Ocean cargo: West Coast dockworker's contract not likely to meet signing deadline

Patrick Burnson -- Logistics Management, 6/30/2008

SAN FRANCISO—Despite early efforts to come to agreement with dockside labor on a new contract, Pacific Maritime Association spokesmen said the signing deadline is not likely to be met.

But  PMA Steve Getzug said in an interview that " both sides are working hard to get something on the table as soon as possible.”

 As reported in LM earlier this month, the ILWU and PMA stated that they were encouraged by progress being made in the negotiations, and expressed optimism that a new contract was in the offing. Labor analysts, suggest, however, that one major obstacle may be the new contract’s time span. Rather than renewing the existing six-year agreement, it could be three or possibly four years instead.

 “That is not without precedent,” said Getzug, “and it is certainly an element under discussion.”

 The contract expires at 5 pm on July 1, after the first longshoreman shift retires. Labor analysts, meanwhile, will be keeping their eyes fixed on July 14, when the ILWU Longshore Caucus meets to consider a full tentative agreement. The caucus, comprising nearly 100 elected delegates, will review the agreement before sending it on to the regular membership for a vote.

 For many shippers, the urgency to have such a deal approved is not what it once was, however.

 “We have been telling our members to make contingency plans in the event that a deal is not struck,” said Michael Berzon, chairman of the National Industrial Transportation League’s ocean transport committee. “The alternative ports on the U.S. east coast have been explored, as have those in Mexico and Canada. Shippers are not going to be caught off guard again if the West Coast closes down.”