go past the expiration.
“Both sides understand the strategic importance of the ports to the local, regional and U.S. economies, and are mindful of the need to finalize a new coast-wide contract as soon as possible to ensure continuing confidence in the West Coast,” the ILWU and PMA said.
Port of Long Beach Executive Director Mario Cordero said the sides are showing they remain committed to keeping goods passing through the ports, and he projected that a deal over a new contract will be reached soon.
“I’m extremely confident that there will be a mutual resolution here within a reasonable time,” Cordero said in an interview with Bloomberg
TV. “I can guarantee you the cargo is going to keep moving.”
The ports handle just under half of the containers entering and leaving the U.S. and are the principal gateway for shipments to and from China, the biggest source of American merchandise imports — illustrating the high-stakes nature of the negotiations.
Last November, the ILWU declined an offer by the PMA to extend the contract until July 2023. The current pact was originally set to end in 2019 but was lengthened after roughly two-thirds of union members voted to do so in exchange for higher wages and better pensions.
This time, the negotiations are drawing attention because the nation’s largest trade hubs — the ports of Los Angeles and Long Beach — are struggling to clear pandemic-era congestion.
The economic stakes are high: July and August are typically busy months for imports from Asia as retailers stock up on back-toschool and holiday goods. The peak has arrived even earlier this year, with companies looking to preempt disruptions by ordering products further ahead.
Additional transportation snarls would only add to inflationary pressures that have helped pull down President Biden’s approval ratings. Biden met with the parties in Los Angeles in June.
The talks will also test how far a major union will apply its bargaining leverage during an economic slowdown, given the country is facing a moment of unusual clout for its long-declining labor movement.