ILWU Issue(Updated on 5/24)

1. Progress of negotiations

 The International Longshore and Warehouse Union (ILWU) has asked several sources close to negotiations to suspend contract negotiations with the Pacific Maritime Association (PMA) until June 1.
 The reason for the ILWU's suspension of negotiations is currently unclear, and various sources say little progress has been made since negotiations began on May 10.

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2. Past-story

 At the time of past negotiations, ILWU allowed the existing contract with PMA to expire first. This is because the “no strike” clause will be nullified unless both companies agree to extend the contract. In other words, it was because a strike was possible without an extension of the contract.

1) At the time of the 2002 negotiations: the ILWU began work slowdowns in the summer and the PMA responded with an employer lockout.

2) At the time of the 2014 negotiations: the ILWU began work slowdowns in Seattle in late October and then moved the job action quickly down the coast to Oakland and Southern California.

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3. Prospects for negotiations

 ILWU's strategy of dragging out negotiations until the expiration of the existing contract is unlikely to exert influence in negotiations this year(2022). The Biden administration established a port envoy in the fall of 2021, and met with ILWU stakeholders almost every week in this office. A member of the TF made it clear to both employers (PMA) and labor unions (ILWU) two months ago that the ILWU's lockout or deliberate slowing down of work will not be tolerated this year.

 Therefore, there is a possibility of conflict called port terminal automation, but it is unlikely that the Biden administration's active intention to intervene will lead to a port closure that is worrisome in the market.

 

Thanks.