{"id":20447,"date":"2022-05-05T12:00:48","date_gmt":"2022-05-05T12:00:48","guid":{"rendered":"https:\/\/www.odysseylogistics.com\/?p=18595"},"modified":"2023-12-28T06:43:12","modified_gmt":"2023-12-28T06:43:12","slug":"ilwu-pma-contract-negotiations","status":"publish","type":"blog","link":"https:\/\/www.odysseylogistics.com\/blog\/ilwu-pma-contract-negotiations\/","title":{"rendered":"What the current ILWU and PMA contract negotiations mean for shippers"},"content":{"rendered":"\t\t
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A look at how the upcoming port labor negotiations could impact transportation networks and the shippers that rely on them to get their goods from origin to destination.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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As of May 23rd<\/strong>, contract talks between the ILWU and PMA have been suspended until June 1, 2022, however, individual committee meeting between both sides are continuing.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\t\t\t\tThe June 30 deadline for a new labor deal between the International Longshore & Warehouse Union workers (ILWU) and the Pacific Maritime Association (PMA) is beginning to come into clearer view and the potential impacts on shippers, carriers and transportation networks could be significant. \t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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According to the New York Times<\/i><\/a>, the ILWU represents nearly three-fourths of the union members who work at the ports of Long Beach and Los Angeles, the primary gateways for shipments coming to the US from Asia.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\u201cA labor impasse could worsen the floating traffic jams that have kept dozens of ships waiting in the Pacific before they can pull up to the docks,\u201d the publication points out. \u201cThat could aggravate shortages and send already high prices for consumer goods soaring.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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This isn\u2019t great news in light of the current supply chain snarls, transportation delays and other pandemic-driven logistics issues that companies are currently working around. \u201cEven in quieter times, the prospect of union negotiations at some of the world\u2019s busiest ports presents the legitimate possibility of a significant impediment to world trade,\u201d the New York Times points out. \u201cThese are not quiet times.\u201d\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Retailers are Concerned<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The National Retail Federation (NRF) is urging ILWU and PMA to begin contract negotiations well before the upcoming deadline to help ensure continued cargo movement. A potential 7-year contract for the 29 PMA locations that are all under the master contract would cover more than 15,000 port and office workers at some of nation\u2019s busiest water and inland container ports, including Los Angeles, Long Beach, Oakland, Portland, Ore., and Seattle\/Tacoma, as well as other waterfront locations along the Pacific Coast.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\u201cWe know key issues for both parties need to be worked out during this contract negotiation and believe the parties should sit down now and not wait to begin negotiations,\u201d NRF President Matthew Shay wrote, as reported by Transport Topics<\/i><\/a>.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Cautiously Optimistic<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\u201cWe\u2019re optimistic about negotiations and look forward to sitting down with the employers in May,\u201d Willie Adams, ILWU international president, told\u00a0JOC.<\/i>\u00a0\u201cWhen the handkerchief drops, we\u2019ll be ready,\u201d added PMA President Jim McKenna, who will lead the employers in the negotiations.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\u201cAny cautious optimism is based on the cooperation that was demonstrated by longshore workers and employers in handling the import surge,\u201d JOC<\/i>\u00a0adds, \u201cthat is now in its 20th month amid the COVID-19 pandemic.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Worth Watching<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Gartner\u2019s Brian Whitlock told Logistics Management<\/i><\/a>\u00a0that the contract renewal is important for two reasons. \u201cFirst, it was extended in 2017 and was last negotiated in 2015,\u201d he said. \u201cThat means the current agreement has run for seven years without change.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Second, the renewal comes at a time when US ports remain congested\u2014a situation that\u2019s not expected to ease this year. \u201cIf labor disruptions occur during these contract negotiations,\u201d Whitlock added, \u201cit will create compounding disruptions that will further reduce supply chain performance and push port recovery into 2023.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Next Steps<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Contract negotiations between ILWU and West Coast employers are set to begin on May 12. In the meantime, JOC<\/i><\/a>\u00a0says some cargo owners have already started shifting their volumes to the East and Gulf coasts to avoid any potential problems.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

A look at how the upcoming port labor negotiations could impact transportation networks and the shippers that rely on them to get their goods from origin to destination.<\/p>\n

As of May 23rd, contract talks between the ILWU and PMA have been suspended until June 1, 2022, however, individual committee meeting between both sides are continuing.<\/p>\n","protected":false},"author":8,"featured_media":22256,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"blog_category":[74,103],"class_list":["post-20447","blog","type-blog","status-publish","has-post-thumbnail","hentry","blog_category-industry-trends","blog_category-intermodal"],"acf":[],"yoast_head":"\nWhat the ILWU and PMA Contract Negotiations Mean for Shippers - Odyssey Logistics<\/title>\n<meta name=\"description\" content=\"A look at the current ILWU & PMA Contract Negotiations and how the upcoming port labor negotiations could impact transportation and shippers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.odysseylogistics.com\/blog\/ilwu-pma-contract-negotiations\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What the ILWU and PMA Contract Negotiations Mean for Shippers - 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