Update on US West Coast ILWU Contract Negotiations

As the July 1st expiration of the ILWU contract draws near, all are cautiously optimistic that an agreement will be reached without disruption to U.S. port operations.  Since talks between the Pacific Maritime Association (PMA) and ILWU representatives began on May 12, negotiations have progressed without notable issue, however, hindsight is keeping everyone on their toes.  As is common in these types of negotiations, shortly before contract expiration, union members will leverage the looming date to push their stance on more contentious terms.  If strikes or operational slowdowns will occur, this is typically the time such tactics are used.  Whether carrier, terminal operators or retailers, few have forgotten the chain of events that occurred in the 2002.  When negotiations hit a standoff a 10-day employer lockout ensued.  This lockout cost the US economy billions of dollars due to lost sales, factory down time and exacerbated transportation cost and these monetary damages stretched to other countries moving within this trade. To limit the potential impacts on their businesses, many importers and exporters have planned ahead.  In April, container activity in the pacific southwest ( ports of Los Angeles, Oakland CA ) were 10% higher than volumes in April 2013.

 

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