West Coast Port Labor Discussions

In late 2014 and early 2015, the West Coast labor issue caused severe port congestion. Even after the new labor contract agreement was reached, clearing the backlog and returning port traffic to normal levels took several months.

At the recent U.S. Meat Export Federation conference, the CEO of the Pacific Maritime Association James McKenna shared that the first round of talks between the PMA and the International Longshore and Warehouse Union had happened on the possible extension of their port labor contract which runs through July 1st of 2019. He said that it was positive and that it will not be a long drawn out process.

McKenna noted that that many industries were affected the period of disruption, and this has led to much greater scrutiny of the negotiating process by members of Congress and other government officials.  

McKenna: "Since the contract was ratified, we've seen a flurry of activity in Washington, D.C. calling for Maritime legislation attempting to mitigate or stave out future disruptions. There is a belief among the sponsors that the current negotiations process is not sustainable and has potential to cause irreparable harm to economy. I agree. So it is clear to me that the challenges that both management and labor face is the need for predictability and reliability. And to that end, it is incumbent upon us to find a better path forward. And if in fact we ever do get into a position where we are into elongated negations, I can guarantee you they will be front and center a lot sooner than when we are nine months into it."