Is the supply chain saved? U.S. West Coast labor negotiations reach a preliminary agreement!

It is learned that as the retail industry enters the peak shipping season, labor negotiations at US West Coast ports have made significant progress. The Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) have reached a six-year tentative agreement.

The two groups have been in negotiations since the labor contract expired last July, and negotiations have become tense again in recent weeks as workers at the Oakland and Long Beach terminals have gone on strike.

The agreement, which covers 22,000 workers at all 29 ports on the West Coast of the United States, was reached with the assistance of Acting U.S. Labor Secretary Julie Su, according to the report. The agreement still needs to be approved by both parties, and specific details have not yet been announced.

“We are pleased to have reached an agreement after seeing the heroic efforts and personal sacrifices ILWU employees have made to keep ports open,” PMA President James McKenna and ILWU President Willie Adams said in a joint statement. “We are also pleased to turn our full attention back to operating West Coast ports.”

The Retail Industry Leaders Association (RILA) of the United States warmly celebrated the news of the tentative agreement for West Coast ports. "West Coast ports are a key link in the retail supply chain. With the conclusion of the tentative agreement, retailers will have confidence in the operation of the supply chain; consumers can also rest assured that the goods they purchase will arrive on time; in addition, the risk of inflationary pressures facing the US economy will be greatly reduced." The association said in a statement.

"We appreciate the engagement of the Biden Administration and the Acting Secretary of Labor, and we encourage swift approval and passage of this agreement to ensure any shutdowns are avoided and that retailers' ability to supply consumers is not impacted," RILA added.

Earlier this month, the National Retail Federation (NRF) urged the Biden administration to intervene in labor negotiations at West Coast ports to prevent disruptions to ocean shipments during the holiday shopping season.

“We are pleased to see that the two sides have reached a tentative agreement on labor operations at West Coast ports, ending more than a year of negotiations and uncertainty,” said Matthew Shay, NRF President and CEO. “West Coast ports are important arteries for retailers and other businesses to enter the U.S. market. We urge all parties to quickly ratify the tentative agreement to bring certainty to West Coast ports and begin the negotiation process for the next labor contract as soon as possible to avoid future interruptions in continuity.”

Editor ✎ Nicole/

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