West Coast Ports: Talks Going Smoothly
Though no contract yet, the talks are going smoothly.
From JOC:
Yet even though it now looks like it will be sometime in August before a new agreement is in place, no one is panicking and tensions appear low. Why? The reason is that McKenna in his TPM comments was true to his word in another, far more important sense. He predicted that cargo would flow unimpeded across the West Coast docks during the negotiations — in stark contrast to the last two contract negotiations, in 2002 and 2008. And so far, at least, that is exactly what’s happened.
Below is a chart highlighting the contrasts of negotiations between 2014 and 2008 thus far:
| ILWU-PMA Negotiations: 2008 vs. 2014 | |
| 2008 — Contract expires July 1, 2008 | 2014 — Contract expires July 1, 2014 |
| May 17, 2007: Two sides agree more than a year prior to expiration of the contract to pursue early negotiations. Both sides said they are “committed to good faith negotiations.”March 17, 2008: Contract talks begin on an early, optimistic note. “The ILWU and PMA agreed to begin talks well ahead of the contract expiration to provide sufficient time to resolve key issues and concerns.” Press releaseApril 3, 2008: “Talks progressing” The ILWU and PMA “have exchanged documents, asked clarifying questions about them and continued formal discussions aimed at reaching a fair and reasonable agreement before the current six-year contract expires on July 1, 2008.” Press releaseMay 1, 2008: Strike: “The International Longshore and Warehouse Union today struck West Coast ports from Southern California to the Pacific Northwest, bringing cargo operations to a virtual standstill.” Press releaseMay 22, 2008: Negotiations progressing: “With more than one month remaining before the current waterfront labor pact expires, negotiations continue” No mention is made of keeping cargo moving. Press releaseJune 17, 2008: “Progress continues in labor talks” The statement said, “Both sides are committed to resolving outstanding issues at the table and to keep West Coast Ports running smoothly.” Press releaseJuly 1, 2008: At expiration, the PMA said it is “working hard to resolve the remaining issues in contract negotiations with the (ILWU).” Press release July 11, 2008: New disruption begins: PMA states ILWU “ordered workers to change standard workplace practices without the approval or knowledge of the employers. According to the PMA, the ILWU “ordered workers to change standard workplace practices without the approval or knowledge of the employers.” The PMA added, “It is concerning to us that the Union has taken this step unilaterally during such a sensitive time in the contract negotiations.” July 12, 2008: Disruption spread to the PNW. PMA says ILWU locals “walked off the job at the Port of Tacoma for several hours Friday.” July 16, 2008: Disruption spreads: According to the PMA, the ILWU “expanded disruptive job actions at terminals at the twin ports of Los Angeles and Long Beach, leading to widening productivity losses.” July 25, 2008: Disruption spreads further: PMA says: “Continuing disruptive labor actions by the International Longshore and Warehouse Union (ILWU) at the ports of Los Angeles and Long Beach are entering their third week. Some terminals are reporting extreme productivity falloffs.” July 28, 2008: Preliminary agreement announced on new six-year agreement. |
May 12, 2014: Contract talks begin. Joint statement says, “Both sides say they expect cargo to keep moving until an agreement is reached.” Press releaseJune 4, 2014: PMA and ILWU jointly provide brief update, saying “Both parties remain at the table and are working to reach agreement on a new coast-wide contract. Press releaseJuly 1, 2014: At contract expiration, PMA and ILWU jointly state: “While there will be no contract extension, cargo will keep moving, and normal operations will continue at the ports until an agreement can be reached.” Press releaseJuly 7, 2014: PMA and ILWU jointly announce 72-hour suspension of negotiations. Press releaseJuly 11, 2014: PMA and ILWU jointly announce resumption of negotiations, saying “Although there is currently no contract in place, both parties have pledged to keep cargo moving.” Press releaseJuly 18. 2014: PMA and ILWU jointly announce two day break from negotiations. The say, “While there is no contract extension in place, both parties have pledged to keep cargo moving.” Press releaseJuly 25, 2014: PMA and ILWU jointly announce suspension of talks from July 28-Aug. 1. They state, “While there is no contract extension in place, both parties have pledged to keep cargo moving.” Press release |
Both sides will plan to resume negotiations on August 4th. The delay is because the ILWU is temporarily diverted to the Pacific Northwest due to a dispute over staffing at grain terminals. This dispute is not related to the ILWU/PMA negotiations.
Concerns – major issues are still unresolved like the $150 million-a-year healthcare ‘Cadillac’ tax set to come due in 2018.The issue is so controversial there is a possibility that the six year contract maybe reduced to a 3-year contract. Read More
Superior Freight Services, Inc. can assist if you have questions or concerns. Please feel free to contact us at superior@supfrt.com or call 800.298.4305.
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