Dockworkers at ports along the West Coast have ratified a new contract, securing a six-year agreement that is expected to ease tensions and address the diversion of cargo shipments to other regions.
The contract was approved by 75 percent of the members who voted, according to the International Longshore and Warehouse Union, which represents the dockworkers. However, specific details of the agreement have not been publicly released, and the union declined to comment further. It is worth noting that unionized workers at the ports receive average salaries in the low six figures.
The agreement was reached between the union and the Pacific Maritime Association, which operates the terminals, covering 22,000 dockworkers at 29 ports from Los Angeles to Seattle. The negotiations took place over the course of a year and involved intervention from the Biden administration.
During the negotiation period, workers staged slowdowns, affecting the movement of goods and prompting some shipping companies to divert freight to ports along the Gulf and East Coasts. This shift in routes was compounded by a decline in cargo volume at major West Coast ports. For example, in July, the Port of Los Angeles reported a 25 percent decrease in imported cargo compared to the previous year, while Port Houston experienced its best July on record in processing cargo.
Geraldine Knatz, a former head of the Port of Los Angeles, expressed optimism that the contract’s ratification would encourage shipping companies to return to their previous routes and restore confidence in the West Coast ports. She anticipates an increase in cargo volume as a result.
Matthew Shay, president of the National Retail Federation, emphasized the importance of West Coast ports in supporting the business community nationwide. He acknowledged that the ratified agreement provides long-term stability and reassurance for businesses and employees relying on the operations of the ports.
In conclusion, the ratification of the new contract by West Coast dockworkers brings a sense of stability to the ports, addressing the challenges faced during negotiations and the diversion of cargo. The future looks promising for the West Coast ports as they aim to regain their previous levels of volume and maintain their critical role in the business community.
