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Industry Reacts to West Coast Port Labor Deal

by Staff, on Jun 26, 2023 12:18:26 PM

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President Joe Biden, several ports and industry trade groups all expressed relief and support for the tentative deal.

The International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) reached a tentative agreement in the West Coast labor dispute on June 14. The tentative agreement lasts for six years and covers the 29 ports responsible for most U.S. imports.

This tentative deal was reached after more than a year of negotiations. The prolonged talks left stakeholders worried about wide-scale disruption as negotiations prolonged and exposed tensions. The fear of a strike or lockout at West Coast ports only grew over the past two weeks, as a lack of labor in terminals led to multiple gate closures and slowdowns in June. This is of particular concern to food companies that have global supply chain strategies involving ocean shipping.

Concerns are now at lower levels. Industry leaders, including several trade associations, organizations and ports, were quick to show their relief and support after the tentative deal was announced Wednesday. Here are reactions and notable formal statements:

President Joe Biden

“As I have always said, collective bargaining works, and I congratulate both parties at the ports for reaching an agreement. I want to thank Acting Labor Secretary Julie Su who used her deep experience and judgment to keep the parties talking, working with them to reach an agreement after a long and sometimes acrimonious negotiation. Above all I congratulate the port workers, who have served heroically through the pandemic and the countless challenges it brought, and will finally get the pay, benefits, and quality of life they deserve.” Read more

Jay Timmons, President & CEO, National Association of Manufacturers

“Manufacturers welcome last night's announcement of a long-term deal between the ILWU and PMA. Certainty at America's West Coast ports ensures reliability in domestic shipping lanes and keeps manufacturing in America competitive and thriving.” Read more

Matthew Shay, President & CEO, National Retail Federation

“We are relieved to see the parties have come to a tentative mutual agreement on a long-term contract for labor operations at the West Coast ports, ending over a year of negotiations and uncertainty. A new agreement provides stability to the supply chain and assurance to the millions of businesses and employees who rely on smooth and efficient operations from the West Coast ports.” Read more

Retail Industry Leaders Association

“It’s encouraging to hear that a tentative agreement has been reached between negotiating parties on the West Coast, not just for retailers, but for every industry that relies on this global commerce gateway. The West Coast ports are key links in the retail supply chain. With a tentative agreement in place, retailers can keep their supply chains moving with more certainty, consumers can rest assured their items will arrive on time, and the U.S. economy has a reduced risk of more looming inflationary pressure.” Read more

Suzanne P. Clark, President & CEO, U.S. Chamber of Commerce

“The U.S. Chamber commends the West Coast ports and union leadership for reaching this hard-fought agreement that prevents a widespread work stoppage and significant economic harm. We also thank Acting Labor Secretary Julie Su for staying committed to the process and helping both parties reach this agreement. The West Coast ports are critical arteries for the nation’s economy, and therefore this agreement is a win for American businesses, consumers, and our economy.” Read more

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