Tentative West Coast Agreement

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The US west coast and supply chains around the globe breathed a sight of relief as it was announced that a tentative agreement had been reached and the US west coast ports will be opened. Although the effects won’t be immediate, if the agreement is ratified, traffic through the port should be back to normal levels and flow within a few months.

Late Friday last week it was announced that the parties involved had reached a tentative agreement that in the end could result in a 5 year agreement.

The ILWU represents about 20,000 workers throughout 29 ports along the North American west coast, including the ports of Los Angeles and Long Beach. Before the agreement goes into effect, it must be ratified by the ILWU representatives. Additionally, the PMA, or Pacific Maritime Association must also ratify the deal to put the agreement into full effect.

Both parties are remaining silent on the matter until Friday.

Last week the PMA and ILWU did release a joint statement that declared, “After more than nine months of negotiations, we are pleased to have reached an agreement that is good for workers and for the industry.”

Perez, the U.S. Secretary of Labor was sent by the Obama administration as the divide between the PMA and ILWU remained wide and causing collateral damage to other industries within the United States that require the flow of goods through west coast ports, especially perishable goods.

Perez was dispatched following a formal petition by the National Retail Federation who described the action, or rather, inaction at west coast ports to be on the level of a crime.

If a deal is not made by Friday night, Perez would force the move of talks from San Francisco, California to Washington D.C.

The public straining of the relationship between the ILWU and the PMA became obvious when the PMA closed the harbors at night in response by the ILWU’s refusal to dispatch crane operators to the ports. Essentially it became a public tit for tat process that had drawn comments from a range of American demographics, even from individuals far removed from west coast port operations.

For the moment the outlook on west coast port activity in North America is looking bright. However, until Friday no outcome is final.

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