Shipping and Logistics
PMA Ratifies Port Contract—ILWU Vote on Friday
Written by Sandy Williams
May 21, 2015
The Pacific Maritime Association overwhelmingly ratified a new five year contract with the International Longshore & Warehouse Union. The vote on the contract by the ILWU is expected by the end of this week. If the contract is ratified by the ILWU it will be retroactive to July 1, 2014 and will run through June 30, 2019.
An enhanced arbitration system is featured in the contract that will support waterfront stability, capacity growth and productivity. PMA says it is the system is especially important given the increased competitive in environment at West Coast ports and the anticipated opening of the expanded Panama Canal.
The contract includes adjustment to health care charges and wage and pension increases for ILWU members.
“The West Coast ports are an economic engine for the United States, supporting millions of workers and trillions in economic impact,” said PMA President and CEO Jim McKenna. “The disruptions that occurred during negotiations, and the inconvenience and hardship created by them, were regrettable. We look forward to building upon the incredible advantages West Coast ports offer and winning back the trust and confidence of the shipping community. This contract provides important tools to accomplish that.
The protracted negotiations led to work stoppages and staggering backlogs of container cargo at West Coast Ports. Recovery is nearly complete with container ships no longer waiting to offshore to berth. The Marine Exchange reports that 16 ships were in port on Wednesday with a total of 23 more vessels expected to arrive through Saturday. Extra labor has been hired to deal with the backlogs. Man hours increased in Los Angeles and Long Beach to 451,872 hours per week in April from 398,287 hours a year ago.
The ports have been working to solve chassis problems that exacerbated the labor issues during the negotiations. The Long Beach Harbor Commission voted on Monday to accept bids for deployment of 1,000 chassis with another 2000 to be added at the port’s discretion. ILWU workers would be hired to maintain the chassis. The port authorities expect normal operations by the end of May.
Sandy Williams
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