Source: Lisa M. Keefe, MEATINGPLACE, 8/18/16


Although the current contract doesn’t expire for another three years, meat exporters and other companies that depend on the West Coast ports to ship their goods overseas are encouraging early negotiations, or an agreement to extend the current contract, between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), which operate the ports.

The National Pork Producers Council, the Meat Importers Council of America, National Chicken Council, U.S. Meat Export Federation, USA Poultry and Egg Export Council, North American Meat Institute and the U.S. Hide, Skin and Leather Association are among 125 organizations signing a letter urging the two sides to begin early contract discussions, calling on both the ILWU and PMA to establish a new model for future negotiations that stresses early and continuous dialogue.
The goal is to avoid the delays that occurred at West Coast ports in 2015.

Testy negotiations in 2014-15 resulted in work slowdowns and cutting of hours, and the West Coast ports were in gridlock for almost four months, noted an article in the Journal of Commerce. The article said that some shippers still have not regained the market share they lost then.

The letter read, in part:

“You have ... recognized the negative economic impact of disruptions and slowdowns that occurred during the last negotiations. We believe starting negotiations early will help avoid a repeat of that experience. As we have previously stated, we believe a new model for future negotiations needs to be developed, one which stresses early and continuous dialogue. This should include a pledge by both parties to ensure there are no disruptions to cargo movement during negotiations. Maintaining the arbitration mechanisms in the existing contract for the duration of the negotiations, even if the contract expires before a final agreement is reached, is critical to that process.”

The ILWU and PMA have since agreed to begin discussions regarding a contract extension.

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