ILWU Issue (Updated on 6/28)

 Further progress regarding the labor-management agreement for the western port of the United States has not been disclosed, but it is understood that it is taking time to negotiate port automation, which is directly related to jobs. Let's take a look at the situation so far.

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1. Labor-management negotiations have been in progress since May 10, 2022, and negotiations were temporarily suspended on 5/20 and resumed on 6/2.
   . The first phase (medical insurance benefits, etc., work safety regulations), the second phase (maintenance jurisdiction, technology automation), and the third phase (wage negotiation) are being negotiated, and the first phase is currently in progress. The key issues are automation (level 2) and wages (level 3).
   . High continuity of negotiations until after 7/1 on the contract expiration date (Expecting further negotiations for at least one month based on past history).
2.  President Biden of the United States is actively working to eliminate congestion in the port supply chain and manage risks, such as designating a port manager within the logistics improvement task force and visiting LA Port directly.
   · Port and Supply Chain Envoy (Stephen Lyons) has been appointed, and the Western Port is under special management (actively involved in resolving congestion in LA/LB ports, such as applying the port container dwell fee policy)
   June 10, President Biden visits Los Angeles Port and holds a meeting of labor and management representatives: Delivered the position that stagnation in the logistics supply chain due to disruptions in port operation during labor-management negotiations is unacceptable.
   ·June 14, joint statement between ILWU and PMA: Negotiations are likely to be made until after 7/1, but negotiations will be conducted without ILWU strike or PMA lockout.

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[Histroy cases]

2002: After the ILWU strike continued for nine days, President Bush invoked the Taft-Hartley Act to force return to work.
2015: PMA forced port closure. Accordingly, two weeks later, President Obama took effect of the compulsory adjustment.

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• 6/16, President Biden signed the Ocean Shipping Reform Act 2022: One of the top priorities of the government is the policy to counter inflation.
    ※ Ocean Shipping Reform Act 2022 (OSRA-22): Authorization to investigate/action on shipping companies by the US Federal Maritime Commission (FMC), duty to prove justification of imposition of demurrage on shipping companies, reasonable demurrage/detention Obligation to write on the invoice after calculation

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• Expected conclusions
  Considering the intervention of the US government and the joint statement of PMA-ILWU, it is expected that the settlement will be reached without a strike or port closure, and even in the event of some sabotage, it is expected that the government will intervene early to normalize it.

 

Thanks.