The International Longshore and Warehouse Union, which represents port workers up and down the U.S. West Coast, has completed voting on a proposed extension to its existing labor deal and early indications are that the extension will be approved.
The International Longshore and Warehouse Union (ILWU), which represents dockworkers up and down the U.S. West Coast, appears to be closing in on a three-year contract extension with its terminal operator employers.
The ILWU said in a statement Friday afternoon it has completed voting on a proposed extension to its existing collective bargaining agreement with the Pacific Maritime Association (PMA), and early indications are that the extension will be approved by a 67 percent majority. The union will announce the official results of the vote on Aug. 4.
The current ILWU-PMA labor deal, which was struck in 2015 after a lengthy and contentious negotiation that left many West Coast ports highly congested and the supply chains of those that depended on them in disarray, was scheduled to expire on July 1, 2019. But after the last round of contract negotiations, trade organizations representing shippers and transportation providers began urging ILWU President Robert McEllrath and PMA Chairman and CEO James McKenna to begin early discussions on either a contract extension or a new contract.
The two sides in September agreed to come to the negotiating table to “discuss the concept of a contract extension.” The ILWU said its members have spent the last year debating the proposed contract extension, which it says will raise wages, maintain health benefits, and increase pensions for dockworkers.
“The ILWU was founded on principles of democracy, and the rank-and-file always have the last word on their contracts,” McEllrath said of the contract extension. “There was no shortage of differing views during the year-long debate leading up to this vote, and members didn’t take this step lightly. In the end, the members made the final decision to extend the contract for three years.”
“Earlier this year, PMA proposed a contract extension with the intent of creating long-term certainty for West Coast ports and all stakeholders,” McKenna said in a separate statement. “Early voting returns show strong ILWU support for our proposal, which would ensure labor stability through 2022. This historic agreement will be great news for the maritime industry, as well as our customers, workers, port communities, and the U.S. economy.
“With this contract extension, the West Coast waterfront has a tremendous opportunity to attract more market share and demonstrate that our ports and our workforce are truly world-class,” he added. “We are fully committed to delivering the highest standards of reliability and productivity for years to come. I look forward to working with ILWU President Bob McEllrath in the months ahead to ensure that the West Coast sets the standard for service and efficiency, and is the destination of choice for cargo entering and exiting the United States.”
Officials at the Port of Oakland, one of the 29 West Coast ports covered by the labor agreement, applauded the ILWU and PMA for their willingness to come to the table early to get a deal done, adding that the extension would “ease concerns about labor-management disputes that can arise when waterfront contracts are negotiated.”
“This shows that the West Coast means business when it comes to moving cargo for our customers,” Port of Oakland Executive Director Chris Lytle said in a statement. “We’re the most efficient, timely and cost-effective gateway for international trade and with a contract extension, we’re also the most dependable. We feel that a decision to extend the contract reflects improving relations and performance up and down the West Coast.”
Jonathan Gold, vice president for supply chain and customs policy at the National Retail Federation (NRF) said the agreement “will provide the stability and predictability that NRF’s members and other supply chain stakeholders need to move their cargo efficiently through our ports.”
“Nobody wants to see a repeat of the problems that were experienced in 2014-2015, and this remarkable sign of good faith on the part of both labor and management ensures that such a situation will be avoided,” he added. “We hope the parties will continue future negotiations in a similar manner.”
The contract extension puts the spotlight on the International Longshore Association (ILA) and United States Maritime Alliance (USMX), the East Coast counterparts to the ILWU and PMA, respectively, to get a new deal done before their existing agreement expires in September 2018. The ILA and USMX in February held informal contract discussions in Delray Beach, Fla. that both sides said were “productive and fruitful.”
West Coast dockworkers likely to approve 3-year contract extension
