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The Wall Street Journal reports that dockworkers and employers at U.S. West Coast ports are considering an extension of the five-year contract they agreed to in February of 2015, according to Commerce Secretary Penny Pritzker, who met with the two groups Friday in Los Angeles.
Extending the existing contract would avoid another contentious round of negotiations that could disrupt trade, and would ease the concerns of retailers, manufacturers and other users of the West Coast ports.
Both sides have indicated they are at least willing to consider it.
James McKenna, president of the Pacific Maritime Association, which negotiates labor contracts on behalf of West Coast port employers, told Pritzker on Friday that the association sent a letter to the International Longshore and Warehouse Union suggesting a contract extension.
Union Vice President Ray Familathe confirmed in the meeting that the ILWU received the letter and would be considering the proposition at a caucus in coming weeks.
Familathe and McKenna didn't immediately respond to messages from WSJ Friday afternoon.
When the contract came up for renewal in mid-2014, negotiations between the ILWU and PMA dragged on for nine months, leading to chronic delays at West
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Coast ports. Outside the Ports of Los Angeles and Long Beach, dozens of ships sat at anchor waiting to unload cargo for weeks.
The delays disrupted domestic and international supply chains and caused significant financial losses for many retailers.
The parties reached a deal in late February 2015, but ports around the country have continued to feel the reverberations of those disruptions, as recently as last month.
Representatives of the ILWU and PMA said at an event in February that they would consider an extension, but there had been little indication as of last month that the parties were following through on that. With the issue now officially on the agenda, it is possible that shippers may begin to breathe easier.
For more of The Wall Street Journal story: www.wsj.com
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