ILWU Issue (Updated on 6/15)

Let's take a look at the negotiations between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA). Currently, the ILWU and the PMA expect labor negotiations to pass the July 1 deadline.

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1. The importance of negotiation

 

 According to industry estimates, ILWU represents port workers in California, Oregon and Washington, and more than 40% of container traffic to the United States travels through the West Coast ports of Los Angeles and the ports of Long Beach. PMA represents the shipping and terminal operators of 29 West Coast ports. Thus, the contract between ILUW and PMA represents more than 22,000 dock workers in all 30 ports on the west coast of the United States.

 

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2. Progress

 Negotiations between the parties began on May 10, and the ILWU and the PMA said negotiations would continue until a new agreement was reached.

 In addition, ILWU and PMA will launch the Battleship U.S.S. In California, with President Biden, they discussed a range of issues, including supply chain congestion and a joint commitment to reaching a collective bargaining agreement that is fair to both parties.

 In addition, the 30 ports on the west coast of the United States that are being negotiated are of absolutely vital economic importance, accounting for about 9% of U.S. GDP.

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3. Past Cases

 

1. It passed its expiry date in 2002, followed by an 11-day closure, costing the economy $10 billion, and reopening after the Taft-Hartley Act was invoked, which took three months to recover.
2. In 2008 there was an automation contract. At the time, it was resolved without interruption three weeks after the previous contract had expired.
3. In the case of 2014, there were no real major problems with the wage negotiation table, and it took 8 months to expire with some exhaustion to reach an agreement.
4. To reach a deadlock in labor negotiations Moreover, ongoing tensions between the parties have resulted in reduced productivity and have contributed to port congestion on the West Coast, particularly leading to the 2016 holiday season.

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4. Circumstances of concern

 

 The ILWU and the PMA agreed before negotiations on a media ceasefire began, but it turned out that automation was one of the stumbling blocks to the talks. The PMA pointed out that the salaries of wharf workers on the west coast are approaching $195,000, and the union countered that total profits for the maritime shipping industry could reach $150 billion in 2021.

 According to the Port Tracker Report, inbound retail container volumes will reach record levels in the coming months. One of the reasons is uncertainty about the West Coast contract negotiations. The supplies related to the opening of the school are already arriving, and there will be an increase in stock due to the holidays shortly thereafter.

thank you.