The Pacific Maritime Association and the International Longshore and Warehouse Union announced a tentative agreement on a new six-year contract covering workers at all 29 West Coast ports, according to a joint statement.
The talks dragged on for more than a year to replace the previous contract that expired in July.
The deal comes as the pandemic supply-chain crisis eases and the world’s largest economy struggles with inflation and rising interest rates. While import volumes are down across the US, West Coast ports have been losing market share as shippers diverted their goods to East and Gulf Coast maritime hubs, in part to avoid potential disruptions as labor talks dragged on.
“We are pleased to have reached an agreement that recognizes the heroic efforts and personal sacrifices of the ILWU workforce in keeping our ports operating,” PMA President James McKenna and ILWU President Willie Adams said in a joint statement. “We are also pleased to turn our full attention back to the operation of the West Coast Ports.”
The parties did not release details of the agreement, which was reached with assistance from Acting US Secretary of Labor Julie Su. It is subject to ratification by both parties.
Su, who has been attending the talks this week in San Francisco said in a separate statement the tentative deal demonstrates “collective bargaining — though sometimes difficult — works.”
“The tentative agreement delivers important stability for workers, for employers and for our country’s supply chain,” she added.
The White House had faced heightened calls from industry to intervene over the last two weeks as labor-related disruptions spread up and down West Coast ports. The administration preferred a resolution without its direct involvement, but was also keen not to have new supply chain disruptions arise as President Joe Biden begins his reelection campaign.
US retailers and importers who diverted goods to East and Gulf Coast ports during the year-long contract negotiation have said they won’t bring cargo back to West Coast ports until a deal is ratified, which can take several weeks.
--With assistance from Jordan Fabian.
(Updates with Labor Secretary’s comment, starting in sixth paragraph.)
