Deal struck for new six-year labour contract along the US west coast 

The Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union have finally reached a deal for a new six-year labour contract at 29 west coast ports, bringing to a close a fraught 13 months of stalled negotiations, walk-outs and cargoes emigrating to alternate locations. 

The deal was reached with assistance from acting secretary of labour Julie Su, the PMA said in a tweet, adding that the agreement is subject to ratification by both parties.  Specific details of the agreement have not been revealed yet.

“This afternoon, the leaders of the International Longshore and Warehouse Union and the Pacific Maritime Association reached a tentative agreement covering 22,000 workers and 29 west coast ports, demonstrating once again that collective bargaining — though sometimes difficult — works,” a statement by the acting labour secretary said yesterday. Su jetted into California at the start of this week to try and thrash out a deal amid sporadic industrial action taking place at many terminals along the west coast. 

PMA president James McKenna and ILWU president Willie Adams said in a joint statement: “We are pleased to have reached an agreement that recognises the heroic efforts and personal sacrifices of the ILWU workforce in keeping our ports operating. We are also pleased to turn our full attention back to the operation of the west coast ports.”

Analysis by container advisory CTI Consultancy shows very minimal backlogs of ships waiting at the main box terminals along the US west coast today. 

Commenting via LinkedIn, Lars Jensen, CEO of container consultancy Vespucci Maritime, stated that the risk of major disruptions has been averted.

“The next thing to monitor is whether this will lead to some cargo shifting back from the east to the west coast over the coming months. The problem with the low water level in the Panama Canal might act as a catalyst for such a reversal,” Jensen suggested.

With the spectre of industrial action shippers had migrated many port calls to the east and Gulf coasts over the past year. However, a severe drought has seen the Panama Canal institute draft restrictions cutting containership capacity travelling from Asia to the US east coast.

In Canada, meanwhile, unionised dockworkers have agreed to a 72-hour walkout at the ports of Vancouver and Prince Rupert, likely scheduled for the end of this month.