Newest story updated February 23rd, 2015 – see below for further updates to this story.
Original story posted January 13th, 2014 / By Chad Laden, Regional VP of Operations
The following is a summary of our presentation to the US-China Business Connections (UCBC) on January 8th, 2014:
The International Longshore & Warehouse Union (ILWU), which represents labor in 29 west coast ports, recently called a meeting with the Pacific Maritime Association (PMA), which represents the carriers and terminals (ILWU employers). The current 6 year labor contract between them is set to expire July 1st, 2014, so the ILWU and PMA are working fastidiously to find a common ground to renew labor contracts.
The main issue during negotiations is not wages, but healthcare and welfare costs and coverage. Also points of contention in contract renewals are:
– Jurisdiction: the union seeking to expand jurisdiction to grain terminals and equipment repair as they understand this is where their future employment opportunities will grow to
– Chassis: carriers are divesting chassis to 3rd parties, which union believes will cause job loss
– Picket line language from local unions, such as ILWU members in Vancouver, WA and Portland over being locked out of grain terminals
If the ILWU and PMA fail to reach a common ground and sign a new contract before July 1st, we may encounter slowdowns at the port, work stoppages, or even worse, port strikes throughout the West Coast, all of which will delay imports and exports from moving in and out.
Here are some steps you can take today to safeguard your imports and exports:
– Remain aware of the situation
– Engage your partners for further information, plans, and options
– Ship early
– Consider the East Coast and Canadian routings
– Plan for slowdowns and stoppages at the ports around contract signing time
– Be prepared for all possible outcomes
Preparing a contingency plan will help you regardless of if a strike occurs or not. Your supply chain will be strengthened and your skills sharpened through the exercise.
For more information, or help preparing your contingency plan, please contact your GLOBAL customer service representative. Don’t forget to follow us on Twitter, Facebook, and LinkedIn for more industry and company news.
For updates to this story, click here:
Update 2/23: Update on West Coast Port Conditions – February 23rd
Update 2/23: West Coast ports easing back into full production, PMA says
Update 2/23: Most West Coast ports in full swing to make up for lost time
Update 2/20: ILWU, PMA reach tentative five-year agreement
Update 2/20: US Labor Secretary to ILWU, PMA: Reach deal or negotiate in DC
Update 2/19: West Coast employers attempt end run around ILWU leadership
Update 2/17: ILWU, PMA talks resume with labor secretary
Update 2/16: Obama sending labor secretary to mediate ILWU-PMA dispute
Update 2/13: Pressure builds for US government action on West Coast
Update 2/11: PMA to halt ship work on four of next five days
Update 2/11: Hanjin confirms it will leave Portland following two years of labor conflict
Update 2/9: Are ILWU negotiators withholding PMA offer from rank-and-file members?
Update 2/9: West Coast ports expected to resume normal operations on Monday
Update 2/6: U.S. West Coast terminals suspend weekend vessel work
Update 2/4: PMA details ILWU contract offer in attempt to prevent West Coast lockout
Update 2/3: LA-Long Beach, Oakland, PNW congestion reaches critical stage
Update 2/2: 19 container ships anchored off LA-Long Beach ports
Update 1/27: ILWU Local 8 shuts down Portland container terminal Tuesday
Update 1/26: ILWU, PMA reach tentative agreement on chassis maintenance and repair
Update 1/21: US West Coast marine terminals resume daytime shifts
Update 1/19: US West Coast marine terminals suspend Monday vessel shifts to reduce backlog
Update 1/16: Update on US West Coast Port Conditions – January 16th
Update 1/16: Ships back up at US West Coast ports after night vessel work ends
Update 1/13: PMA statement ‘ominous’ in pointing to possible lockout
Update 1/13: Despite mediator, war of words escalates between ILWU, PMA
Update 1/9: US Customs: We’re not letting up until LA-LB backlog clears
Update 1/7: Hopes rise as PMA-ILWU talks move under federal mediator guidance
Update 1/6: Update on West Coast Port Conditions – January 6th
Update 1/6: ILWU joins PMA in requesting federal mediation
Update 12/30: ILWU, PMA continue war of words in tit-for-tat press releases
Update 12/22: PMA requests federal mediation in stalled West Coast longshore talks
Update 12/18: Update on West Coast Port Conditions – Dec. 18th
Update 12/17: ILWU recesses caucus, awaits PMA response to contract proposal
Update 12/16: ILWU responds to PMA labor contract offer
Update 12/11:Update on West Coast Port Conditions – Dec. 11th
Update 12/8: Caucus will determine whether ILWU signs tentative contract or not
Update 11/28: Update on West Coast Port Conditions – Nov. 28th
Update 11/24: Update on West Coast Port Conditions – Nov. 24th
Update 11/24: Seattle, Tacoma ports urge PMA-ILWU mediation
Update 11/21: ILWU and PMA to take 12 day break from main contract negotiations
Update 11/20: Update on West Coast Port Conditions – Nov. 20th
Update 11/19: Update on West Coast Port Conditions – Nov. 19th
Update 11/17: Update on West Coast Port Conditions – Nov. 17th
Update 11/14: Update on West Coast Ports / Congestion and Wait Time Surcharges
Update 11/13: Update on West Coast Conditions
Update 11/13: Congress increases pressure on ILWU, PMA to reach deal
Update 11/12: Global’s update about current Seattle / Tacoma port situation
Update 11/7: Fearing US West Coast shutdown, shippers urge Obama to send labor mediator
Update 11/4: Shippers pressure Obama administration to send ILWU-PMA mediator
Update 11/3: ILWU: Dishonest media offensive by PMA jeopardizes contract negotiations and deflects from a growing congestion problem
Update 11/3: ILWU slowdowns in Seattle, Tacoma raise fears of spreading to LA-LB
Update 11/3: PMA: Longshore union initiates orchestrated work slowdowns, crippling Pacific Northwest ports
Update 9/23: Strike threat low despite lack of West Coast longshore contract
Update 9/22: ILWU and PMA negotiators likely dealing with productivity issues
Update 9/02: ILWU ratifies deal with PNW grain handlers
Update 8/26: ILWU and PMA Agree to Health Benefits
Update 8/26: Retailers warn of rising risks of lack of ILWU contract
Update 7/28: ILWU and PMA talks recessed until August 4th
Update 7/18: ILWU talks to recess Monday for union caucus
Update 7/14: ILWU and PMA Negotiations Resume
Update 7/14: Striking LA and Long Beach Port Truckers Return to Work
Update 7/11: Los Angeles and Long Beach Driver Strike Continues
Update 7/09: Canadian National Railway Imposes Cargo Allocations at Canadian Ports
Update 7/08: ILWU Workers in LA Walk Off Job, Arbitrator Rules They Must Return to Work
Update 7/08: 72-hour break briefly reinstates ILWU contract
Update 7/07: Teamsters initiate trucker strike at LA-Long Beach
Update 7/02: ILWU and PMA Issue Statement Pledging No Disruption
Update 6/30: West Coast Port Contract Expiring Tonight and Port Congestion Surcharge Watch
Update 6/27: West Coast Contract Negotiations Likely to Extend Past June 30 Contract Expiration
Update 6/16: ILWU Talks Continue As Many Hope for Resolution
Update 6/06: PMA & ILWU Provide Update on Contract Talks
Update 5/28: Potential 2014 ILWU Strike FAQ
Update 5/28: ILWU and PMA Continue Labor Negotiations
Update 5/14: ILWU and PMA Begin Daily Labor Negotiations
Update 4/25: ILWU-PMA West Coast Labor Negotiations Should Begin Mid-May