Growing Unrest as West Coast Port Workers and Employers Fail to Reach Contract Agreement

Employers blame dockworkers for cargo delays at the Los Angeles and Long Beach ports as coastwide negotiations move into their 10th month

Unionized dockworkers at the ports of Los Angeles and Long Beach have stopped staggering work shifts during mealtimes, leading to delays in cargo operations and backups of trucks at terminal gates

Rising Tensions in West Coast Port Contract Talks

Tensions are escalating in the ongoing contract negotiations at West Coast ports, as employers allege that unionized dockworkers are deliberately slowing down cargo handling at the ports of Los Angeles and Long Beach, the busiest entry points for imported consumer goods in the United States.

This marks a departure from the previous agreement to maintain public silence on negotiation-related matters, which have been ongoing since last spring. The parties involved seem no closer to resolving their disagreements, potentially leading to further disruptions in U.S. trade flows.

Pacific Maritime Association's Accusations

The Pacific Maritime Association (PMA), representing ocean carriers and port employers, claimed on Monday that dockworkers in Los Angeles and Long Beach ceased staggering work shifts during mealtimes starting last Wednesday. This has reportedly led to terminals shutting down for an hour in the afternoon and another hour at night every day, causing "significant delays" in cargo operations and extensive truck backups at terminal gates.

Union Response to Accusations

Willie Adams, the president of the International Longshore and Warehouse Union (ILWU) representing dockworkers, argued that his members have the right to take lunch breaks like everyone else. Union officials added that various factors can contribute to truck backups outside terminals and accused the PMA of focusing on recent queues to sway public opinion.

Background of Negotiations

This is the first public dispute between the PMA and the ILWU since they started negotiating a multi-year contract in May 2022, covering over 22,000 dockworkers at 29 ports from California to Washington. The previous agreement expired in July, and the dockworkers have been operating without a contract since then. As recently as February 23, the PMA and the ILWU released a joint statement expressing hope for a deal and stating that negotiations were ongoing. Talks were set to resume on Tuesday, according to the PMA.

Past and Present Challenges

Contract negotiations over the past two decades have been fraught with tension, resulting in freight delays that cost retailers millions of dollars in increased expenses and lost sales due to slowed operations and worker lockouts.

Shipping industry executives and Biden administration officials had hoped for smoother negotiations this time around, particularly in light of the COVID-19 pandemic highlighting the critical role of West Coast ports in the U.S. economy. Some administration and industry officials had initially hoped for a deal to be reached by early fall.

Cranes lift containers at the highly automated Long Beach Container Terminal. Automation is a major issue in West Coast labor negotiations

Stalled Negotiations

Dockworkers and employers have been unable to reach an agreement on a variety of issues, including job assignments and the installation of automated handling equipment on the docks, since the summer of 2017.

Disruptions in Cargo Operations

Since negotiations began, there have been sporadic disruptions in California and Washington, but the recent slowdowns in Los Angeles and Long Beach mark the first time so many cargo-handling operations have been affected simultaneously.

Cargo Diversion to East and Gulf Coast Ports

In anticipation of potential labor disruptions, many importers began rerouting cargo to ports on the East and Gulf Coasts during the summer of 2017. This has resulted in a decline in cargo volumes at Los Angeles and Long Beach, the principal entry points for Asian trade with the United States. Last month, container imports at these neighboring ports decreased by 38% compared to the same month one year prior, reaching their lowest level since March 2020.

Director of the Port of Los Angeles Gene Seroka attributed the decline to a decrease in global trade and cargo diversion as a result of labor negotiations. Seroka emphasized the need for a signed contract, stating, "Cargo owners have made it abundantly clear that they desire the certainty of a signed contract."

Contract Dispute Over Staggered Shifts

The PMA asserts that the previous contract permitted employers to schedule staggered mealtime shifts. The employer group argues that since the contract has expired, there is no mechanism to arbitrate the dispute or require dockworkers to maintain uninterrupted operations.

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